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GM recalls 1 3m vehicles over steering issue

Article By: ,  Financial Analyst
April 1, 2014 12:15 PM

General Motors (GM) has confirmed the recall of more than a million of its cars due to a problem with the steering on the vehicles.

It was announced by GM that 1.3 million vehicles are being recalled due to the electronic steering issue potentially leading to crashes.

GM has informed the National Highway Traffic Safety Administration of its latest recall of US vehicles – with models involved in the recall including the Chevrolet Malibu and HHR – which follows on from previous problems with its cars. GM said drivers could experience a "sudden loss" of the use of electronic power steering.

There have been various issues with GM cars in recent months. It was recently alleged that an engineer from the company ignored GM standards when approving a design change for faulty ignition switches, an issue that has been linked to a dozen deaths so far, BBC News reports.

Manufacturers

Documents handed over by the firm to a US House of Representatives panel also showed that the manufacturer of the defective switch – Delphi Automotive – said the redesigned versions that were signed off for use in the 2008-11 models were still not up to GM's standards.

"An analysis of NHTSA [National Highway Traffic Safety Administration] early warning report data shows that there are 14 fatal crashes in the recalled 2008-2011 vehicles involving a potential problem with an airbag, steering, electrical or unknown component," senior Democrats on the House Energy and Commerce Committee said.

GM chief executive Mary Barra is due to testify to the House about the company's actions on the faulty ignition switches problem later today (April 1st).

"I cannot tell you why it took years for a safety defect to be announced in that program, but I can tell you that we will find out," Ms Barra wrote in previously released prepared testimony.

She added: "When we have answers, we will be fully transparent with you, with our regulators, and with our customers."

The share price of GM was down by almost one per cent in the US yesterday following the news of the 1.3 million cars being recalled by the company over the steering problem.

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