Better safe than sorry for GM as it recalls another 2.42 million vehicles
US automaker’s reputation has again been hit after recent investigations have uncovered yet another wave of safety-related faults
General Motors has recalled 2.42 million of its vehicles due to fears about safety standards. The company has already been handed a $35m fine for failing to adequately install airbags, gearboxes and seat belts in some of its cars
The American automaker General Motors has decided to recall another 2.42 million vehicles, again owing to mounting safety concerns and pressure from regulators and senior internal sources to improve processes and standards. The decision marks GM’s 29th safety and non-compliance-related recall, which together amount to over 13 million vehicles and $400m in damages through the April May period alone.
The circumstances come a week on from a $35m fine government-issued, which is the maximum allowed by US law and the highest civil penalty on record as a result of a recall investigation. The latest recall relates to airbag, gearbox and seat belt issues, which are together believed to be responsible for 18 crashes and one injury, according to the company.
The decision marks GM’s 29th safety and non-compliance-related recall, which together amount to over 13 million vehicles and $400m
in damages
The company stated briefly that the decision was part of GM’s ‘continuing effort to quickly address emerging safety issues.’ Since her appointment in January, Chief Executive Mary Barra has launched an internal investigation into the misgivings that gave rise to the issues and pledged to overhaul the practices that allowed the faults to go unchecked.
Barra has vowed to restore customer trust in the automaker, beginning first with a thorough analysis of the company’s inability to detect and report safety issues. Since the beginning of the year, Barra has appointed a new Head of Global Safety and launched 35 product investigations to clamp down on any remaining and future issues.
The latest string of recalls, four in total, comes less than a week after the company withdrew 2.7 million cars, and will no doubt come as a crushing blow to the company’s already tattered reputation.
The total number of vehicles recalled so far this year amounts to more than the automaker sold throughout the entirety of last year, and has so far cost the company $1.7bn, near enough wiping out any earnings there may have been for the first half of 2014.
