General Motors announced today that it was recalling another 1.55 million cars for safety issues unrelated to the malfunctioning ignition switches that loom over the company.
It also announced that it would likely take a $300 million charge on its first quarter earnings "primarily for the cost of the repairs for the three safety actions and the previously announced ignition switch recall." A $300 million charge would be almost a third of the company's $913 million in profits in the last quarter.
GM said that two vans, the Chevrolet Express and GMC Savana, were going to be recalled to fix instrument panels, 2013 and 2014 Cadillac XTS's to repair "possible brake booster corrosion," and Buick Enclaves, GMC Arcadias, Chevrolet Travereses, and Saturn Outlooks for the wiring of their airbags.
The new recall announcement comes a week after the carmaker disclosed that employees knew about malfunctioning ignition switches that have been linked to several deaths over the last decade. A month ago GM initiated a 1.6 million car recall to fix the ignition problem in some Saturn, Chevrolet, and Pontiac models.
Today's recall announcement comes amid a massive internal investigation launched by General Motors to look into the ignition issue and federal prosecutors have reportedly started their own probe. "We are conducting an intense review of our internal processes and will have more developments to announce as we move forward," said GM CEO Mary Barra, who only stepped into the CEO role late last year.
General Motors's stock is up slightly today to $34.28, but down almost 17% on the year.
Matthew Zeitlin is a business reporter for BuzzFeed News and is based in New York. Zeitlin reports on Wall Street and big banks.
Contact Matthew Zeitlin at firstname.lastname@example.org.
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