GM to recall 8.2 million more vehicles over ignition-switch defect

posted at 3:21 pm on June 30, 2014 by Ed Morrissey

The recall blues continue at GM, as does the scope of their previously hidden ignition-switch defect.  The world’s largest automaker added 8.45 million more vehicles to its list, with some models going back to 1997. This puts GM over the 28-million mark for cars recalled on a global basis in 2014, and over 26 million domestic:

General Motors Co. (GM), which has already called back more than 20 million cars in North America for various fixes this year, recalled 8.45 million more today for defects including ignitions and electrical malfunctions.

GM is recalling 8.23 million cars for unintended ignition key rotation, including Chevrolet Malibus from 1997 to 2005 and Cadillac CTS cars from the 2003 to 2014 model years. Among the vehicles recalled today, GM said it’s aware of seven crashes, eight injuries and three fatalities. The fatal crashes occurred in older full-size sedans being recalled for the ignition flaw.

It isn’t clear whether the faulty ignition caused those crashes GM said.

Recalls don’t come cheap, either. This recall will cost the automaker an additional $500 million, adding to the $700 million charge it took in the second quarter for the previous recalls. That’s a big loss for a defect known to GM long before the bailout, and known to the National Highway Transportation Safety Administration (NHTSA) during it.

That’s why some investors are likely also saying, “Are you kidding me?” Treasury divested itself of its GM stock in December, just coincidentally before all of the defects became important enough to address. The people who bought that stock had no idea that GM would need to pull 27 million vehicles off the road for critical repairs, but the question will be whether the NHTSA and Obama administration knew about it before dumping their stock. Had any individual investor done that, he’d be looking at a criminal probe from the SEC.

The CNBC analyst asks a good question about GM cars: How many are still on the road? That Subaru lease is looking better and better, I tell you …

Ironically, just an hour or so earlier, Yahoo noted that GM was “restoring trust“:

Since some of the crashes involving Chevrolet Cobalts, Saturn Ions and several other vehicle types occurred years ago — before GM publicly acknowledged the problem — it may be impossible to prove the dodgy ignition switch was a factor. So GM could be stingy with payouts if it chooses to.

But that would defeat the purpose of a compensation fund meant to restore trust with customers. Plus, GM has waived its right to deny liability in cases that occurred before July 2009, when past liabilities were transferred to a husk company as part of GM’s bankruptcy proceedings. Had GM stuck by those terms, victims could have lodged claims against the “old GM” but would have become mere creditors seeking pennies on the dollar from an entity set up to liquidate assets GM shed in Chapter 11. Feinberg’s plan will almost certainly offer more-generous outcomes than that, allowing GM CEO Mary Barra to argue that GM has fulfilled her promise to honor its “civic duty.”

From a financial perspective, however, GM still faces two big challenges. One is a spate of class-action lawsuits filed on behalf of GM customers whose cars may have lost value by being associated with the ignition controversy. So far, GM has recalled nearly 8 million vehicles with the faulty part. One such suit, seeking $10 billion or more in damages, claims the ignition scandal has shaved $500 to $2,600 off the value of a variety of GM vehicles now in the hands of owners. …

Despite the bumpy road ahead, investors seem confident GM will regain cruising speed. The company’s share price is basically the same as it was in early February, when GM announced the first recall involving the ignition switch. And GM sales have remained strong, largely because its current lineup of vehicles is a leap ahead of the shoddy Cobalts and Ions that left the line with the faulty switch. GM, in fact, doesn’t even make those vehicles any more. Sooner or later, the automaker will outrun its troubled past.

There may come a day when GM outruns its “troubled past,” restores confidence and trust with the consumer, and doesn’t issue recalls by the millions. Clearly, though, today is not that day.

Update: There was some confusion over the headline, which noted 8.45 million recalls overall — today. I took that out, as the real “overall” figure is now well above 28 million (a figure I also corrected).


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When will Gubmint Motors go belly up?

OmahaConservative on June 30, 2014 at 3:23 PM

Osama is dead, and so is GM.

Schadenfreude on June 30, 2014 at 3:24 PM

“If you bought a GM vehicle, you can keep your GM vehicle.” *
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*until it kills you.

PolAgnostic on June 30, 2014 at 3:24 PM

Ford thrives, on its own.

