GM Recalls 7.6 Mln Vehicles In The U.S.

(RTTNews) - General Motors (GM) said Monday it will conduct six new safety recalls in the U.S. involving about 7.6 million vehicles due mainly to ignition key problems, and raised related charges it would incur in the second quarter by $500 million.

The recall spans vehicles from the 1997 to 2014 model years, marked by seven crashes and three fatalities, GM said. Vehicles impacted in the recall include Chevrolet Malibus from 1997 to 2005 and Cadillac CTS cars from the 2003 to 2014 model years.

Some of the fatal crashes occurred in older model full-size sedans, but GM said there is no conclusive evidence that inadvertent ignition key rotation caused those crashes. GM did not say how it would fix the latest batch of switches, but asked owners to remove all items, including the fob, from key rings, leaving only the ignition key.

"We undertook what I believe is the most comprehensive safety review in the history of our company because nothing is more important than the safety of our customers," said GM Chief Executive Mary Barra.

The latest recalls worsens GM's safety crisis. The recalls also have turned out to be costly for the automaker, with write-downs expected to total $2.5 billion this year.

GM has recalled 29 million vehicles this year, due largely to defective ignition switches. The automaker faces multiple probes for its slowness in calling back about small cars with ignition issues linked to at least 13 deaths.

Earlier on Monday, GM said it is ready to pay as much as it takes to compensate victims in accidents caused by faulty ignition switches installed in about 2.6 million Chevrolet Cobalts, Saturn Ions and other cars.

Ken Feinberg, an expert hired by the auto giant to oversee the compensation fund, said GM has not placed any limit on the total amount he can pay to the victims or their relatives, if they can prove that GM's ignition switches were at fault for non-deployment of airbags.

GM would pay compensation ranging from $20,000 to several million dollars to anyone i.e, driver, passenger, pedestrian or occupant of another vehicle injured in a crash due to faulty ignition switches.

GM stock is trading at $36.26, down $0.36 or 0.98%, on a volume of 15.7 million shares on the NYSE.