News

GM recalls another 1.5M vehicles

GM recalls another 1.5M vehicles

MORE RECALLS: GM said it is recalling more than 1.5 million newer sport utility vehicles, luxury sedans and full-size vans in three separate recalls. Photo: Reuters

DETROIT (Reuters) – General Motors Co will take a $300 million charge primarily to cover the costs related to the faulty ignition switches linked to at least 12 deaths as well as three more recalls it announced on Monday.

The No. 1 U.S. automaker, which will take the charge in the first quarter, did not provide a breakdown of how much was related to the ignition-switch recall of more than 1.6 million older-model vehicles.

GM also said it is recalling more than 1.5 million newer sport utility vehicles, luxury sedans and full-size vans in three separate recalls. While there were reports of engine compartment fires in two dealer-owned Cadillac XTS sedans, the company said it has received no reports of accidents or injuries related to the three new recalls.

“I asked our team to redouble our efforts on our pending product reviews, bring them forward and resolve them quickly,” GM Chief Executive Mary Barra said in a statement. “That is what today’s GM is all about.”

She previously apologized for how GM handled the ignition switch recall and said the company would take an “unvarnished” look at the process while making customer safety and satisfaction the top priority.

“We are conducting an intense review of our internal processes and will have more developments to announce as we move forward,” Barra said on Monday.

The ignition-switch recall has led to government criminal and civil investigations, an internal probe by GM and preparations for hearings by Congress. All ask why GM took so long to address a problem it has said first came to its attention in 2001.

GM said that when the ignition switch was jostled, a key could turn off the car’s engine and disable airbags, sometimes while traveling at high speed. GM has said it received reports of 12 deaths and 34 crashes in the recalled cars, although safety advocate groups have urged a deeper investigation, arguing the number of fatalities involved has been understated.

On Friday, the Detroit automaker was hit with what appeared to be the first lawsuit related to the ignition-switch recall, as customers claimed their vehicles lost value because of the ignition switch problems. The proposed class action was filed in a Texas federal court.

(Reporting by Ben Klayman; editing by Matthew Lewis)

Recent Headlines

in Sports

Only arguing remains in Sterling trail

Fresh
FILE - In this Nov. 12, 2010, file photo, Shelly Sterling sits with her husband, Donald Sterling, right, during the Los Angeles Clippers' NBA basketball game against the Detroit Pistons in Los Angeles. With a $2 billion sale of the Clippers hanging in the balance, a judge is set to determine Monday, June 30, 2014, if the terms of a family trust alone are enough to confirm Donald Sterling was properly removed as trustee and allow his estranged wife to sell the team without his consent.

Only final arguments and a ruling remain in the trial to determine whether Donald Sterling's estranged wife can sell the Los Angeles Clippers for $2 billion.

in Sports

Paul McGinley pulls out of PGA Championship with injury

Paul McGinley of Ireland laughs during a news conference after being named the European Ryder Cup captain at the St. REgis in Saadiyat Islands in Abu Dhabi on January 15, 2013.

European Ryder Cup captain Paul McGinley has pulled out of the PGA Championship with a shoulder injury.

in National

Dollar Tree to buy Family Dollar for $8.5 billion

FILE - In this Tuesday, Nov. 29, 2005, file photo, customers walk past a Family Dollar store at Hickory Grove Market in Charlotte, N.C. Dollar Tree is buying rival discount store Family Dollar in a cash-and-stock deal valued at about $8.5 billion, the companies announced Monday, July 28, 2014.

Discount store chain Dollar Tree Inc offered to buy rival Family Dollar Stores Inc for about $8.5 billion.

in Sports

South African Tim Clark wins Canadian Open

Tim Clark tees off the 12th hole during the third round of the RBC Canadian Open at Royal Montreal GC - Blue Course on July 26, 2014.

South African Tim Clark sank a six-foot par putt to beat American Jim Furyk by one stroke at the Canadian Open.

in National

Tentative agreement reached on U.S. veterans’ funding bill

Senator-elect Bernie Sanders (I-VT) is interviewed by a Reuters reporter at Sanders' office in Burlington, Vermont on November 28, 2006.

The head of the Senate Committee on Veterans' Affairs, and his House counterpart will outline the funding agreement at a news conference today.