Schadenfreude on June 30, 2014 at 3:24 PM

Female CEO–war on women for the win!

hillsoftx on June 30, 2014 at 3:25 PM

Gee on top of the Saturn Ion ignition switch problem, I also received notice of a defect in the power steering where it can go out any time, anywhere.

GM has its own long waiting list for replacement parts for all vehicles. Maybe hoping for some to be totaled in wreck eliminating the need for the critical repairs.

hawkeye54 on June 30, 2014 at 3:26 PM

Things you will never see me drive:
a) A golf ball
b) A GM product
c) A Kardashian sister

M240H on June 30, 2014 at 3:26 PM

GM is alive and Bin Laden is dead!

You might join Bin Laden if you drive a GM vehicle, though.

Bishop on June 30, 2014 at 3:26 PM

Ford thrives, on its own.

Schadenfreude on June 30, 2014 at 3:24 PM

I am a happy Ford customer.

Is there any vehicle that Government Motors has produced in the last decade that ISNT under recall right now?

And how are they going to pay for all this and the lawsuits without going bankrupt yet again? Or is Government Motors going to claim sovereign immunity for the years they were a Government Entity?

Also, when is the CEOtrix making the orange jumpsuit perpwalk?

ConstantineXI on June 30, 2014 at 3:27 PM

What was the slogan again? “GM is clinging to life and al Qaeda has a Caliphate”

forest on June 30, 2014 at 3:27 PM

What are GM’s death and injury numbers compared to mass shootings in the same time period?

rogerb on June 30, 2014 at 3:28 PM

Headline check – think you’re second figure is incorrect?

Midas on June 30, 2014 at 3:28 PM

What was the slogan again? “GM is clinging to life and al Qaeda has a Caliphate”

forest on June 30, 2014 at 3:27 PM

I think it was, “anything Barack HUSSEIN Obama touches turns into shiite”.

ConstantineXI on June 30, 2014 at 3:28 PM

Bought my last GM in 1978.Didn’t have it one year.You name it,it broke.

docflash on June 30, 2014 at 3:28 PM

I used to be the biggest GM supporter you could find, and in 2005 it really looked like they had a plan to move forward. But then management got soft and they fell back into old habits. Then they went bankrupt. Then they buddied up with the Government. Then all this recall stuff.

I will never buy another GM vehicle so long as I live.

Gatsu on June 30, 2014 at 3:29 PM

Maybe I’m just not following the numbers correctly.

Midas on June 30, 2014 at 3:30 PM

OT – more leftist heads going poof. Tough day.

Schadenfreude on June 30, 2014 at 3:31 PM

I will never buy another GM vehicle so long as I live.

Gatsu on June 30, 2014 at 3:29 PM

My wife and I bought Saturns because of the way it did business. Once it was forced into yielding to unions, surrendered its individuality and shortly after was eliminated as a GM division, my wife and I were sadly disappointed and we will be looking elsewhere when it comes time for new vehicles. Certainly not GM.

hawkeye54 on June 30, 2014 at 3:32 PM

Biden is excited, he announced that once again GM is leading the news cycle.

“GM will be big news from now on since we bailed them out, there won’t be a week go by where they are not mentioned, they are that important to our economy”, Biden exclaimed…

right2bright on June 30, 2014 at 3:33 PM

I think it was, “anything Barack HUSSEIN Obama touches turns into shiite”.

ConstantineXI on June 30, 2014 at 3:28 PM

Obumbles is the AntiMidas.

hawkeye54 on June 30, 2014 at 3:33 PM

Maybe I’m just not following the numbers correctly.

Midas on June 30, 2014 at 3:30 PM

No, I hadn’t updated some of the numbers. The first report was for 7.6 million, which then later became 8.23 million for the ignition switch and 220K for other reasons. I’ve fixed it now.

Ed Morrissey on June 30, 2014 at 3:35 PM

Does the defect covers the President?

Oil Can on June 30, 2014 at 3:36 PM

Bought my last GM in 1978.Didn’t have it one year.You name it,it broke.

docflash on June 30, 2014 at 3:28 PM

I’ve been driving since 1988. I’ve had 5 cars, 3 Fords, 1 Dodge, and one Chevy.

The two non-Fords were awful enough to make me swear to never have another one from that manufacturer:

1987 Dodge Charger (a complete insult to the name)
1996 Chevy Cavalier (a $300 repair every other month)

In between I had a 1993 Ford Escort that served me for 11 years, 390,000 miles and not one major problem. What can I say? I got the Cavalier for free. That’s about what it was worth.

