Tuesday, June 17, 2014

Another 3,000,000 defective GM cars

It's June and time for GM to recall more cars, this time 3,360,000. And it's essentially the same problem: keys that could suddenly turn off engines and deactivate air bags.

This recall bumps its recall-related charges to $700 million in the second quarter, an increase of $300 million from an earlier projection. This brings the total cost of recalls to $2 billion to date this year. Some employees will also feel the cost as GM has fired 15 employees, including a vice president for regulatory affairs and at least three senior corporate lawyers. G.M. has also disciplined five other workers.

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