General Motors 2015 Annual Report Download - page 33

Table of Contents
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Balance at January 1 $ 2,729
$ 761
Additions 781
2,717
Payments (1,319)
(1,618)
Adjustments to pre-existing warranties 301
869
Balance at December 31 $ 2,492
$ 2,729
We recorded recall-related charges of $1.1 billion in the year ended December 31, 2015 including adjustments to prior periods of $0.3 billion. Adjustments
to prior periods relate to changes in estimated costs based on new information including claims emergence and development patterns. There were
approximately 12 million vehicles subject to recalls announced in the year ended December 31, 2015.
In the year ended December 31, 2014 we experienced a significant increase in the number of vehicles subject to recall in North America. In the year ended
December 31, 2014 we recorded recall-related charges of $3.6 billion including adjustments to prior periods of $0.9 billion. Adjustments to prior periods in
the three months ended June 30, 2014 included a change in estimate for previously sold vehicles of $0.9 billion partially offset by adjustments of $0.2
billion for courtesy transportation and repair costs. There were approximately 36 million vehicles subject to recalls announced in the year ended December
31, 2014 including approximately 10 million vehicles subject to multiple recalls.
The following table summarizes the estimated costs and number of vehicles subject to recalls announced in the year ended December 31, 2014 (vehicles in
millions and dollars in billions):
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Ignition switch
Certain Chevrolet, Pontiac & Saturn (2003-2011)
2.6
$ 0.1
Ignition lock cylinders
Certain Chevrolet, Pontiac & Saturn (2003-2011)
(a)
0.3
Electronic power steering
Certain Chevrolet, Pontiac & Saturn (2003-2010)
1.9
0.3
Side mounted airbag connector
Certain Chevrolet, Buick, GMC & Saturn (2008-2013)
1.3
0.2
Brake lamp wiring harness
Certain Chevrolet, Pontiac & Saturn (2004-2012)
2.7
0.1
Front safety lap belt cables
Certain Chevrolet, Buick, GMC & Saturn (2009-2014)
1.5
0.1
Shift cable
Certain Chevrolet, Cadillac, Pontiac & Saturn (2004-2014)
1.4
0.2
Ignition keys
Certain Chevrolet, Buick, Cadillac, Oldsmobile & Pontiac (1997-2014)
12.1
0.3
Courtesy transportation and various recalls(b)
Various
12.9
0.8
36.4
$ 2.4
________
(a) Vehicles affected by this Repair issue are included in the 2.6 million vehicles subject to the ignition switch repair.
(b) Charges recorded for 7.7 million vehicles subject to recalls in the six months ended December 31, 2014 were comprehended in the June 30, 2014 catch-up adjustment of $0.9
billion associated with a change in estimate for previously sold vehicles.
We notified customers affected by the Ignition Switch Recalls announced in the three months ended March 31, 2014 to schedule an appointment with their
dealers as replacement parts are available. We began repairing vehicles in early April 2014 using parts that have undergone end-of-line quality inspection for
performance of six critical operating parameters. We have produced sufficient parts to have the ability to repair all vehicles impacted by the ignition switch
and ignition lock cylinder recalls. Through December 31, 2015 we had repaired approximately 70% of the 2.6 million vehicles initially subject to those
ignition switch and ignition lock cylinder recalls and continue to actively engage customers and service vehicles affected.
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