Posted on June 30, 2014 at 2:00 PM
Monday, Jun 30 at 2:53 PM
Chris Woodyard and James R. Healey, USA TODAY
General Motors announced today it will conduct six new safety recalls in the involving about 7.6 million vehicles in the U.S. from the 1997 to 2014 model years, with most drawing more vehicles into the ignition switch issue.
The latest in an almost daily drumbeat of GM recall announcements was so breathtaking in its scope that it briefly halted trading of the automaker's shares. GM announced it will take a 1.2 billion charge in the second quarter to pay for the cost of the recalls.
The vast majority of the vehicles being recalled in the latest announcement, some 6.8 million in the U.S., involve a single new recall that extends the ignition switch issue to larger GM cars, not just the smaller ones that have been at the center of it so far.
Like the small cars, the new recall involves sedans under various GM brands mostly from the last decade.
Included are the 1997 to 2005 Chevrolet Malibu, 1998 to 2002 Oldsmobile Intrigue, 1999 to 2004 Oldsmobile Alero; 1999 to 2005 Pontiac Grand Am; 2000 to 2005 Pontiac Grand Am; 2000 to 2005 Chevrolet Impala and Monte Carlo and 2004 to 2008 Pontiac Grand Prix.
Under a separate recall of 554,328 vehicle in the U.S. are the 2003 to 2014 Cadillac CTS and 2004 to 2006 Cadillac SRX.
The halt happened at 2:55 p.m. and trading of GM shares resumed shortly after, once the GM recall news and new charge were announced.
Investors also realized that GM might be on the hook for far more, as details of its victims compensation fund were disclosed Monday morning.
Fund administrator Kenneth Feinberg said a number of times that GM has agree to pay, without limit, anyone he believes is entitled to compensation for death or injury in 2.6 million GM small cars, recalled earlier this year.
Feinberg noted that claims can be filed not only by people riding in any seat in the GM cars with the bad switches, but by pedestrians and people in other cars involved in wrecks with those GM cars.
That dramatically expands the universe of people who could get money from the GM-fed fund that Feinberg has sole discretion to run as he sees fit.