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GM Recalls Near 13 Million Worldwide Just in Past Year

Image: GM Recalls Near 13 Million Worldwide Just in Past Year

Friday, 16 May 2014 07:54 AM

By Michael Mullins

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A GM recall has been extended on Thursday to include an additional 3 million vehicles – 2.7 million of which are in the U.S. – bringing the total amount of recalled automobiles worldwide over the past year to 12.8 million.

Thursday's General Motors recall primarily affects older models built prior to the company's 2009 bankruptcy with the bulk of the recall stemming from wiring issues in such models as the 2004-2012 Chevrolet Malibu, the 2004-2007 Chevrolet Malibu Maxx, the 2005-2010 Pontiac G6, and the 2007-2010 Saturn Auras, CNN Money reported.

Two injuries and 13 accidents have been attributed to the wiring issues responsible for the recall.

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The auto industry as a whole is on track to set a single-year record for recalls, having recalled 15.4 million vehicles in a little more than four months, The Associated Press reported, with Toyota, Ford, and Chrysler all announcing sizeable recalls of their own this year. The old single-year record for recalls is 30.8 million vehicles in 2004.

As a result of the recall, GM will be taking a $200 million charge in the second quarter of 2014, having taken a $1.3 billion charge in the first quarter of this year for other recalls, USA Today reported.

"The volume and steady drip of recalls at GM are certainly taking their toll on the brand. In the eyes of many, the 'new GM' is looking like the old GM — poor quality," Daniel Hill, president of the public relations and government-affairs consulting firm of Ervin-Hill Strategy, told USA Today.

According to GM's new safety chief, Jeff Boyer, the recall is a sign of the times as automakers are increasingly being proactive in addressing safety concerns so to ward off bad publicity and the protect against fines from government agencies.

"We're not waiting for warranty trends to develop over time," Boyer told the AP. "It's not only about frequency, it has to be about the seriousness of the potential defect as well."

According to Boyer, since being named Vice President of Global Vehicle Safety in March, the automaker has added 35 people to its recall review team.

In addition to the 2.7 million vehicles being recalled in the U.S., approximately 290,000 vehicles were recalled in Canada, Mexico and other countries by GM on Thursday.

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