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GM recalls 2.7M more cars; industry on record pace

TOM KRISHER
AP Auto Writer

DETROIT (AP) — General Motors’ efforts to root out lingering safety problems across its wide range of cars and trucks has produced another big recall — and highlights a sudden shift at GM and throughout the industry toward issuing recalls instead of avoiding them.

The nation’s largest automaker announced a total of five recalls covering 2.7 million vehicles Thursday. The biggest involves 2.4 million midsize cars from model years 2004 to 2012 with brake lights that can fail.

GM acknowledged it knew about the brake light problem as early as 2008. That year it issued what’s known as a technical service bulletin, but that only required dealers to offer to fix the problem if the owner became aware of it. Such bulletins typically cover problems an automaker considers minor, and avoid the larger cost of a recall. But a driver’s safety could be jeopardized by unknowingly operating a car with a defective part.

In announcing the recall, GM said the brake light problem has been tied to 13 accidents and 2 injuries.

GM launched a top-to-bottom safety review after recalling 2.6 million small cars earlier this year for faulty ignition switches. GM knew about that problem for at least a decade, issuing service bulletins years before it started to recall the cars. The switch problem, which can unexpectedly shut down a car’s engine, has been linked to at least 13 deaths and has prompted multiple investigations, including one by the Justice Department.

“These additional recalls underscore how important it is to keep the pressure on GM to make sure the company is being as transparent as possible,” said Sen. Clare McCaskill, D-Missouri, who heads a Senate subcommittee looking into GM’s handling of the ignition switch problem.

The recalls could also add to scrutiny of federal safety regulators, who were criticized for their handling of the ignition switch problem. Documents filed with the National Highway Traffic Safety Administration show that neither the company nor the government sought a recall to fix the brake light issue despite 1,300 consumer complaints and more than 14,000 warranty claims as of February of last year.

The agency said in a statement Thursday that an investigation it opened into the problem last year influenced GM’s decision to recall the cars.

Jeff Boyer, GM’s newly appointed safety chief, said GM now will recall cars as soon as it sees a safety problem. The company, he said, has added 35 safety investigators to its team as it sifts through records looking for cars that should have been recalled earlier.

“We’re not waiting for warranty trends to develop over time,” he said. “It’s not only about frequency, it has to be about seriousness of the potential defect as well.”

GM has now recalled more than 11 million cars and trucks in the U.S. so far this year, close to its annual recall record of 11.8 million set in 2004.

The auto industry also is on track to set a single-year record for U.S. recalls. Companies have recalled 15.4 million vehicles in a little more than four months, according to government records. The old single-year record for recalls is 30.8 million vehicles in 2004. Toyota, Ford, and Chrysler also have announced sizeable recalls this year.

Industrywide, automakers are moving faster to fix problems than they have in the past in a bid to avoid bad publicity and record fines from government agencies.

“All manufacturers are recalibrating their recall programs to go from ‘if in doubt, don’t recall’ to ‘if in doubt, recall,'” said Clarence Ditlow, executive director of the nonprofit Center for Auto Safety.

Earlier this year, the Justice Department made Toyota pay a $1.2 billion penalty and admit to concealing problems with unintended acceleration in its cars and trucks. That fine and the GM investigation — which could bring criminal charges against individuals — have changed the way automakers view recalls.

GM said the recalls announced Thursday also will fix problems with headlamps, power brakes and windshield wipers. The Detroit automaker will take a $200 million charge this quarter, on top of a $1.3 billion charge in the first quarter, mostly to cover the repairs. GM shares fell 1.7 percent to close at $34.36.

The auto industry set the standing recall record in 2004 after U.S. laws were changed requiring them to report more defects to the National Highway Traffic Safety Administration. Experts also blamed the high number on vehicles that rely more heavily on computers, more common parts across each company’s model lineup and more safeguards at litigation-sensitive automakers to catch flaws earlier.

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AP Auto Writer Dee-Ann Durbin contributed to this report.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. 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But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. 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If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. 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