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GM offering $500 cash allowance to owners of recalled vehicles

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The Saturday Ion was one of six GM models recalled in March 2014, over an ignition issue that caused 13 deaths. (Photo: CNN / General Motors)

DETROIT — General Motors is offering free loaner cars to owners of compact cars that are being recalled for a deadly ignition switch defect. The company also will offer a $500 cash allowance to owners who want to buy or lease a new GM vehicle.

In a release posted Thursday on the National Highway Traffic Safety Administration Web site, GM said the cash offer is good toward any 2013-2015 model year Chevrolet, Buick, GMC or Cadillac.

The notice says that GM will begin around April 7 to make repairs to the recalled vehicles, which include model years 2005-07 Chevy Cobalts; 2007 Pontiac G5s; 2003-07 Saturn Ions; 2006-07 Chevy HHRs; and the 2007 Pontiac Solstice and Saturn Sky.

The loaners will be available until parts arrive to fix the switches. The cash offer runs through April 30.

GM says it isn’t offering to buy the cars back, but the cash offer will be made to people who don’t feel safe driving their cars.

GM is recalling 1.6 million older small cars because faulty ignitions can shut off engines unexpectedly. GM says 12 people have died in crashes linked to the problem.



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