GM Motors Safety Recall
Published Date: 21st May 2014
US car maker General Motors (GM) has just announced it will recall 2.4 million cars in the US for safety reasons.
This will take the total number of cars GM has recalled to over 13 million this year in the US - more than the car giant sold in 2013.
This recent move covers the possibility of faulty seat belts, transmissions, and even air bags, and even includes some fire safety concerns.
Zero fatalities have been associated with this recall as of yet.
A majority of the vehicles affected by this recall were cars built between 2004 and 2010, although a small number of new cars and trucks have also been included in the recall.
As far as we know, no cars here in the UK have been affected by this safety recall.
Pressure will be mounting against GM, as they have already been recently fined by the US Government for safety issues on its cars. The company has also been under intense pressure recently from regulators to improve its safety standards.
The recent fine stood at $35m (£21m) for failing to address different defects which have been linked to 13 fatalities.
This was the maximum fine allowed by US law and it was the highest civil penalty ever actioned as a result of a vehicle recall investigation.
The recalls have already cost General Motors $1.3bn in the quarter of the year and it is now estimated that it will cost the Carmaker around $400m in the April to May period.
GM expects the internal investigation about the issue will conclude within the next two to three weeks.
Following this news, GM shares were down more than 3%.