GM: Recalls May Last Until Mid-Summer
General Motors is telling Wall Street that a recent spate of recalls may last until mid-summer as the company continues to review unresolved safety issues.
The news comes a day after The Associated Press learned that GM CEO Mary Barra told members of Congress that the company cannot make ignition switches fast enough to keep up with demand in its recall of 2.6 million small cars.
The ignition switch problem has been linked to at least 13 deaths in crashes involving Chevrolet Cobalts and Saturn Ions. Congress and the Justice Department are investigating why GM knew about the switch problem for at least a decade but only started recalling the cars this February.
GM has undertaken a safety review that has resulted in 29 U.S. recalls so far this year covering a total of 13.8 million vehicles, more than five times the number of cars and trucks the company sold in the U.S. last year.
In a note to investors, Barclays analyst Brian Johnson wrote that he met with GM management on Wednesday, and was told by product development chief Mark Reuss that GM continues to review safety data for potential recalls and that recalls could persist into mid-summer. Johnson also wrote that it's possible that cars already subject to one recall could be part of future recalls.