GM Offers $500 Off Next Purchase for Owners of Ignition Recall Cars

Cobalt_MFR

Following the recall of 1.37 million Chevrolet, Pontiac and Saturn compact cars and roadsters over a faulty ignition switch, GM announced it will offer $500 off the purchase or lease of any new car to affected owners. But it's not advertising the rebate or telling dealers to promote it. The program runs through April 30.

More on the GM Ignition Recall

The February 2014 recall affects all model years of the Saturn Ion, plus the 2005-2007 Chevrolet Cobalt and Pontiac G5 compacts. The 2006-07 Chevrolet HHR hatchback and 2006-07 Pontiac Solstice and Saturn Sky roadsters have also been affected by the recall. The recall involves a faulty ignition switch that may slip into the Accessory or Off position and disarm the airbags.

The Detroit News reports GM repurchased at least 13 Chevrolet Cobalts in 2005 and 2006 after consumers reported problems. The automaker will not repurchase any vehicles now, but owners will receive $500 off the purchase or lease of any new 2013, 2014 or 2015 Buick, Cadillac, Chevrolet or GMC vehicle, which would be in addition to the affected car's trade-in value.

The ignition issue has been linked to 31 crashes and 12 fatalities when airbags did not deploy, but court documents from 2013 show that GM knew about the issue as early as 2004. The National Highway Traffic Safety Administration and a congressional committee have opened investigations, and federal investigators today launched a criminal probe.

"Everything would be done individually," GM spokesman Alan Adler told us of the $500 deal. "The dealers are not pushing this on them, and they've been told not to do that."

Adler then sent us an official statement from GM: "In keeping with our commitment to help customers involved in this recall, a special $500 cash allowance is available to purchase or lease a new GM vehicle. We have been very clear in our message to dealers that this allowance is not a sales tool and it is only to be used to help customers in need of assistance. Neither GM nor its dealers will market or solicit owners using this allowance."

GM expects replacement parts to be available this April, according to the Detroit News. In the meantime, the automaker will furnish loaner or rental cars to affected owners and tow any affected cars to dealerships if owners feel they're unsafe to drive.

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Editor’s note: This story has been updated on March 13 to reflect GM lowering the number of deaths tied to the recall to 12

Comments 

JoJo

So glad my family hasn't purchased any GM vehicles since 1982. This latest incident only reminds me of the numerous times GM screwed some of my family members out of warranty work. I should probably thank GM otherwise my family would likely never known how far superior Subaru, Toyota, and Acura's are.

Derp

So....if your 2006 Chevy Cobalt is listed in the Blue Book at a value of $4500....Chevy is willing to give you $500 trade in value? Yea, that sounds fair....not.

Name

This sounds like an ill-reasoned publicity stunt. I'm not sure how many customers this will "help."

How about they agree to pay all products liability claims as a result of the faulty ignition switch instead of hiding behind their bankruptcy filing? That would actually help those who were injured or killed.

Derp,

No, it's $500 toward the purchase of a new car on top of whatever trade-in value your old car has.

Kelsey M

J

This can be look at 2 very negative way.
a) We did not kill you the first time, so here is $500 to lure you in for the second time.
b) Your life only worths $500 in our eyes.

This is definitely a very poor PR move.

Tim

I have a 2007 Saturn Sky. I called Cevrolet dealer 2 weeks ago and gave the my VIN. They said my VIN wasn't part of the recall. Is it only certain VINs in that model year? Didn't all cars in those recall years of that model use same ignition switch? Or am I being given bogus info by dealer?

Card13

Name,

GM clearly told dealers not to advertise this incentive, so I think they're doing the opposite of wanting publicity. Advertising heavily would draw more negative attention to the recall. Some people are very uncomfortable driving cars with known safety concerns (hence the offering of loaner vehicles) and some would rather just get rid of the car for an unaffected model. This helps them do that

Lance

Yeah, that's real nice of GM. They will offer you thousands less on your trade because it is tainted and profit from a new car sale. Then put a new ignition in the trade-in and resell it for thousands more because it's "fixed". Win-win for GM, lose-lose for it's customers. Meanwhile, they will hide behind the veil of bankruptcy to not pay for the deaths, injuries and loss of resale value.

Where is the resident GM apologist when GM needs one?

TH

Hah... 500$ survival benefit for those who managed to remain alive for the past 11 years with a faulty car, and even that, you're entitled to only if you buy another NEW GM car??? Do they really think that customers are STUPID??? Incredible

Robert Swackhamer

Ok, so GM has issued a recall for over 1 million cars because the ignition has just shut off and caused crashes ( 12 resulting in deaths ). Our Saturn Ion is one of the cars affected. The recall announcement said GM is going to provide a rental car until they can fix the ignitions. Not true, per service at Champion Chevy in Howell, MI, no rental car unless your car's ignition is already acting up, so just keep driving it.

Tim:

Every VIN in the listed model years is affected. Try calling GM's customer care line for Saturn owners at 800-553-6000 and explaining your situation.

Robert:

We reached out to GM, and they said every dealer should have a letter that outlines the loaner program. GM furnished the letter, and we reviewed it. The automaker will reimburse dealers for the program, so it shouldn't cost dealers anything to make it happen.

We called two local Chevrolet dealerships and service representatives at both dealerships directed us to their loaner-car programs, both sourced through nearby rental-car companies.

Try calling GM's customer care line for Saturn owners at 800-553-6000 and explaining your situation.

More info is here: http://blogs.cars.com/kickingtires/2014/03/gm-ignition-switch-recall-what-owners-need-to-know.html

Kelsey M

J

Gm clearly stated in their customer site that they did not publish the VIN info to dealer. Basically any VIN within those models and model years should be covered.

Michael franco

My 2007 cobalt never gave me a problem I took it in to get the switch replaced within 1 day the car shutdown a warning light said no power steering then the gas gauges said no fuel then it shut down. The repair people said it has another problem electric. There trying to screw me out of more money.

GM definitely told dealers never to advertise this incentive, therefore i think they're doing the other of looking publicity.

Avenger 2

In the trunk, if the battery terminals are not making adequate connection, the ignition defects happen. It has occurred several times in my 2006 cobalt and each time--back to basics--I pop the trunk lid, clean the battery terminals, and the problem goes away.

Skip Bradley

I bought an HHR for my daughter and it has had total electrical failure on 3 occasions while on the freeway, she was almost hit several times trying to move to the shoulder. She is scared to drive the car now. She called the dealer in Austin TX, and asked about the loaner car program and they literally laughed at her and told her to drive it or not it was her choice and she would just have to wait for the parts. I think the Fed. Gov. needs to step in on this and make GM either furnish a loaner or reimburse the owners for the car.

Skip Bradley

"In the meantime, the automaker will furnish loaner or rental cars to affected owners and tow any affected cars to dealerships if owners feel they're unsafe to drive."

How do you make the dealer abide by the above GM quote, they refuse or just laugh at you????

Cass

I owe $ still on my Grand prix that I just got a recall letter on today. I am trying to buy a house I don't need this right now at all. Will GM pay off what I still owe on the car because my car shuts off on me all the time?

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