ConstantineXI on June 30, 2014 at 3:36 PM

I have been extremely happy with my Toyota pickup…

OmahaConservative on June 30, 2014 at 3:37 PM

My wife and I bought Saturns because of the way it did business. Once it was forced into yielding to unions, surrendered its individuality and shortly after was eliminated as a GM division, my wife and I were sadly disappointed and we will be looking elsewhere when it comes time for new vehicles. Certainly not GM.

hawkeye54 on June 30, 2014 at 3:32 PM

This.

GM (around 05-06 UAW contract negotiations) had a solid plan, Saturn would be re-branded Opel cars, Pontiac re-branded Holden cars, Buick would be redone as a Lexus competitor, and Cadillac would move further up the luxury chain, with them and Chevy being the only “full line” brands (Saturn, Pontiac, Buick would have their line ups slimmed down.)

BUT the UAW was having none of that, then the dealers revolted at the loss of the full line Buick and Pontiac brands, and here we are today. All because management could not stick to its guns.

Gatsu on June 30, 2014 at 3:38 PM

Obumbles is the AntiMidas.

hawkeye54 on June 30, 2014 at 3:33 PM

When you absolutely, positively, are going to pay A LOT for this muffler!

(that will fall off along with the tailpipe a half mile down the road)

ConstantineXI on June 30, 2014 at 3:38 PM

Treasury divested itself of its GM stock in December, just coincidentally before all of the defects became important enough to address.

This is criminal fraud by the Obama administration. These problems have been known for years. These are not 2013/14 models.

I had one of these ignition switches replaced years ago. The car turned off as it was going down the road. The steering locks up or freezes and I was lucky not to be in a serious wreck.

faraway on June 30, 2014 at 3:38 PM

Obumbles is the AntiMidas.

hawkeye54 on June 30, 2014 at 3:33 PM

If you don’t mind, I’ll take that as a high compliment.

Midas on June 30, 2014 at 3:39 PM

Next up, recall of all the cars in the 1920 – 60s because no airbags. Need to be retrofitted.

It is a wonder that class action suits haven’t been filed by the owners and also the shareholders who bought the stock in December when Jugears sold the last of the shares.

I guess the trial attorneys (AKA Democrat party) don’t want to embarass Barak.

Pretty soon GM showrooms will be as empty as the North Korea tourist bureau.

txdoc on June 30, 2014 at 3:40 PM

I had one of these ignition switches replaced years ago. The car turned off as it was going down the road. The steering locks up or freezes and I was lucky not to be in a serious wreck.

faraway on June 30, 2014 at 3:38 PM

When I am on the Interstate (we refer to it as that around here because we only have one… I-64) I make it a point to NOT be following behind any Government Motors vehicle for that reason. I change lanes and leave them in the rearview mirror.

ConstantineXI on June 30, 2014 at 3:41 PM

Pretty soon GM showrooms will be as empty as the North Korea tourist bureau.

txdoc on June 30, 2014 at 3:40 PM

To even CONSIDER purchasing a Government Motors vehicle at this point is proof of INSANITY.
It’s not as if they are any cheaper than Fords or much cheaper than a Toyota or Hyundai, all of which are better cars.

ConstantineXI on June 30, 2014 at 3:43 PM

1987 Dodge Charger (a complete insult to the name)

ConstantineXI on June 30, 2014 at 3:36 PM

Hahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahaha

Isn’t that the one that had a TV commercial that lasted about a week that said “Out-corners Porsche in the slalom”?

Porsche debunked that in a day.

BobMbx on June 30, 2014 at 3:44 PM

Had any individual investor done that, he’d be looking at a criminal probe from the SEC.

I’m pretty sure the government under Obama isn’t too worried.

pain train on June 30, 2014 at 3:45 PM

Isn’t that the one that had a TV commercial that lasted about a week that said “Out-corners Porsche in the slalom”?

Porsche debunked that in a day.

BobMbx on June 30, 2014 at 3:44 PM

Yep.

Mine had a 2 barrel carburetor that never worked right, even when rebuilt or replaced, giving the already crappy 86 HP 2.2L 4 cylinder engine a 0-60 time measured in MINUTES. Doubtless my parents didn’t mind, my first car was sporty looking for the time (1990) but wouldn’t go fast…

ConstantineXI on June 30, 2014 at 3:50 PM

Insider Trading pure and simple.
Must be nice to work for the Govt and be above the Law, right Barry?

