General Motors recalls 3 million more cars worldwide

Thursday 15 May 2014 18.31
General Motors recalls 3 million more cars.
General Motors recalls 3 million more cars.

General Motors announced a new round of recalls, totaling nearly three million vehicles worldwide, as the US car manufacturer works to speed up its response to safety issues.

GM said that five recalls affected 2.99 million vehicles, with 2.71 million in the United States. 

The company said it expected to book up to $200 million in charges in the second quarter, mainly to cover the costs of recall-related repairs.

"We have redoubled our efforts to expedite and resolve current reviews in process and also have identified and analyzed recent vehicle issues which require action," said Jeff Boyer, vice president of GM Global Vehicle Safety.

GM shares fell 0.7% to $34.70 in early trade in New York.

GM said no deaths were tied to any of the defects in the newest recalls.

The largest recall involves 2.7 million vehicles to fix a brake-lamp problem linked to 13 crashes and two injuries.

The new recalls came as the largest US automaker faces numerous lawsuits and government and congressional investigations following a delayed recall of millions of cars for faulty ignition switches linked to 13 deaths.

The ignition problem was detected at the pre-production stage as early as 2001, but the company waited until February this year to begin recalling the affected vehicles.
GM's chief executive Mary Barra, who took the company's job in January, has pledged to aggressively address the car manufacturer's safety and quality problems.

The costs of the multiple recalls are piling up. In the first quarter, GM took a $1.3 billion charge that included a $700 million expense for the 2.6 million cars recalled worldwide for faulty ignition switches and ignition cylinders.

Other recalls, totaling 4.5 million vehicles, cost $600 million.