General Motors Company (GM) recalls almost 7 million vehicles
General Motors Company (NYSE:GM) has recalled almost 7 million vehicles this year so far. This is almost as many cars and trucks as it recalled in the U.S. over the last four years combined.
The 7 million figure is across Canada and Mexico along with cars and trucks exported outside of North America that need to be recalled.
The latest recall was on Monday when GM announced it was recalling 1.3 million vehicles in the U.S. to fix a problem with power steering.
GM said it would take a $750 million charge against earnings in the first 3 months of the year to cover the repair costs, which is up from an earlier estimate of $300 million.
This is GM’s largest recall of all time. In 2010, GM recalled 4 million vehicles in the U.S.
The reason why GM is facing controversy is because it took 10 years between the time that the problem was discovered and now to address the problems.
Many GM vehicles have a flawed switch, which could turn off the car while driving. This issue led to 13 deaths.
GM CEO Mary Barra met with some of the families of people that were killed in the accidents. Barra will be facing two days of testimony in front of House and Senate panels today and tomorrow.