General Motors announced yesterday that it will take a $300 million charge to cover the expenses related faulty ignition switches. Faulty ignition switches have been linked to 12 deaths and three prior recalls.
“Whether drug or auto maker, companies have a responsibility to test and inspect the products they intend to market and sell to the American public,” said Megan McBride, defective product attorney with Levin, Papantonio P.A. “Their seems to be a perceived negligence associated with the issues regarding this company.”
In a public admission considered “unprecedented,” GM’s CEO, Mary Barra, said that the company fell short in properly catching the bad ignition switches. The issues prompted GM to recall over 3.1 sport utility vehicles, luxury sedans, and full-size vans throughout the three previous recalls.
Despite GM reporting no accidents or injuries connected to the recalls, there were reports of engine compartment fires in Cadillac XTS sedans. The most recent recall, occurring last month, called for the removal of 1.5 million GM cars from the market and covered airbag wiring harnesses and brake parts, among other things.
The latest recall is related to an issue that could lead to failed deployment of side airbags in the event of an auto accident. The vehicles recalled are some 2008-2009 and all 2010-2013 Buick Enclaves and GMC Acadia crossovers, some 2009 and all 2010-2013 Chevy Traverses and all 2010 Saturn Outlooks.
There were brake booster pump wiring issues in the Cadillac XTS cars, which can lead to overheating and possible engine compartment fires. The two reports of Cadillac fires were reported in June and September of last year. There were also reports of melted components.
Barra said that the company will conduct a thorough examination of the vehicles in question as a result of the recalls and admitted that “something went wrong with our process in this instance, and terrible things happened.”