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General Motors Still Under Fire For Massive Recall

General Motors is trying to clean up, not one, but several recalls. First, the car company had to recall 1.62 million vehicles worldwide for an issue with an ignition switch. Now problems have surfaced with seat-mounted side airbags, which can fail due to a wiring fault in 1.18 million full-size crossover SUVs: the 2009-2013 Chevrolet Traverse, 2008-2013 Buick Enclave, 2008-2013 GMC Acadia and the 2008-2010 Saturn Outlook.

CEO Mary Barra has spoken out in a letter and on video, defending GM, “As a member of the GM family and as a mom with a family of my own this really hits home for me,” Barra said.

She added, “Of course, recalls of this size and scope always take time to play out.  Various other parties will naturally be involved, and GM will cooperate fully.  You can expect additional developments in the near term. — When this was brought to my team a few weeks ago, we acted without hesitation to go well beyond the decision by the technical experts.”

Will GM have to pay up, just as Toyota did? Toyota Motor Corp just announced that they will pay a record $1.2 billion to resolve a criminal probe into safety issues. GM said that they will take a $300 million charge against first-quarter earnings to pay for the four recalls. This could be just the start of their issues and check writing…

For more info on the recall: http://www.gm.com/ignition-switch-recall.html

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