Auto Industry On Pace to Break 2004 Record for Recalled Vehicles
With the recent announcement from General Motors of five new recalls affecting nearly 3 million vehicles, the industry-wide total number of vehicles recalled in 2014 is on pace to break the current record of 31 million vehicles recalled in one year, according to the Financial Post.
Auto Industry Recall Total
Already this year 19.9 million vehicles have been recalled in the U.S. according to NHTSA records. This count includes the most recent batch of recalls announced by GM today as well as nearly 2.6 million vehicles recalled since February with defective ignition switches.Overall, GM has recalled 11.1 million vehicles in 2014.
Last year, a total of 22 million vehicles were recalled; the record year for vehicle recalls was 2004 when a total of 31 million vehicles were recalled. The auto industry is on track to break both of those numbers.
GM Recalls 2.7 Million U.S. Vehicles
As GM continues to deal with the aftermath of its massive ignition recall, today’s 5 new recalls affect a variety of models with problems including brake light failure, brake issues, windshield wiper failure, and defective tie-rods.
The largest of the new recalls affects 2.44 million vehicles with defective brake lamps. Affected models include the 2004-2012 Chevy Malibu, 2004-2007 Chevy Malibu Maxx, 2005-2010 Pontiac G6, and the 2007-2010 Saturn Aura. A technical service bulletin had been issued about the problem in 2008 and a limited recall conducted in 2009.
Response to Recall
The increased pace of vehicle recalls is largely a response to the ignition switch recall. Two congressional panels, the U.S. Justice Department, and safety regulators have all launched investigations into why the automaker delayed recalling the dangerous vehicles even though it was aware of the problems for over a decade. Numerous lawsuits have also been filed on behalf of victims seeking compensation for injuries and deaths caused by the dangerous vehicles.
Internally, GM CEO Mary Barra has ordered an investigation headed by former U.S. Attorney Anton Valukas, restructured the engineering departments, and introduced new safety initiatives. GM has also hired the services of outside attorney Ken Feinberg to help the company with the possibility of establishing a GM compensation fund for victims and their families.
AUTOMOBILE ACCIDENT RESULT
$1.8 MillionExpenses: $20,000.00 | Attorneys Fees: $765,000.00 | Net to Client: $1 Million
AUTOMOBILE ACCIDENT RESULTS
$2 MillionExpenses: $78,475.96 | Attorneys Fees: $850,087.96 | Net to Client: $1,071,436.00
AUTOMOBILE ACCIDENT RESULT
$2.3 MillionExpenses: $200,000.00 | Attorneys Fees: $900,000.00 | Net to Client: $1.2 Million