Business

GM to offer loaner cars, cash to small-car owners

DETROIT — General Motors is offering free loaner cars and $500 toward a new GM vehicle to more than a million owners of compact cars that are being recalled for a deadly ignition switch defect.

But the owners have to ask in order to get the benefits.

Advertisement

The offers, disclosed in a document posted Wednesday on the National Highway Traffic Safety Administration’s website, are effective immediately. Owners will be able to use the loaner cars until parts arrive at dealerships to replace the faulty switches. They are expected around April 7, GM said.

The $500 cash allowance offer runs through April 30.

GM last month announced the recall of 1.6 million older small cars worldwide because faulty ignitions can shut off engines unexpectedly. If the engines shut off, drivers can lose power steering and power brakes, and the air bags may not inflate if there’s a crash.

GM now counts 12 people as having died in crashes linked to the problem. The company said Wednesday that one victim had been double-counted.

GM is facing a Department of Justice investigation, as well as investigations from two congressional committees and federal safety regulators over its handling of the recall. The company has admitted it knew about the problem a decade ago.

Advertisement

The loaner-rebate program is part of GM’s damage control efforts. Shares of GM have fallen 7.3 percent this week, including 0.9 percent Wednesday to $34.86.

Associated Press

Loading comments...
You're reading  1 of 5 free articles.
Get UNLIMITED access for only 99¢ per week Subscribe Now >
You're reading1 of 5 free articles.Keep scrolling to see more articles recomended for you Subscribe now
We hope you've enjoyed your 5 free articles.
Continue reading by subscribing to Globe.com for just 99¢.
 Already a member? Log in Home
Subscriber Log In

We hope you've enjoyed your 5 free articles'

Stay informed with unlimited access to Boston’s trusted news source.

  • High-quality journalism from the region’s largest newsroom
  • Convenient access across all of your devices
  • Today’s Headlines daily newsletter
  • Subscriber-only access to exclusive offers, events, contests, eBooks, and more
  • Less than 25¢ a week
Marketing image of BostonGlobe.com
Marketing image of BostonGlobe.com
Already a subscriber?
Your city. Your stories. Your Globe.
Yours FREE for two weeks.
Enjoy free unlimited access to Globe.com for the next two weeks.
Limited time only - No credit card required!
BostonGlobe.com complimentary digital access has been provided to you, without a subscription, for free starting today and ending in 14 days. After the free trial period, your free BostonGlobe.com digital access will stop immediately unless you sign up for BostonGlobe.com digital subscription. Current print and digital subscribers are not eligible for the free trial.
Thanks & Welcome to Globe.com
You now have unlimited access for the next two weeks.
BostonGlobe.com complimentary digital access has been provided to you, without a subscription, for free starting today and ending in 14 days. After the free trial period, your free BostonGlobe.com digital access will stop immediately unless you sign up for BostonGlobe.com digital subscription. Current print and digital subscribers are not eligible for the free trial.