Pelosi Schmelosi on June 30, 2014 at 3:52 PM

Leader of Mississippi College Republicans Resigns to Join Democrats

Read more: http://dailycaller.com/2014/06/30/leader-of-mississippi-college-republicans-resigns-to-join-democrats/#ixzz369cMBL6q

A Cochran man.

faraway on June 30, 2014 at 3:54 PM

Sooner or later, the automaker will outrun its troubled past.

Betting on later with my money. No sane person would subject their family to the possibility of more hidden defects by buying a GM product in the near term.

Johnnyreb on June 30, 2014 at 3:54 PM

Insider Trading pure and simple.
Must be nice to work for the Govt and be above the Law, right Barry?

Pelosi Schmelosi on June 30, 2014 at 3:52 PM

Shut up, PEASANT, Obama is royalty as such that questioning his motives is treason!

/sarc

ConstantineXI on June 30, 2014 at 3:55 PM

#EyalGiladNaftali

May they be avenged.

kcewa on June 30, 2014 at 3:55 PM

Leader of Mississippi College Republicans Resigns to Join Democrats

Read more: http://dailycaller.com/2014/06/30/leader-of-mississippi-college-republicans-resigns-to-join-democrats/#ixzz369cMBL6q

A Cochran man.

faraway on June 30, 2014 at 3:54 PM

College RINOs. I hate college RINOS.

(starts engine…)

(1,000 Internet Points to whomever gets the movie reference)

ConstantineXI on June 30, 2014 at 3:56 PM

College RINOs. I hate college RINOS.

(starts engine…)

(1,000 Internet Points to whomever gets the movie reference)

ConstantineXI on June 30, 2014 at 3:56 PM

I thought that was Illinois Nazi’s.

Johnnyreb on June 30, 2014 at 4:00 PM

I thought that was Illinois Nazi’s.

Johnnyreb on June 30, 2014 at 4:00 PM

Warm. Name the movie.

ConstantineXI on June 30, 2014 at 4:01 PM

Still no post on the 3 murdered Israeli teens. Hmmmm……

jawkneemusic on June 30, 2014 at 4:01 PM

Warm. Name the movie.

ConstantineXI on June 30, 2014 at 4:01 PM

Blues Brothers for 1,000.

Johnnyreb on June 30, 2014 at 4:03 PM

…where’s Joe Biden?

JugEarsButtHurt on June 30, 2014 at 4:03 PM

Warm. Name the movie.

ConstantineXI on June 30, 2014 at 4:01 PM

Blues Brothers for 1,000.

Johnnyreb on June 30, 2014 at 4:03 PM

Winnah!

For the record, I hate Illinois Nazis too. And we have one in the Spite House now.

ConstantineXI on June 30, 2014 at 4:04 PM

I had both an ’04 Malibu and an ’05 Ion. The powersteering went out within two months of ownership on the ‘bu. Chevy fixed it and gave me a rental in the meantime. Never had trouble with the Ion or the ‘bu with ignition. The ‘bu would periodically chime that the steering was out, but itnever was. My mech said it was a bad sensor to the diagnostic system and the steering was fine. The Ion got totaled when broadsided after 80 K miles. The ‘ bu is in the d’way with 90K but I drive my ’11 Sonata se. Great car! Would like to sell the bu since it’s not used since my wife passed but who’d buy it now?

xkaydet65 on June 30, 2014 at 4:06 PM

When will the Board pull Mary Barra ‘off the street’ and kick her to the curb?

Another Drew on June 30, 2014 at 4:14 PM

When will the Board pull Mary Barra ‘off the street’ and kick her to the curb?

Another Drew on June 30, 2014 at 4:14 PM

When Obama makes her the next labor secretary.

ConstantineXI on June 30, 2014 at 4:16 PM

I had both an ’04 Malibu and an ’05 Ion. The powersteering went out within two months of ownership on the ‘bu. Chevy fixed it and gave me a rental in the meantime. Never had trouble with the Ion or the ‘bu with ignition. The ‘bu would periodically chime that the steering was out, but itnever was. My mech said it was a bad sensor to the diagnostic system and the steering was fine. The Ion got totaled when broadsided after 80 K miles. The ‘ bu is in the d’way with 90K but I drive my ’11 Sonata se. Great car! Would like to sell the bu since it’s not used since my wife passed but who’d buy it now?

xkaydet65 on June 30, 2014 at 4:06 PM

I smell a class action suit that will make a bunch of John Edwardses rich (and 10 million people a rebate check good for $5 off their next GM purchase) based on the effect this has had on resale value.

