Correspondent, Detroit
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Mar 17, 2014

GM recalls another 1.5 million vehicles, to take $300 million charge

DETROIT (Reuters) – General Motors Co announced three more recalls on Monday, related to airbag deployment and other issues, and said it would take a $300 million charge primarily to cover the costs related to these actions as well as the previous recall for faulty ignition switches.

The No. 1 U.S. automaker, which will take the charge in the first quarter, did not provide a breakdown of how much was related to the ignition-switch recall of more than 1.6 million older-model vehicles that has hurt the company’s reputation since it was announced last month.

Mar 13, 2014

Auto industry files 18 percent more international patents in 2013

FRANKFURT (Reuters) – The car industry’s international patent filings jumped 18 percent in 2013, the World Intellectual Property Organization (WIPO) said on Thursday, in part reflecting a push for new technologies to lower exhaust emissions.

“In line with growing investments in research and development, the automobile industry has seen a sharp increase in international patent filings over the last three years,” WIPO said in a statement.

Mar 13, 2014

GM waited on Ion recall despite awareness of fatal crashes

DETROIT/WASHINGTON, March 12 (Reuters) – General Motors Co
waited more than two weeks to expand a major recall to
include the Saturn Ion and other compact cars, even though its
engineers were aware of four fatalities in crashes involving the
model, GM said in filings published on Wednesday.

In an amended submission to the U.S. National Highway
Traffic Safety Administration, GM also said it had identified an
issue with the ignition switch, the central failing in the
recall of more than 1.6 million cars, in 2001 preproduction
testing on the Ion.

Mar 13, 2014

GM recommends light key rings after recall

DETROIT/WASHINGTON (Reuters) – General Motors Co said on Wednesday that even after the vehicles in its ignition-switch recall are repaired, owners should avoid weighing down their key rings with anything more than the key and fob.

Also on Wednesday, U.S. Senator Claire McCaskill said a Senate subcommittee plans to hold a hearing in early April on GM’s recall last month of more than 1.6 million vehicles with the faulty ignition switches which have been linked to 12 deaths. Most of the affected cars were sold in the United States.

Mar 12, 2014

GM urges drivers stick to sparse key ring even after recall repair

DETROIT/WASHINGTON (Reuters) – General Motors Co (GM.N: Quote, Profile, Research, Stock Buzz) said on Wednesday that even after the vehicles in its ignition-switch recall are repaired, owners should avoid weighing down their key rings with anything more than the key and fob.

Also on Wednesday, U.S. Senator Claire McCaskill said a Senate subcommittee plans to hold a hearing in early April on GM’s recall last month of more than 1.6 million vehicles with the faulty ignition switches which have been linked to 12 deaths. Most of the affected cars were sold in the United States.

Mar 12, 2014

Even after recall repair, GM recommends only key, fob on key ring

DETROIT, March 12 (Reuters) – General Motors Co said
on Wednesday that even after the vehicles in its ignition-switch
recall are repaired, owners should still have only the key and
fob on the key ring.

GM has been telling the owners of the more than 1.6 million
vehicles with the faulty ignition switches linked to 12 deaths
that until the repairs are made only the key should be on the
key ring. That remains largely the case after the fix as well,
according to a document filed with U.S. safety regulators.

Mar 12, 2014
Mar 12, 2014
Mar 11, 2014

Federal prosecutors open criminal probe of GM recall: source

NEW YORK/WASHINGTON/DETROIT (Reuters) – Federal prosecutors are examining whether General Motors is criminally liable for failing to properly disclose problems with some of its vehicles that were linked to 13 deaths and led to a recall last month, according to a source familiar with the investigation.

The New York-based probe is in its early stages, and the source did not elaborate on the legal theory behind the potential criminal liability.

Mar 11, 2014

GM hires law firms it works with to probe recall response

DETROIT, March 10 (Reuters) – General Motors Co on
Monday said it had hired two outside law firms to probe the
company’s response to ignition-switch problems on cars that have
been linked to 13 deaths, but both firms have done business with
GM, raising questions of conflict of interest.

The review will be led by Jenner & Block chairman Anton
“Tony” Valukas, who won wide regard for investigating Lehman
Brothers after the financial services firm collapsed in 2008.
His report alleged that the firm used accounting gimmicks and
had been insolvent for weeks before it filed for bankruptcy.

    • About Ben

      "Ben Klayman is based in Detroit and in April was named leader of the global automotive team for Reuters. Previously, Ben covered the business of sports as well as consumer and retail for three years and led the manufacturing/housing team for four years. He also covered the telecommunications sector for three years. He joined Reuters in Detroit in 1998 to cover autos. Prior to joining Reuters, he worked at a series of daily newspapers in Ohio and Maryland. Ben graduated from Washington University in St. Louis in 1989 with a bachelor's degree in English literature."
      Joined Reuters:
      1998
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