Thursday, April 10, 2014

GM to fix new issue on recalled cars, costs grow

General Motors said on Wednesday it must do more work than planned on the ignition of some of its recalled small cars.

GM expanded the ignition switch recall for the 2003 to 2011 cars to include replacing an additional part of the ignition mechanism -- the "lock cylinder" in which the key is inserted -- because it could allow the key to be pulled out while the cars is running.

As a result, GM now says it will take $1.3 billion charge against first-quarter earnings for costs of the expanded recall. That's up from the $300 million that GM first announced and later expanded to more than $700 million. GM has expanded the universe of recalled cars twice before adding the new work on Wednesday.

That defect, GM says, could lead to "a possible roll-away, crash and occupant or pedestrian injuries."

GM said it is "aware of several hundred complaints of keys coming out of ignitions. Searches of GM and government databases found one roll-away in a parking lot that resulted in a crash and one injury claim. The same searches turned up no fatalities."

The faulty switches in the main recall are linked by GM to 31 crashes and 12 deaths in the U.S. and one fatal crash in Canada. The switches can inadvertently slip out of the "run" position, shutting off the engine and disabling airbags.

GM dealers just now are getting the first parts to replace the ignition switches under that recall. Now dealers also "replace the ignition lock cylinders" and "if necessary, reprogram new keys."

GM says that the switches and lock cylinders -- which are from different suppliers -- are being package together and the work will be done in the same repair visit.

Vehicles involved in the ignition recall:

•2003-2007 Saturn Ion

•2005-2010 Chevrolet Cobalt

•2006-2010 Pontiac Solstice

•2007-2010 Pontiac G5

•2007-2010 Saturn Sky

•2006-2011 Chevrolet HHR

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