GM To Take At Least A $1.3 Billion Hit To 1st Quarter Bottom Line Over Ignition Recall

General Motors today said it now expects to take a $1.3 billion charge in the first quarter related to its ignition-switch recall, as it expanded the scope of the recall to fix a problem that has caused some drivers’ keys to fall out of the ignitions while their cars are on.

The amount of the charge increases GM’s March 31 estimate of $750 million by more than 70 percent. In addition to replacing the ignition switches on 2.6 million Chevrolet Cobalts, Saturn Ions and other small cars from the 2003-11 model years, dealerships also will be instructed to install new ignition lock cylinders.

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TheSteve - 4/11/2014 12:42:14 PM

+1 Boost

A "profitable" Detroit success story one day. The next day, not.

MattDarringer - 4/11/2014 6:37:05 PM

+1 Boost

$1.3 billion is not as much as it sounds, unfortunately.