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GM recalls another 2.4M vehicles

GM recalls another 2.4M vehicles

GENERAL MOTORS:GM said the latest affected vehicles are covered by four recalls, raising the number of U.S. recalls this year to 29 Photo: Reuters

By Ben Klayman

DETROIT (Reuters) – General Motors Co said on Tuesday it is recalling another 2.42 million vehicles in the United States, raising the number of vehicles it has recalled so far this year to more than 15 million.

The No. 1 U.S. automaker also said it is doubling the charge it expects to take in the second quarter to about $400 million, mostly for recall-related repairs. GM did not immediately indicate whether vehicles outside the U.S. market were affected.

The Detroit company said the latest affected vehicles are covered by four recalls, raising the number of U.S. recalls this year to 29. That includes the high-profile recall of 2.6 million vehicles to replace defective ignition switches linked to at least 13 deaths.

In the first quarter, GM took a charge of $1.3 billion, mostly related to the ignition switch recall.

The latest actions cover possible faulty seat belts, transmissions, air bags and fire issues.

GM said there have been no fatalities associated with the latest recalls.

The actions affect the Buick Enclave, Chevrolet Traverse and GMC Acadia full-size crossover vehicles; older-generation Chevy Malibu and Pontiac G6 mid-sized sedans; and newer versions of the Cadillac Escalade SUV and heavy-duty Chevy Silverado and GMC Sierra full-size pickup trucks.

Last week, GM announced five recalls covering almost 3 million vehicles globally and said it would take a second-quarter charge of about $200 million. It also was fined by the U.S. National Highway Traffic Safety Administration a record $35 million for its handling of the defective ignition switch.

GM is under investigation by the U.S. Department of Justice, Congress, the U.S. Securities and Exchange Commission and several states for its handling of the faulty ignition switch, which engineers first discovered in 2001. GM has been criticized for failing to detect the faulty part and for not recalling the vehicles earlier.

The automaker expects to complete an internal probe of its handling of the issue within the next two weeks.

The largest of the four new recalls announced on Tuesday covers almost 1.4 million full-size crossovers from model years 2009 through 2014 to replace potential defective seat belts. GM has told dealers to stop selling the newer models until they are repaired.

The other large recall covers almost 1.1 million older-generation mid-sized sedans with 4-speed automatic transmissions where a shift cable could wear out. GM said it is aware of 18 crashes and one injury related to this issue.

GM also put a stop-sale order on the 2015 Cadillac Escalade and Escalade ESV full-size SUVs, recalling about 1,400 vehicles because the passenger side air bags may not deploy properly in an accident. The company said it has emailed the 224 customers who had taken delivery of the vehicles, telling them not to let passengers sit in the front passenger seat until the repair has been made.

The company also recalled 58 heavy-duty versions of its 2015 full-size Chevy and GMC pickup trucks for potential fire issues. It said no crashes or injuries have been reported associated with this issue.

GM shares were down 1.8 percent at $33.63 on Tuesday afternoon on the New York Stock Exchange.

(Reporting by Ben Klayman in Detroit; editing by Matthew Lewis)

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