GM recalls another
1.8m vehicles amid safety probe
General
Motors has announced its second massive recall in two months, calling
back 1.8 million vehicles of various models to fix a range of safety-related
problems.
General Motors headquarters. (AFP/Andrew
The latest recall of nearly 1.8 million vehicles linked
to three new problems comes as a result of an internal probe into why it took
the largest
GM is facing multiple investigations by US authorities
over its slowness to react to evidence linking a defective ignition switch to
31 accidents and 12 deaths in its 2005-7 Chevrolet Cobalt and 2003-7 Saturn
Ion models.
The problem was detected at the pre-production stage as
early as 2001, but GM waited until last month to recall 1.6 million vehicles
in
Monday's recall covered three different defects
unrelated to the ignition problems, none tied to reports of accidents or
injuries, GM said.
However, the automaker said it will take a $300 million
charge in the first quarter to cover the cost of the recalls and repairs.
The ignition recall is the first big crisis for new
chief executive Mary Barra, who took the company's helm on January 15 as the
first woman to lead a major automaker.
Barra responded forcefully, announcing she would
release an "unvarnished" report following a thorough review and
vowing to improve how GM handles defect reports.
"Today's announcement underscores the focus we're
putting on the safety and peace of mind of our customers," Barra said in
a statement Monday.
"I asked our team to redouble our efforts on our
pending product reviews, bring them forward and resolve them quickly."
In a video statement to employees, Barra called the
federal probes "serious developments that shouldn't surprise
anyone."
"After all, something went wrong with our process
in this instance and terrible things happened," she said.
Barra's transparency recognizes the damage the company
could face after painstakingly rebuilding its reputation following a 2009
government-backed bankruptcy.
Japanese rival
GM faces only small official fines at the moment: a
possible $35 million, minute compared to $155 billion in revenues last year.
Ratings group Standard and Poor's said that it would
monitor the impact of the recalls on GM's "competitive position."
"We believe reputational effects on GM could
reduce the company's market share or pricing power, even though the company
no longer produces the vehicles in question," the ratings agency wrote,
adding that the financial impact "should be manageable."
The bulk of the vehicles recalled Monday -- more than
1.5 million -- were sold in the
Of the vehicles recalled Monday, some 1.3 million were
due to a defective service air bag warning light.
The defect could prevent air bags and seat belts from
deploying during a crash.
That recall affects Buick Enclave and GMC Acadia models
from the 2008-2013 model years, Chevrolet Traverse from the 2009-2013 model
years, and Saturn Outlook from the 2008-2010 model years.
A failure to comply with a head impact requirement for
unrestrained occupants led to the recall of 355,000 Chevrolet Express and GMC
Savana from the 2009-2014 model years.
A problem with a brake booster pump which has been
linked to two engine fires in unsold vehicles at dealerships led to the
recall of 66,000 Cadillac XTS full-size sedan from the 2013 and 2014 model
years.
The news did not hurt the company's stock. GM shares
closed up 1.6 percent at $34.63 Monday.
AFP
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Thứ Ba, 18 tháng 3, 2014
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