Faulty Ignition Switch Would Have Cost GM Less Than $1 Per Car to Fix, According to Recent Reuters Article

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According to Reuters, Automaker issues second recall this year as CEO testifies in Congress over defect linked to 13 deaths, reports Baron and Budd.

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GM, America’s largest automaker, would have paid less than $1 per car to replace a part that has been linked to 13 accident-related deaths, according to a Reuters report published April 2, 2014 (http://www.reuters.com/article/2014/04/02/us-gm-recall-delphi-idUSBREA3105R20140402). Baron and Budd, along with co-counsel, was one of the first firms to file a lawsuit against GM regarding the vehicles believed to have faulty ignitions. (Galdina Maciel et al. v. General Motors LLC, case number 4:14-cv-01339, in the U.S. District Court for the Northern District of California)

In February, the company recalled 2.6 million vehicles with defective ignitions switches. The malfunction could cause certain GM models to stall or suddenly turn off when bumped, or if the driver has a heavy keychain. The air bag system may also fail during an accident.

According to the same Reuters report, fixing the flawed switch would have cost the company an extra 90 cents per car and about $400,000 in tooling costs. Vehicles affected by that recall include: the Chevrolet Cobalt, Chevrolet HHR, Pontiac Solstice, Pontiac G5, Saturn Ion and the Saturn Sky Vehicle.

And on March 31, just one day before GM CEO Mary Barra testified in Congress about the faulty ignition switches, the company announced its second recall this year – 1.3 million vehicles with unsafe power steering problems. Some of the same models are included in both recalls, according to a April 11, 2014 article from Forbes. (http://www.forbes.com/sites/samanthasharf/2014/04/11/gm-ceo-mary-barra-may-have-known-about-steering-troubles-in-2011/)

If you or someone you know owns a vehicle affected by the recall and has suffered a serious injury, please call the GM ignition recall lawyers at Baron and Budd at 818-839-2320 or visit our website here for more information: http://baronandbudd.com/areas-of-practice/gm-faulty-ignition-recall/

About Baron & Budd, P.C.
With a history of over 35 years “Protecting What’s Right” for individuals, communities, and governmental entities, Baron and Budd is a well-established law firm devoted to making a positive difference. With offices in Dallas, Austin, Los Angeles and Baton Rouge, Baron and Budd is able to take on complicated and expensive cases within the realms of dangerous drugs and medical devices, asbestos-related illnesses, consumer fraud, water contamination, the Gulf oil spill and fraudulent financial practices.

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Amanda Billo
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