Here We Go Again – GM Recalls 7.6 Million More Vehicles


July 10, 2014

In what has become a far too frequent refrain, General Motors is again recalling millions of vehicles worldwide because of faulty ignition switches. This new recall, which covers another 8.1 million vehicles, brings the total number of vehicles recalled by GM to an almost unfathomable 28 million vehicles.

The vehicles covered by this recall are mainly older midsize vehicles. As with the other vehicles recalled by GM this year, the ignition switch for the vehicles can rotate out of the run position under the weight of a ring of keys when the vehicle hits a speed bump or pothole.

When the ignition switch rotates out of position, the driver loses the benefit of power brakes, air bags and power steering. GM said it was aware of three fatalities, eight injuries and seven crashes involving vehicles subject to the most recent recall. However, the vehicle manufacturer denied that it had a conclusive evidence the crashes were caused by the defective ignition switch. There are seven vehicles covered by the recall:

  • Pontiac Grand Prix model years 2004 to 2008
  • Cadillac CTS model years 2003 to 2014
  • Chevrolet Malibu model years 1997 to 2005
  • Pontiac Grand Prix model years 2004 to 2008

The economic impact of the ignition switch recalls is reflected in the Detroit company's announcement that it plans to take a 1.2 billion charge to cover expenses stemming from the recalls. This charge follows a 1.4 billion charge taken during the first quarter to cover recall expenses. After the announcement of the most recent recall, there was a temporary cessation of trading of GM stock. The stock was down 1.2 percent when trading of the stock resumed.

GM has announced a compensation plan for victims which is being coordinated by Kenneth Feinberg according to AP reports. GM CEO Mary Barra told a U.S. House subcommittee that the automaker will have no input in the awards and that there will be no caps on payments. The company has acknowledged that the faulty switches are responsible for at least 54 crashes and 13 fatalities. However, lawmakers and lawyers have suggested that the death toll might approach a hundred with hundreds more suffering injury. If these estimates are correct GM might face millions or even billions of dollars in payouts.

The liability of the company toward defendants who pursue a personal injury or wrongful death lawsuit could include punitive damages because the company allegedly knew about the defective switch for more than a decade but did not recall vehicles until this year.

Put Our Law Firm's Over 30 Years of Experience to Work For You

If you or someone close to you has been injured in a crash caused by a fault ignition switch or other vehicle defect, you might have a right to compensation for your injuries. Our injury attorneys at Montlick and Associates have been representing those who suffer serious injuries throughout all of Georgia and the Southeast for over thirty years, including but not limited to Albany, Athens, Atlanta, Augusta, Columbus, Gainesville, Macon, Marietta, Rome, Roswell, Savannah, Smyrna, Valdosta, Warner Robins and all smaller cities and rural areas in the state. No matter where you are located our attorneys are just a phone call away, and we will even come to you. Call us 24 hours a day/7 days a week for your Free Consultation at 1-800-LAW-NEED (1-800-529-6333). You can also visit us online at www.montlick.com and use our Free Case Evaluation Form or 24-hour Live Online Chat.

Category: Auto Accidents

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