General Motors Company (NYSE:GM) today informed of the issuance of five more recalls of its vehicles, which will cover almost 3 million vehicles across the globe, and a charge of up to $200 million will be taken by the company. The company previously recalled the defective ignition switches that were linked with the death of at least 13 people. This did bring some bad name to the company of which it still has not overcome.
“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,” GM’s global vehicle safety chief, Jeff Boyer, said in a statement.
More recalls than ever
GM the No. 1 automaker in U.S. informed that tail lamp malfunctions are taking place because of which they are being recalled. This malfunction is leading for the need to recall more than 2.7 million cars, and the company is facing the issue with models: Chevrolet Malibu, Pontiac G6 and Saturn Aura cars and this is the biggest recall.
Malibu, Cadillac CTS sedans, Chevy Corvette sports cars, SUVs and full-size trucks are covered under the other four recalls. Of these most of the vehicles are sold in the United Sates.
General Motors Company (NYSE:GM) recalled 2.6 million vehicles earlier this year due to faulty switch. The new recalls are the actions taken to avoid any accidents in future. The company had recalled 9 million vehicles in the past 5 years and almost 12.8 million vehicles have been recalled globally this year itself.
Identifying potential problems
In an interview, Boyer talked about the company’s focus towards the potential problems and checking on their severity and frequency. GM will, also, study recalls for better handling and would try to bring further improvement to the process.
The defective ignition switch of General Motors Company (NYSE:GM) was discovered by the engineers for the first time in 2001, and the automaker is under investigation for its handling of the ignition switch by the Department of Justice, US safety regulators, Congress, the US Securities and Exchange Commission and several states.
The Detroit company took a charge of $1.3 billion, in the first quarter for the recall of the ignition switch, and in the second quarter it expect a charge of about $200 million mostly for repair costs.
