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GM’s Recall Problems Continue

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Last month, General Motors recalled 1.62 million cars worldwide because of an ignition switch issue in which the switch moves out of the “run” position, resulting in a partial loss of electric power and subsequently turning off the engine. The defect has resulted in 12 deaths and 31 crashes, and federal investigations continue into why GM has known of the switch problem since 2001 but didn’t recall the cars until February 14, 2014

New Recalls

On March 17, 2014 new GM CEO Mary Barra announced three new recalls involving another 1.5 million vehicles that are unrelated to the ignition switch recall. The new recalls involve:

According to the New York Daily News, GM expects to spend approximately $300 million in the first quarter of 2014 to repair the vehicles involved in the new recalls as well as the vehicles in the earlier recall. Barra, who has personally assumed control of GM’s recall response, is scheduled to testify about the recalls before a congressional subcommittee on April 1, 2014.

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