After a hectic 2014, general motors began their 2015 by issuing their three safety recalls:
Three GM Recalls
When stock market was shut down for the New Year’s vacation, the automaker issued call backs. The greatest one involved the ignition design of many SUV and the pickup truck models. Some GM shares were pressured in the year 2014 as the ignition switch problems were the primary cause of accidents that caused over 40 deaths and a recall of many vehicles.
Of the latest recalls that involved 83,572 sport-utility vehicles and pickup trucks, no injuries or crashes were reported. The expectations of GM are that not more than five hundred will be negatively affected by the defect and an ignition lock actuator having an outer diameter exceeding the specifications.
Investor & Consumer Concerns
It was still believed that the issue could spook both the investors and consumers. The ignition system problems were behind a record number of recalls that were made by GM in 2014. This has rebuilt the reputation following the bankruptcy of 2009.
According to the primary recall that was announced on Thursday, an outsized ignition lock actuator can cause the ignition key to be stuck in its start position. In case the vehicle is driven that way and experiences a jarring event, the ignition lock cylinder will be moved into the accessory position and this will affect the engine power, the power steering and the power braking.
Besides, the timing of the key motion into the accessory position in relative to crash sensing could result in airbags not working in some crashes. The problems of the 2014 recall are not yet over. Currently, there is a compensation protocol run by Kenneth Feinberg which is still effective through January. Additionally, there is a possibility of charges from the Justice department. GM paid a $35 million fine to the Department of Transportation and the National Highway Transportation Safety Administration last year.