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Innovation

General Motors recalls additional 1.7 million vehicles

General Motors is having a bad month as millions of cars become recalled, a lawsuit and government investigation all take its toll on customer trust.
Written by Charlie Osborne, Contributing Writer on
 
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General Motors has announced the recall of 1.7 million vehicles, doubling the number of cars that were recalled last month.

The automaker issued a recall notice for 1.6 million vehicles in February due to defective ignition switches which could potentially cut out power systems if bumped -- which in turn would cause airbags to malfunction.

However, GM knew about this problem in 2004, and failed to act upon it. As a result, several government agencies are investigating the company, and the automaker is also facing a class action lawsuit.

In the latest recall notice, GM says that a variety of models will be brought in for fixes -- which range from faulty wiring and new airbag problems to overheating brakes.

In total, General Motors has recalled 3.3 million vehicles worldwide since February.

The overall cost is not just to the firm's reputation -- as General Motors has also set aside $300 million to help cover recall expenses.

GM's new CEO Mary Barra has tried to reassure customers and investors, saying in a video posted by the company that "terrible things happened" due to the ignition switch defect and how the problem was handled, but "we will be better because of this tragic situation if we seize the opportunity."

Read on: Wall Street Journal

Image credit: GM

This post was originally published on Smartplanet.com

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