General Motors Taking $300 Mln Charge
General Motors (GM) announced it would take a $300 million Q1 charge related to its escalating faulty ignition problems, and announced a new series of recalls of 1.5 million more vehicles for a range of other issues.
The automaker said it was recalling the additional vehicles on account of an assortment of potential seat air bag, brake booster wiring and instrument panel problems.
GM is already in the midst of recalling an estimated 1.3 million vehicles for faulty ignition wiring that allegedly has been linked to 12 deaths. GM is under both criminal and civil investigations for the ignition problem, which the automaker acknowledged it first became aware of as long ago as 2001.
The new recalls follow CEO Mary Barra’s request for a comprehensive internal safety review at GM.
In mid-day trading, GM shares were up 0.35% to $34.21.