GM safety crisis grows as recalls mount

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DETROIT (AP) — General Motors’ safety crisis worsened on
Monday when the automaker added 8.2 million vehicles to its ballooning
list of cars recalled over faulty ignition switches.
The latest
recalls involve mainly older midsize cars and bring GM’s total this year
to 29 million, surpassing the 22 million recalled by all automakers
last year. The added recalls also raise questions about the safety of
ignition switches in cars made by all manufacturers.
GM said the
recalls are for "unintended ignition key rotation" and cover seven
vehicles, including the Chevrolet Malibu from 1997 to 2005, the Pontiac
Grand Prix from 2004 to 2008, and the 2003-2014 Cadillac CTS.
The
company is aware of three deaths, eight injuries and seven crashes
involving the vehicles, although it has no conclusive evidence that
faulty switches caused the accidents.
CEO Mary Barra said the recalls stem from an extensive safety review within the company.
"If any other issues come to our attention, we will act appropriately and without hesitation,"
she said in a statement.
The
announcement of more recalls extends a crisis for GM that began in
February with small-car ignition switch problems. GM recalled 2.6
million older small cars worldwide because the switches can unexpectedly
slip from "run" to "accessory," shutting off the engines. That disables
power steering and power brakes and can cause people to lose control of
their cars. It also stops the air bags from inflating in a crash. GM
has been forced to admit that it knew of the problem more than 10 years,
yet it failed to recall the cars until this year.
GM’s conduct in
the small-car recall already is under investigation by the Justice
Department and both houses of Congress. Earlier this year, the company
paid a $35 million fine to the National Highway Traffic Safety
Administration for delays in reporting the small-car ignition switch
problems.
On June 18, NHTSA opened two investigations of Chrysler
minivans and SUVs as part of a widening inquiry into air bag and
ignition switch problems across the U.S. auto industry.
NHTSA
began asking automakers and parts suppliers for information on the
interrelated issues after GM’s small-car recall. NHTSA asked automakers
and parts makers for information on switches and how long air bags will
inflate after the keys are moved out of the "run" position to
"accessory" or "off." In many cases, the answer is less than a second.
That
led to the Chrysler inquiries, NHTSA said in a statement. "The agency
examined all major manufacturers’ air bag deployment strategies as they
relate to switch position," the agency said in a statement. "NHTSA will
continue to refine its knowledge of these systems."
GM’s recalls
on Monday bring this year’s total so far to more than 40 million for the
U.S. industry, far surpassing the old full-year record of 30.8 million
from 2004.
The recalls come just hours after the company’s
compensation consultant, Kenneth Feinberg, announced plans to pay
victims of crashes caused by the defective small-car switches. Attorneys
and lawmakers say about 100 people have died and hundreds were injured
in crashes, although Feinberg said he didn’t have a total.
Feinberg said the company has placed no limit on how much he can spend in total to compensate victims.

GM
spokesman Alan Adler said that in the Cadillacs, the ignition can slip
due to jarring from the road, a bump on the key from the driver’s knee
or from the weight of a heavy key chain. In the older model midsize
Chevrolets, Pontiacs and Oldsmobiles, only jarring or heavy keys — and
not a bump from the driver’s knee — can knock the ignition out of
position.
In all the cases, the ignition switches out of the "run" position and into the
"accessory" or "off" position.
Adler
said that, unlike GM’s previous recall of 2.6 million Chevrolet Cobalts
and other small cars, the ignition switch is made to GM’s
specifications. But the keys can slip too easily. The company will place
inserts on the keys to fix the issues.
Adler said GM began
investigating all of its ignition switches 60 days ago after the Cobalt
recall revealed problems. This recall came out of that investigation.
GM is urging people to remove everything from their key rings until the recalled cars can be repaired.

Of
the three people who died in crashes involving the newly recalled
vehicles, it’s unclear whether those deaths were ignition-related, Adler
said. In each of the cases the air bags didn’t deploy, but there are
many reasons air bags don’t deploy, including the angle the car is hit
and whether or not the occupants were belted, he said.
Adler said
victims in the newly recalled vehicles won’t be included in the
compensation fund that has been set up for the small-car case.
The
Detroit company said it plans to take a $1.2 billion charge in the
second quarter for recall-related expenses. Added to a $1.3 billion
charge in the first quarter, that brings total recall expenses for the
year to $2.5 billion.
GM also announced four other recalls Monday
covering more than 200,000 additional vehicles. Most are to fix an
electrical short in the driver’s door that could disable the power locks
and windows and even cause overheating.
Of the 29 million vehicles recalled this year, 17.1 million have been over ignition switches
GM’s stock fell 27 cents, or less than one percent, to $36.36 in late afternoon trading.

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