General Motors Recall Problem Expanding
In addition to General Motors' (NYSE: GM) previous recalls regarding ignition switches, which involved a staggering 1.5 million vehicles, the automaker announced on Monday an additional three recalls that are not related to the ignition switch.
The manufacturing giant has also said that it will take a $300 million charge against first-quarter earnings to pay for the costly recalls.
The recall that has cost GM a fortune and has triggered many lawsuits and federal investigations. GM says it knows of 31 crashes and 12 deaths that are linked to recalls.
The three separate recalls are: 303,000 Chevrolet Express and GMC Savana from the 2009-2014 model years with gross vehicle weight under 10,000 pounds 63,900 Cadillac XTS full-size sedan from the 2013 and 2014 model years 1.18 million Buick Enclave and GMC Acadia models from the 2008-2013 model years, Chevrolet Traverse from the 2009-2013 model years, and Saturn Outlook from the 2008-2010 model years
GM has said that the recalls came after new CEO Mary Barra initiated a comprehensive internal safety review following the ignition switch recall.
“I asked our team to redouble our efforts on our pending product reviews, bring them forward and resolve them quickly,” said Barra. “That is what today's GM is all about. Today's announcement underscores the focus we're putting on the safety and peace of mind of our customers. We are conducting an intense review of our internal processes and will have more developments to announce as we move forward."
Shares of the automaker are up 0.97 percent or $0.34 per share to $34.97.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.