General Motors recalls 3 million more cars worldwide

AFP, Thursday 15 May 2014

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

GM said that five recalls affected 2.99 million vehicles, with most of them -- 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 analysed recent vehicle issues which require action," said Jeff Boyer, vice president of GM Global Vehicle Safety.

"These are examples of our focus to surface issues quickly and promptly take necessary actions in the best interest of our customers."

GM shares fell 0.7 per cent 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.

Corrosion in the wiring harness "could result in brake lamps failing to illuminate when the brakes are applied or brake lamps illuminating when the brakes are not engaged," GM said.

That recall affects the 2004-2012 Chevrolet Malibu, 2004-2007 Chevrolet Malibu Maxx, 2005-2010 Pontiac G6 and 2007-2010 Saturn Aura.

GM also recalled 120,620 Chevrolet Corvettes in model years 2005-2007 due to a problem with the low-beam headlamp.

The three other recalls were for problems with brakes, windshield wipers and steering gear. They affect 21,563 2014 Cadillac CTS; 144,780 2014 Chevrolet Malibu; and 520 2014 Chevrolet Silverados, 2014 GMC Sierra light-duty pickups and 2015 Chevrolet Tahoe sport utility vehicles.

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 automaker'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.

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