General Motors Recalls Another 2.4 Million Vehicles

GM recalls another 2.4 million vehicles.Reuters

Troubled automaker General Motors has recalled another 2.4 million vehicles globally, to deal with potentially faulty air bags, fire issues, seat belts and transmissions.

The latest batch of recalls include the Buick Enclave, Chevrolet Traverse and GMC Acadia medium crossovers from the 2009-2014 model years and Saturn Outlooks from 2009-2010; Chevrolet Malibu from the 2004-2008 model years and Pontiac G6 from the 2005-2008 model years; Cadillac Escalades and Escalade ESVs from the 2015 model year; and Chevrolet Silverado HD and GMC Sierra HD full-size pickups also from the 2015 model year.

There have been no fatalities associated with the recalls, the Detroit automaker said in a statement on 20 May. The recalls mostly affect vehicles sold in the US.

GM on Tuesday also doubled the charge it expects to assume in the second-quarter, to about $400m (£237m, €292m), mostly covering the cost of recall-related repairs.

The latest batch of recalls brings GM's total for the year the world over to almost 15.4 million.

GM's stock finished 3.45% lower on 20 May in New York.

GM Fined $35m

Last week, GM agreed to pay a record fine to settle an investigation that alleged it delayed recalling cars with faulty ignition switches.

GM reached an agreement with the US National Highway Traffic Safety Administration (NHTSA) and will pay $35m – the maximum fine allowed by US law.

"We have learned a great deal from this recall. We will now focus on the goal of becoming an industry leader in safety," GM CEO Mary Barra said in a statement.

Mounting Recalls

On 15 May, GM recalled 2.7 million vehicles globally, to deal with tail lamp malfunctions, adding to the 2.6 million cars recalled earlier for faulty ignition switches.

Earlier in the month General Motors was ranked the worst large car maker to deal with by suppliers, according to a survey by automotive consultant group Planning Perspectives.

Over half of the suppliers (55%) surveyed described their relationship with GM as "poor to very poor" – up from 48% last year. GM wins the dubious claim of least popular car maker from Chrysler, which has held it since 2008.

Toyota came on top of the list, with Honda second, while Nissan took third place pushing Ford down to fourth. Chrysler was elevated to fifth courtesy of GM's dismal last placing.

Downbeat Results

Last month, GM reported its worst quarterly performance in over four years.

The firm on 24 April said first-quarter profit had plunged 88% in the wake of the ignition-switch recalls.

However, results still beat expectations on improving sales of higher-priced and redesigned pickup trucks in North America.

The January-March quarter included the previously revealed charge of $1.3bn for the ignition-switch recall, and Chief Financial Officer Chuck Stevens said it was too early to foretell whether GM would have to factor in more charges.