Following its two latest recalls of 3.63 million older model cars for an ignition switch issue and every fifth-generation Camaro ever made for a similar flaw, General Motors expanded its repair cost estimate for recalls in 2014 to $2 billion.
GM has been consistently putting out recall notices for its models in an attempt to show lawmakers it is turning over a new leaf and taking the safety of its products very seriously. It spent $1.3 billion in the first quarter fixing recalled vehicles, and is estimating it will take another $700 million hit this quarter to cover its most recent round of recalls.
The repairs include changing the ignition switches in fifth-generation Camaros, which could be bumped loose by the driver’s knee, and repairing the ignition switch in several Buick, Cadillac and Chevrolet models which may be shaken loose if the key is “carrying extra weight,” or “experiences some jarring event.”
As long as GM continues to clear the decks of any potential safety flaws that may land them in hot water with lawmakers again, its repairs bills will also continue to swell.