General Motors Sets Record With Another 8.4 Million Vehicle Recall
General Motors (NYSE: GM) on Monday announced six new safety recalls related to ignition systems involving about 7.6 million U.S. vehicles (8.4 million in North America) from the 1997 to 2014 model years.
GM is aware of seven crashes, eight injuries and three fatalities related to the models in its latest recalls, the company said.
Investors can expect a $1.2 billion second-quarter charge for recall-related repairs announced in the quarter. This includes a previously disclosed $700 million charge for recalls already announced, the company said.
The company now has issued recalls for more than 27 million vehicles this year. This is now a new record for most vehicles recalled within a single year by an automaker, a spot formerly held by Ford Motor (1981, 21 million vehicles).
GM said it has made changes to every process that affects the safety of its vehicles, and the company has acted or will act on all 90 of the recommendations put forward by former U.S. Attorney Anton Valukas in a recent report to the company's board.
Until the latest ignition recall repairs have been performed, GM advised customers to remove all items from their key ring, leaving only the vehicle key, and to always use their seat belts.
Shares of GM were halted for 20 minutes Monday afternoon; since trading resumed, the stock is down less than one percent.
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