GM Offers $500 Discount to Owners of Recalled Cars


  • 2007 Pontiac G5 Picture

    2007 Pontiac G5 Picture

    GM is offering a $500 cash allowance and loaner vehicles to customers affected by the defective ignition-switch recall. | March 13, 2014

Just the Facts:
  • General Motors is offering a $500 cash allowance toward the purchase or lease of a new 2013-'15 Chevrolet, Buick, Cadillac or GMC vehicle to nearly 1.4 million U.S. owners of cars recalled for a defective ignition switch.
  • "We have been very clear in our message to U.S. dealers that this allowance is not a sales tool and it is only to be used to help customers in need of assistance," wrote Alan Adler, a GM spokesman, in a message to Edmunds on Wednesday.
  • GM dealers have also been asked by the company to provide a rental or loaner vehicle to owners of the recalled cars to "minimize inconveniences they could experience until the recall repairs are made to their vehicles."

DETROIT General Motors is offering a $500 cash allowance toward the purchase or lease of a new 2013-'15 Chevrolet, Buick, Cadillac or GMC vehicle to nearly 1.4 million U.S. owners of cars recalled for a defective ignition switch.

"We have been very clear in our message to U.S. dealers that this allowance is not a sales tool and it is only to be used to help customers in need of assistance," wrote Alan Adler, a GM spokesman, in a message to Edmunds on Wednesday. "Neither GM, nor its dealers will market or solicit owners using this allowance."

The cash allowance is effective through April 30.

"This special cash allowance must be passed on to the eligible customer at the time of the transaction and is in addition to other national and regional offers," according to a GM notice to dealers posted Wednesday on the National Highway Traffic Safety Administration Web site. "The special cash allowance is not transferable and is intended to assist those customers who are unhappy and may want to trade out of their vehicle or buy a new GM product."

Customers will also be reimbursed for prior ignition switch repairs, the automaker said.
GM said once customers are notified that parts are available, they will be requested to contact their dealership to make an appointment and can discuss "courtesy transportation" at that time.

GM dealers have been asked by the company to provide a rental or loaner vehicle to owners of the recalled cars to "minimize inconveniences they could experience until the recall repairs are made to their vehicles."

The recall involves the 2005-'07 Chevrolet Cobalt, 2006-'07 Chevrolet HHR and Pontiac Solstice, 2007 Pontiac G5 and Saturn Sky and 2003-'07 Saturn Ion. The safety defect concerns a condition in which the vehicle's ignition switch may unintentionally move from the "run" position to the "accessory" or "off" position, resulting in a loss of power.

The defect could cause the airbags not to be deployed in a crash. The ignition switch will be replaced in the affected vehicles.

Recall notices are going out to customers this week. GM said it expects the first parts to be available beginning in April, with parts availability "improving as time goes on."

GM faces a Congressional investigation and U.S. Justice Department probe into its handling of the recall, which has been linked to 12 deaths. GM previously listed 13 related deaths, but has since revised the total to 12, saying it double-counted one death.

Regarding the Congressional investigations, Adler wrote: "We are fully cooperating with NHTSA and will do so with the Congress, too.  We welcome the opportunity to help both parties have a full understanding of the facts."

Edmunds says: Some important information for consumers wondering what their next steps should be in this GM recall.

ADVERTISEMENT
ADVERTISEMENT

Marketplace

up2drive

Get Pre-Approved for a Loan


Car.com

Credit Problems?
We can help you get Financing!

ADVERTISEMENT