NEW YORK (TheStreet) -- General Motors (GM) was falling 1.5% to $36.27 at 10:57 a.m. on Thursday after The National Highway Traffic Safety Administration announce late Wednesday that it had started an investigation into "the timeliness of General Motors' recall of faulty ignition switches to determine whether GM properly followed the legal processes and requirements for reporting recalls," according to USA Today.
Federal law mandates that an automaker inform the NHTSA if it has a safety defect in its vehicles within five business days. GM spokesman Alan Adler said the company would "fully cooperate with the probe."
The GM recall initially covered the 2005-2007 Chevrolet Cobalt and 2007 Pontiac G5 on Feb. 13. On Tuesday, the recall grew to include the 2003-2007 Saturn Ion, 2006-2007 Chevrolet HHR and 2006-2007 Pontiac Solstice. It now encompasses 1.37 million vehicles in the U.S. and 253,519 in Canada and Mexico. There have been 33 crashes and 13 deaths connected to the recall. Eight of the deaths occurred in the Cobalt or Pontiac G5, while five happened in crashes involving the Ion.
GM said vehicle owners would start to receive notices in March and dealers would start replacing ignition switches in April. For now, the NHTSA tells drivers to "use only the ignition key with nothing else on the key ring" when driving and to get the repairs done as soon as possible.
TheStreet Ratings team rates GENERAL MOTORS CO as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: