GM Struggling to Complete Eight Separate Recalls
The logistics behind completing eight separate vehicle recalls simultaneously is an enormous task even for an auto giant like General Motors, and customers’ frustrations are beginning to rise as they wait for repairs. A new report from CBS DFW takes a closer look at the challenges of repairing nearly 7 million vehicles and what it means for vehicle owners.
Eight Separate GM Recalls
Since February, GM has recalled about 7 million vehicles with defects ranging from steering defects, transmission oil leaks, faulty airbags and defective drive shafts to the most well-known recall: 2.6 million vehicles with defective ignition switches.
Owners had long complained that their GM lost power, experienced brake failure and steering defects. The older compact cars, including Chevy Cobalts, Saturn Ions, and Pontiac G5s, were finally recalled in February after an internal investigation concluded the problems were the result of ignition keys being bumped out of position.
The automaker estimates it will take six months to manufacture and distribute the parts needed to complete the ignition recall. Part maker Delphi has one production line running seven days a week with plans to add two more lines.
As for the other 4 million vehicles waiting for repairs? No estimate has been given by GM for when those repairs will be completed. Only about 500,000 of those repairs involve adjustments and need no new parts.
From Loaner Cars to a GM Fund
In the aftermath of the massive ignition switch recall, concerns about vehicle safety have been raised by owners, lawyers and senators alike. GM has insisted that if all extra weight is removed from the GM key the vehicles are safe to drive. For owners who still feel uncomfortable driving a recalled vehicle, dealers have been authorized to provide loaner cars until repairs are completed. So far, about 45,000 loaner cars have been issued.
GM has also faced scrutiny from two congressional probes, the Justice Department, federal safety regulators as well as been the subject of numerous lawsuits. The company has hired help from several outside sources including attorney Ken Feinberg. Mr. Feinberg was hired to help the company explore options for creating a GM compensation fund for victims who were injured or killed in crashes involving the recalled vehicles.
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