GM Now Thinks Recall Will Cost At Least $1.3 Billion

Illustration for article titled GM Now Thinks Recall Will Cost At Least $1.3 Billion

The cost of the vast GM ignition switch recall got much bigger today as the company said it now expects to take a $1.3 billion charge in the first quarter of 2014, up from the $750 million it previously reported.


GM said this afternoon also said it would now replace the ignition cylinder in the cars already recalled for the defective switch connected to at least a dozen deaths.

The cylinders can allow removal of the ignition key while the engine is running, leading to a possible rollaway, crash and occupant or pedestrian injuries.


The company says it's received "several hundred complaints of keys coming out of ignitions," including one claim of an rollaway injury crash, but no fatalities.

This has been a particularly busy week for the GM recall. Earlier today, news broke that two engineers were placed on paid leave in connection with the investigation into the defect. And on Tuesday, the NHTSA told GM to cut the bullshit and answer questions.

Photo: Getty Images

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King Ginger, not writing for Business Insider

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