General Motors has announced a recall affecting more than 8 million vehicles worldwide with ignition key problems, including the 1997-2005 Chevrolet Malibu. According to the Wall Street Journal, trading of GM shares was halted briefly after the announcement. The automaker has said it will take a $1.2 billion charge against its second-quarter earnings to cover the recall.
The defect in the 6.8 million U.S. vehicles is being described by GM as “unintended key rotation.” Similar to ignition switch problems that plagued Chevy Cobalts and Saturn Ions, the latest vehicles can experience engine stalls caused by ignition switch defects. GM has said it is aware of eight injuries, seven crashes, and three fatalities linked to the latest recall.
GM has recalled more than 30 million vehicles this year. In February, GM initiated a recall that would be twice expanded to eventually include 2.6 million vehicles. The automaker came under scrutiny after it was learned GM engineers were aware of the defective switches for more than a decade but failed to take action. The company was fined $35 million – the maximum penalty allowed – by the National Highway Traffic Safety Administration (NHTSA) for the delay.
Monday’s recall affects the following makes and models:
A separate recall for the same problem affects the following makes and models:
Thomas J. Henry is representing more than 1,000 GM recall victims across the United States and has been investigating injuries and deaths linked to the recall since day one. The firm launched a nationwide media investigation into the recall in April, which brought forth thousands of affected individuals who had information critical to the investigation – information that the firm has handed over to federal agencies also investigating GM’s sluggish response the recall. As more and more individuals have flocked to Thomas J. Henry for representation, the firm has continued to push GM for a victim settlement fund. The firm has had several talks with GM’s victim compensation expert Ken Feinberg regarding appropriate victim compensation for the thousands affected by a fatal design flaw in ignition switches which left numerous dead and countless others seriously injured.