GM: Recalls cost $1.3 billion

General Motors said Thursday that its recall of more than two million of its vehicles is expected to cost $1.3 billion.

The company made the announcement as it said it was adding another fix to its prior recalls of the ignition switch and power steering mechanism of its older models like the Chevrolet Cobalt and Saturn Ion.

GM has come under fire from lawmakers and regulators for allegedly delaying an issue of the recalls on purpose for cars that are in some cases as old as a decade because it did not want to pay for repairs.


The company said the expenses it predicted on Thursday were “primarily for the cost of recall-related repairs announced in the 2014 calendar year to date and related courtesy transportation.”

“This amount includes the $750 million charge previously announced on March 31,” GM said in a news release. “On a preliminary basis, despite the $1.3 billion recall charge, GM currently expects to report solid core operating performance in the first quarter financial results.”

The recalled GM parts have been linked to accidents that have caused 13 deaths since 2005.

GM CEO Mary Barra said during a pair of contentious congressional hearings that she was “deeply sorry” for the losses of drivers of the company’s older cars.

Barra, who is in her first year at the helm of GM, promised lawmakers that she would create a “new GM” that would place a greater priority on safety.

Lawmakers in both parties were skeptical, lambasting Barra’s attempts to separate herself from decisions that were made by prior GM leaders because she is a long-term employee of the company. Barra, who described herself as a “second-generation GM employee” last week, has worked for the Detroit-based automaker for 33 years.