GM Seeks Aid From NASA, Issues New Ignition-Related Recall

Cameron Aubernon
by Cameron Aubernon

Autoblog reports 2.19 million of the same vehicles under the current General Motors ignition recall are under a new ignition-related recall, as well. The new recall warns of a problem where the key can be removed without the switch moved to the “off” position. According to GM, the automaker is aware of “several hundred” complaints and at least one roll-away accident resulting in injury, and is instructing affected consumers to place their vehicles in park or, in manuals, engage the emergency brake before removing the key from the ignition until repairs are made.

Regarding the original recall, The Detroit News reports has called upon NASA’s Engineering & Safety Center to review whether or not the 2.6 million affected Chevrolets, Pontiacs and Saturns are safe to drive with just the ignition key in position. The agency, which has performed similar reviews in the past, will look over the work performed by the automaker in the latter’s effort to make the affected vehicles safe to drive, as well as review its overall approach to safety concerns.

On the financial front, Automotive News says GM will take a $1.3 billion charge in Q1 2014 for the original recall, 40 percent greater than the $750 million charge originally estimated at the end of last month. The charge — which includes repair costs and loaners for affected owners — comes on the heels of a $400 million charge tied to currency challenges in Venezuela, the total sum of which threatens to knock out most if not all of the automaker’s Q1 2014 earnings set to be announced toward of end of this month.

Meanwhile, The Detroit News reports Michael Carpenter, the CEO of former GM financial arm Ally Financial, says his company will complete its exit from government ownership by Election Day of this year:

The U.S. Treasury is quite happy today. My own view is they will definitely be out before the election and we are close to having Treasury and U.S. government ownership in the rearview mirror.

By the end of trading Thursday, Ally’s IPO netted taxpayers $17.7 billion with a profit of $500 million on the $17.2 billion bailout of the consumer finance company, while the Treasury currently holds 17 percent of its remaining shares after selling 95 million for $25 per share at the opening bell; share price fell 4.4 percent to $23.50 at the closing bell.

In lawsuit news, Automotive News reports GM settled with the families of two Saturn Ion drivers who lost their lives in 2004 when their respective cars’ airbags failed to deploy. The two fatalities were identified by the publication as the earliest of 13 linked to the out-of-spec ignition switch at the root of the current recall crisis. In addition, while one case was settled out-of-court in September of 2007, the second case drew its settlement terms after the automaker filed for bankruptcy in June of 2009, placing the plaintiffs and their lawyer with other unsecured creditors.

The Detroit News reports Cadillac and Buick are at the top of their respective lists for dealer service satisfaction as determined by the J.D. Power & Associates U.S. Customer Service Index Study. Cadillac’s dominance over the luxury brand category comes as former No. 1 Lexus — who held the top spot for five consecutive years — falls to third behind Audi, while Buick leads Volkswagen, GMC, Mini and Chevrolet in the mass-market brand category.

Finally, Autoblog reports the last of eight Corvettes swallowed by the sinkhole that formed inside the National Corvette Museum in Bowling Green, Ky. back in February has been recovered. The 2001 Corvette Mallett Hammer Z06 will need extensive work performed to bring it back to its original state, but not before it joins its brethren in a new exhibit entitled “Great 8” beginning next week. The exhibit will last until the museum’s 20th anniversary in late August, at which point GM will begin restoration work on the eight Corvettes.

Cameron Aubernon
Cameron Aubernon

Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.

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  • 50merc 50merc on Apr 11, 2014

    So now it's over two million cars with ignition switch miseries? Talk about sinkholes! Would someone please take apart a Cobalt switch and, say, a Focus switch and explain how they vary in design?

  • Lorenzo Lorenzo on Apr 11, 2014

    All GM cars of the late '50s to mid-'60s had ignition locks that allowed you to remove the key after putting in auxiliary. You could then start the engine without a key. The owner's manual in my '62 Buick LeSabre made it sound like a feature, not a bug. Regardless of maker, there are only so many cylinder lock mechanisms. I had a '65 Impala when I was in the Navy and a shipmate had bought a Ford Cortina. I asked to drive it around the base, he said no, so I put the impala key in the door and it opened. I put the same key in the ignition and it started up. Funny, his key wouldn't work on the Impala!

    • Firestorm 500 Firestorm 500 on Apr 11, 2014

      My Dad had a '73 F-100 and my mother had a '71 Lincoln Mark III. He told me to go out and move the truck one time, which was sitting behind the Mark. I grabbed Mother's keys and unlocked and moved the truck before I realized I had the "wrong" set.

  • FreedMike Meanwhile...Tesla's market share and YTD sales continue to decline, in an EV market that just set yet another quarterly sales record. Earth to Musk: stop with the political blather, stop with the pie-in-the-sky product promises, and start figuring out how to do a better job growing your business with good solid product that people want. Instead of a $30,000 self driving taxi that depends on all kinds of tech that isn't anywhere near ready for prime time, how about a $30,000 basic EV that depends on tech you already perfected? That will build your business; showing up at Trump rallies won't.
  • 28-Cars-Later "Here in Washington state they want to pass a law dictating what tires you can buy or not." Uh, waht?
  • Tassos NEVER. All season tires are perfectly adequate here in the Snowbelt MI. EVEN if none of my cars have FWD or AWD or 4WD but the most challenging of all, RWD, as all REAL cars should.
  • Gray Here in Washington state they want to pass a law dictating what tires you can buy or not. They want to push economy tires in a northern state full of rain and snow. Everything in my driveway wears all terrains. I'm not giving that up for an up to 3 percent difference.
  • 1995 SC I remember when Elon could do no wrong. Then we learned his politics and he can now do no right. And we is SpaceX always left out of his list of companies?
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