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June 30, 2014

GM recalls 7.6 million cars for ignition switches

DETROIT (AP) — General Motors is recalling at least 7.6 million more vehicles dating back to 1997 to fix faulty ignition switches as the company's safety crisis continues to grow.

The latest recalls involve mainly older midsize cars and bring GM's total number of recalls this year to over 28 million.

The company says it is aware of three deaths, eight injuries and seven crashes involving the vehicles recalled on Monday. GM says it has no conclusive evidence that faulty switches caused the crashes.

The company says it expects to take a $1.2 billion charge in the second quarter for recall-related expenses.

It is urging people to remove everything from their key rings until their cars can be repaired.

Trading in GM stock was halted just before 2:30 p.m. Eastern time Monday. At the time it was trading at $36.84, up 23 cents for the day. The stock resumed trading about 30 minutes later, and was down about 1.3 percent to $36.17.

 

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