General Motors, after being publicly condemned for the very late recall of cars equipped with a defective ignition switch, embarked on a safety crusade which so far led to 29 recalls and close to 16 million vehicles in need of service.
The company posted a huge charge for the first quarter of the year, mainly due to recall related costs, which nearly wiped out the profits of the US automaker, and looks to continue to lose money in the second quarter as well.
“They let the genie out of the bottle and can’t put it back in,” said Jack Nerad, executive market analyst at auto researcher Kelley Blue Book. “They’re almost certainly going to be finding more.”
But the troubles are not over, as US safety regulators are still probing around 2 million cars for potential defects, which could ultimately lead to new recalls. The National Highway Traffic Safety Administration, according to data from its website, is now addressing customer complaints that range from corroding brake lines to the failure of automatic braking or the headlights.
In the US alone, General Motors has so far recalled no less than 14 million cars, a tally which has already greatly surpassed the last record, set in 2004, of 10.7 million-vehicles.