General Motors is recalling 1.5 million more vehicles in the US, will take a $300 million charge

Article by Andrew Christian, on March 19, 2014

General Motors is issuing three more recalls covering around 1.5 million vehicles in the United States and 1.76 million units around the world. The first recall pertains to 303,000 units of Chevrolet Express and GMC Savana full-size vans (MY 2009-2014) in the US. The recall is aimed at reworking the material used in the instrument panels to comply with US crash standards meant to protect unbelted passengers.

The carmaker has halted delivery of the vans until “the solution has been completed and parts are available.” The second recall pertains to 63,900 units of the Cadillac XTS full-size luxury sedan (MY 2013-2014). They are being recalled to fix an issue with brake booster corrosion that can result to overheating. GM has knowledge of two vehicle fires linked to the defect, a spokesman said.

The third recall covers 1.18 million units of the Buick Enclave and GMC Acadia (MY 2008-2013), Chevrolet Traverse (MY 2009-2013) and 2008-2010 Saturn Outlook, caused by a possibility of the wiring harness for the seat-mounted side airbags getting pinched, thereby turning on a warning light in the instrument panel. Ignoring the warning “will eventually result in the non-deployment of the side impact restraints,” including side airbags.

The three recalls come as GM remains fresh from recalling 1.6 million vehicles over faulty ignition switch. The carmaker is currently under intense pressure from the public over its supposed slow response to the defect. GM chief executive Mary Barra said in a statement that she had asked her executives to give added attention to their pending reviews of GM products, "bring them forward and resolve them quickly."

GM said the three new recalls, along with the ignition switch recall, will have the carmaker take a $300-million charge on its earnings in the first quarter to cover the cost of repairs. The recall announcement “underscores the focus we're putting on the safety and peace of mind of our customers," Barra said in the statement.

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