Chevrolet cars are seen at a GM dealership in Miami.
DETROIT: General Motors Co will take a $300m charge primarily to cover the costs related to the faulty ignition switches linked to at least 12 deaths as well as three more recalls it announced yesterday.
The No. 1 US automaker, which will take the charge in the first quarter, did not provide a breakdown of how much was related to the ignition-switch recall of more than 1.6 million older-model vehicles. GM also said it is recalling more than 1.5 million newer sport utility vehicles, luxury sedans and full-size vans in three separate recalls. While there were reports of engine compartment fires in two dealer-owned Cadillac XTS sedans, the company said it has received no reports of accidents or injuries related to the three new recalls.
“I asked our team to redouble our efforts on our pending product reviews, bring them forward and resolve them quickly,” GM Chief Executive Mary Barra said in a statement. “That is what today’s GM is all about.”
She previously apologised for how GM handled the ignition switch recall and said the company would take an “unvarnished” look at the process while making customer safety and satisfaction the top priority.
The ignition-switch recall has led to government criminal and civil investigations, an internal probe by GM and preparations for hearings by Congress.