General Motors granted permission to delay recall of faulty airbags
US car-maker General Motors has been spared a huge potential loss after regulators decided it would not have to recall a high number of air bags, which were originally reported to have been defective.
General Motors Corp
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10:59 18/11/24
GM will be given a further opportunity to prove that the airbags are safe, potentially saving the recall of over 2.5m of its vehicles for a multi-million dollar loss.
Tests are ongoing on the devices made by Takata, and it will be up to GM to prove that older vehicles can be used safely. Airbags are said to become problematic after being used for six years.
GM reluctantly agreed to the recall in May, but afterwards said that its airbags were safer than those linked to 11 deaths in the US. They protested the decision by the regulators and their pressure finally reaped rewards on Tuesday.
The vehicles affected are the Silverado, GMC Sierra pickup and several SUV-type vehicles.
If the recall were to go ahead, it is expected to cost the company around $870m, according to a US securities filing.
Safety experts who investigated the airbags earlier this year found that the ammonium nitrate chemical used by GM can erode the bag on the outside, leading to a larger explosion with shrapnel capable of injuring drivers and passengers.