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GM announces new recall, 8.5 million vehicles affected

Posted on in Car Accidents

Because of a statement made by GM’s CEO last month, we knew that there was a possibility of more recalls involving vehicles with ignition-switch defects in the upcoming months. But despite this knowledge, some of our California readers may have felt their hearts drop when GM announced last month its most recent recall.

Covering some 8.5 million vehicles, the current recall contains more models that GM believes could have defective vehicle parts ranging from the infamous ignition-switch to potential electrical problems to possible engine block issues. All of these issues, GM believes, could put motorists at risk of an accident.

The largest issue, the ignition-switch defect, can cause a person’s key to slide out of the “on” position. This can cut power to the vehicle, interfering with important systems necessary to operate the vehicle safely. Though GM claims to have a fix and is encouraging customers to bring vehicles to dealers to have their ignition switches replaced, only time will tell if this is the fix that will put an end to the long list of recalls.

This latest recall adds to the existing ones we talked about in a June 19 post on this blog and raises the count of recalled vehicles to roughly 29 million for GM in North American alone. Reports estimate that GM has charged $1.2 billion to its earnings to cover the costs of the recalls. It’s unknown if this figure also factors in the fund that has been set aside to compensate victims and their families who suffered damages from the automotive defect.

Source: The Wall Street Journal, “GM to Recall 8.45 Million More Vehicles in North America,” Jeff Bennett, June 30, 2014

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