General Motors Co. (NYSE: GM) said late Monday that it will recall about 3.2 million vehicles to rework or replace the ignition keys. The keys’ design may cause it to move out of the “run” position if there is extra weight on the key ring and the key is jarred.
This is similar to but not the same as the defective ignition switch that led to the recall of some 2.6 million vehicles earlier this year. GM said that it is aware of eight crashes and six injuries related to this recall. The earlier recall has been linked to at least 13 deaths.
GM will take a charge of up to $700 million in the second quarter for the cost of all recalls issued in the quarter. The company took a $1.3 billion charge for recall-related expenses in the first quarter.
The company’s CEO, Mary Barra, is scheduled to appear on Wednesday before a committee of the U.S. House of Representatives that is investigating why it took GM 11 years to recall the 2.6 million vehicles with defective ignition switches.
In addition to the 3.2 million cars with the faulty ignition keys recalled Monday, GM also issued the following recall notices:
- More than 90,000 model year 2013 and 2014 Cadillac ATS and CTS sedans for a problem with a shift cable in the automatic transmission
- Some 57,000 model year 2015 Chevy Silverado and GMC Sierra 2500/3500 HD pickups for a possibly defective power steering hose clamp
- Nearly 17,000 model year 2011 Cadillac CTS sedans with all-wheel drive that have drive shaft problem
- More than 700 Chevy Corvettes for a design problem with the passenger side air bag
- Nearly 200 model year 2014 and 2015 Silverado and Sierra pickups with floor mats that could slip under the drivers’ feet
GM is doing what it can to give the impression that it is mending its old ways. We all wonder whether the story will ever end.
GM shares closed at $36.06 on Monday, up 1.2%, in a 52-week range of $31.13 to $41.85. Shares were up 0.1% in premarket trading Tuesday at $36.10.