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July 01, 2014

GM recalls 8.4 million more cars due to ignition defect

Embattled US car giant General Motors is recalling another 8.4 million cars - 7.6 million in the US.

They are mostly sedans manufactured between 1997 and 2014 and are being recalled for ignition switch defects. Among the recalled vehicles, GM says it is aware of seven crashes, eight injuries and three fatalities.

GM said it would take a charge of $1.2bn for recall-related repairs - up from the $700m it had previously estimated.

"We undertook what I believe is the most comprehensive safety review in the history of our company because nothing is more important than the safety of our customers," said GM chief executive Mary Barra in a statement."Our customers deserve more than we delivered in these vehicles."

The recalls come on the same day GM announced details of a compensation fund for recall victims.

Deceptive practices

Separately, Orange County in the US state of California revealed it had filed a civil lawsuit against GM last Friday.

The Orange County District Attorney alleged that GM "endangered the public through deception regarding vehicle safety and reliability and gained advantage over its competitors by engaging in unfair business practices".

Kenneth Feinberg - the man GM appointed to deal with compensating those impacted by the recalls - has said that GM did not put a cap on the amount it will pay to victims. Shares in GM barely dipped on news of the additional recalls, falling just 0.55% in the wake of the announcement.

bbc.com

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