Question is, will any trial lawyer coterie dare take on the Darling Child of the Obama Regime?

I suspect the answer to that is YES. Money is always more important than morals or loyalty to the Trial Lawyers.

ConstantineXI on June 30, 2014 at 4:18 PM

That’s why some investors are likely also saying, “Are you kidding me?” Treasury divested itself of its GM stock in December, just coincidentally before all of the defects became important enough to address. The people who bought that stock had no idea that GM would need to pull 27 million vehicles off the road for critical repairs, but the question will be whether the NHTSA and Obama administration knew about it before dumping their stock. Had any individual investor done that, he’d be looking at a criminal probe from the SEC.

…unless he’s a member of Congress or congressional staff, because insider trading is totally cool for them.

slickwillie2001 on June 30, 2014 at 4:30 PM

The people who bought that stock had no idea that GM would need to pull 27 million vehicles off the road for critical repairs, but the question will be whether the NHTSA and Obama administration knew about it before dumping their stock. Had any individual investor done that, he’d be looking at a criminal probe from the SEC.

Ironically, just an hour or so earlier, Yahoo noted that GM was “restoring trust“:

Trust us. We’re here to help you lose billions of dollars in a stock dump.

Mark Boabaca on June 30, 2014 at 4:32 PM

Hmmm, wonder if my ’99 TranAm will end up in the recall. When my ignition switch wires snapped making my car useless, it was stopped in a parking spot. Hearing all the horror stories of injuries and death, I now realize how very lucky I was it happened in that exact place. AAA membership paid for the towing and despite the expensive repair bill, just inconvenience, not injury or body damage.

deepdiver on June 30, 2014 at 4:51 PM

The most competent, ethical and transparent administration couldn’t find any problems with GM vehicles when they took ownership in 2009. But they were breathing down Toyota’s neck 24×7 for a sticky accelerator, which was total BS. The government finally found defective floor mats that had to be recalled. Thank goodness those floor mats were replaced while the crap ignition switch went unnoticed killing hundreds of people.

edrebber on June 30, 2014 at 4:53 PM

Remember “GM is alive and BinLaden is dead!”

BTW, “AQ is decimated and on it’s heels!”

GarandFan on June 30, 2014 at 5:00 PM

GM is dead, AQ is alive. Shoulda let ‘em go belly up the first time around. This is worse than those restaurant owner who croaked after hugging dear leader.

Kissmygrits on June 30, 2014 at 5:02 PM

sounds like a RICO case with insider trading implications to me

DanMan on June 30, 2014 at 5:08 PM

Remember, good old UNION workers benefited from the bailout, it is time for them to be responsible for paying for the problems.

KenInIL on June 30, 2014 at 5:18 PM

This puts GM over the 28-million mark for cars recalled on a global basis in 2014, and over 26 million domestic…

A new place of employment for the VA appointment schedulers about to lose their jobs.

RJL on June 30, 2014 at 5:28 PM

Suddenly, my Yugo doesn’t look so bad.

formwiz on June 30, 2014 at 6:06 PM

Goodness grace, might as well get out of the car business alltogether, GM, so far you’ve recalled your entire production these past 2 and 1/2 decades…well, not that it affects your bottom linemuch, it, it’s the tax paying suckerz who have been picking up ur tabs lately…

jimver on June 30, 2014 at 8:54 PM

Goodness grace, might as well get out of the car business alltogether, GM, so far you’ve recalled your entire production these past 2 and 1/2 decades…well, not that it affects your bottom linemuch, it, it’s the tax paying suckerz who have been picking up ur tabs lately…

jimver on June 30, 2014 at 8:54 PM

It’s been said that because of the greedy UAW, General Motors is really a health insurance and retirement fund company that only manufactures automobiles on the side.

slickwillie2001 on June 30, 2014 at 10:40 PM

What are the chances of fatalities resulting from bad ignition-switch recall fixes? At this quantity, high enough for further law-suits, I venture.

Clearly, GM, like its cars, has a “corrosive culture”.

virgo on July 1, 2014 at 12:33 AM