4. General Motors Ignition Switch
This happened in 2014.
This was the year that General Motors company and all its stock holders would never want to remember.
The company’s faulty ignition switches came to the limelight when they were associated with around 124 deaths and double the number of injuries. The switches could suddenly shut down the car engine. This disabled brakes, power steering, an air bags.
The company had to recall 30.4 million of its cars across the world.
After effect:
As per the company’s statement, the recall cost it $4.1 billion.
Repair of its cars cost $2.8 billion.
Legal settlement for the injuries and deaths caused cost it $870 million.
Another lawsuit with the Department of Justice cost it $900 million, plus a charge of $874 million as cost for future recalls.
