GM making a new repair in recalled cars
DETROIT - General Motors (GM) announced Thursday that another part needs to be repaired in the 2.2 million older small cars already being recalled for an ignition switch defect.
GM says it will replace ignition lock cylinders on the cars. Right now, drivers can remove the key while the engine is still running, which could lead to a roll-away or crash causing pedestrian or occupant injuries. GM knows of one roll- away crash that occurred in a parking lot and resulted in an injury.
GM also said it expects to take a $1.3 billion charge related to the costs of the recall in the first quarter. This is an increase from the $750 million charge the company announced on March 31. GM's stock price moved higher after the announcement to $33.75.
GM said Thursday that it has suspended two engineers with pay, the first internal disciplinary action taken by the automaker related to the ignition-switch recall.
The move stems from GM's internal investigation of the matter. At congressional hearings last week, lawmakers alleged that at least one company engineer tried to cover up the switch problem. GM CEO Mary Barra promised action against anyone deemed to have acted inappropriately.
In recent testimony before a House Energy and Commerce Committee panel, GM chief executive Mary Barra said the company has "civic responsibilities as well as legal responsibilities," hinting that the automaker is considering victim compensation.