General Motors Cost of Recalls Jumps by Another $400 Million – GM

General Motors (GM) said Tuesday it will recall another 2.42 million vehicles as part of four separate recalls.

GM also said that it now expects to take a charge of approximately $400 million in the second quarter, mostly for recall-related repairs.

According to CNBC’s Phil LeBeau, as of mid-May GM has set aside $1.7 billion in recall related charges.

The automaker’s stock was down 2.04% to $33.55 at 12:53PM EDT on Tuesday.

From GM’s press release:

In a continuing effort to quickly address emerging safety issues, General Motors announced today it is recalling about 2.42 million vehicles in four separate U.S. recalls. The recalls are for:

  • 1,339,355 Buick Enclave, Chevrolet Traverse, GMC Acadia full-size crossovers from the 2009-2014 model years and Saturn Outlooks from 2009-2010 because front safety lap belt cables can fatigue and separate over time. In a crash, a separated cable could increase the risk of injury to front seat passengers.
  • 1,075,102 of the previous generation 4-speed automatic transmission Chevrolet Malibu and from the 2004-2008 model years and Pontiac G6 from the 2005-2008 model years because of a shift cable that could wear out over time, resulting in mismatches of the gear position indicated by the shift lever.
  • 1,402 Cadillac Escalades and Escalade ESVs from the 2015 model year because an insufficiently heated plastic weld that attaches the passenger side air bag to the instrument panel assembly could result in a partial deployment of the air bag in the event of a crash.
  • 58 Chevrolet Silverado HD and GMC Sierra HD full-size pickups from the 2015 model year because retention clips attaching the generator fuse block to the vehicle body can become loose and lead to a potential fire.

There have been no fatalities associated with these recalls.

General Motors has recalled a total of 13.6 million vehicles this year.

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