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GM Taking $300M Charge For Ignition Recall Costs

General Motors will take a $300 million charge primarily to cover the costs related to the faulty ignition switches linked to at least 12 deaths.
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/ Source: The Detroit Bureau

Still stinging from the headlines surrounding an ignition switch recall that is blamed for taking at least 12 lives, General Motors announced another three recalls on Monday covering a total of 1.5 million midsize crossover-utility vehicles, commercial vans and luxury sedans.

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The maker stressed that there have been no injuries and accidents related to the three separate service actions – recalls that might have largely been relegated to the back page had it not been for the controversy over GM’s handling of the ignition switch problem last month.

The Detroit maker is facing a series of inquiries by the U.S. Justice Department, committees on both sides of Congress, the National Highway Traffic Safety Administration – and a team of lawyers GM itself has hired to find out why it waited as much as 13 years to act on the ignition switch problem.

On Monday, GM said it will take a charge of $300 million primarily for the costs of the ignition problem recall. A spokesman said that figure could rise.

The largest of Monday's new recalls involves 1.18 million midsize crossovers including the 2008 to 2013 Buick Enclave and GMC Acadia lines, 2008 to 2010 Saturn Outlooks and 2009 to 2013 Chevrolet Traverse CUVs.

According to GM, wiring used to control the side-impact airbags mounted in the front seats of those vehicles can become corroded over time and trigger a service warning light. If motorists ignore those warning lights over time it becomes increasingly likely the airbags won’t deploy, as designed, in a side-impact crash.

More from The Detroit Bureau:

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