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GM Knew of Ignition Switch Problem Three Years Earlier
General Motors Co. now says the first internal report about a problem with the faulty ignition switch it recalled last month came in 2001, three years earlier than the company reported earlier and before the first affected cars went into production.
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General Motors Co. now says the first internal report about a problem with the faulty ignition switch it recalled last month came in 2001, three years earlier than the company reported earlier and before the first affected cars went into production.
GM says it opened an engineering inquiry into the problem about 10 years ago but concluded it would cost too much and take too long to fix. The switch supplier, Delphi Automotive plc, redesigned the switch during the 2007 model year. The update eliminated the problem, but Delphi did not advise GM of the improvement.
GM currently is preparing for an April recall of 1.6 million affected vehicles built during the 2003-2007 model years.
Meanwhile, supplier Delphi Automotive plc tells analysts the replacement switch to be used in the recall will cost no more than $5 to make and can be installed in a few minutes.
Separately, the carmaker has authorized its dealers to offer owners of a recalled car a $500 cash allowance that may be applied to lease or buy a new 2013-2015 model GM vehicle.
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