TIME General Motors

GM Offering $500 to Owners of Recalled Vehicles

2005 Chevrolet Cobalt SS
The 2005 Chevrolet Cobalt SS is displayed on the floor of the North American International Auto Show in Detroit Michigan, in this file photograph taken January 5, 2004. Gregory Shamus—Reuters

General Motors is offering a $500 discount on new or leased cars for the owners of the 1.6 million vehicles the company recalled last month. The announcement comes as federal investigators begin looking into the ignition-related recall linked to 13 deaths

General Motors is offering $500 discounts for owners of the 1.6 million vehicles the company recalled in February. Instead of repurchasing the vehicles, the company is offering to reduce the price of new or leased GM cars.

The Detroit News reports the company will also pay for owners’ towing services, rental, or loaner cars to dealerships. In a March 4 letter to dealers GM said, “To assist dealers in helping customers who are involved in this recall that request assistance, we are announcing a special cash allowance in the amount $500 available when these customers purchase or lease a new 2013/2014/2015 model year Chevrolet, Buick, GMC or Cadillac.”

The 2005-7 Chevy Colbalt, 2007 Pontiac G5, and 2003-2006 Saturn Ion are among the models that were recalled in February due to a faulty ignition switch that moves the key unintentionally. The Detroit Free Press reports the company will also reimburse the cost of previous repairs to ignition switches, though replaced switches are not exempt from the recall.

The announcement comes on the heels of federal investigations into the company’s recall, which they are alleged to have known about for a decade. The National Highway Traffic Safety Administration and the House Committee on Energy and Commerce are examining the company’s response to ignition complaints. The Department of Justice is also investigating the ignition issue, which is reportedly linked to 30 accidents and 13 deaths.

[Detroit News]

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