Massive Ignition Switch Recall Weighs Heavy On GM's Profits

Owners affected by the General Motors ignition switch recall are getting even an better incentive to return to its brands for their next new car. The automaker says that these drivers can now get employee pricing on its models. Previously, GM was only offering them a $500 discount if they bought a new 2013 to 2015 vehicle.

According to GM spokesperson Jim Cain speaking to Autoblog, the company has been offering the incentive to affected owners for about a month. But it purposefully isn't advertising it or disclosing volumes. "We want to give dealers as many tools as they need to satisfy customers," he said. Buyers get employee pricing on 2013 to 2015 models, which is a certain percentage below dealer invoice, and it replaces the previous $500 offer. It will be available throughout the duration of the recall.

According to The Wall Street Journal, the original $500 enticement wasn't enough to bring buyers back to showrooms. Many of the roughly 2.6 million affected vehicles are on their second or third owners, and they might not be able to afford a new car.

GM's recall campaign for the ignition switches began in April. Cain said the effort is going as planned. Delphi is running multiple shifts for replacement parts and may add a second or third production line. The company expects to have a majority of vehicles repaired by October. In the meantime, affected drivers can take advantage of free loaners while their car is serviced.