GM Offering $500 Discount to Owners of Recalled Vehicles

Mar 14, 2014 01:19 PM EDT | Matt Mercuro

General Motors is offering $500 cash allowance towards the purchase or lease of a vehicle released for the 2013, 2014, and 2015 model years to approximately 1.4 million U.S. owners of recalled vehicles with defective ignition switches.

The cash allowance will run through April 30.

"We have been very clear in our message to U.S. dealers that this allowance is not a sales tool and it is only to be used to help customers in need of assistance," said Alan Adler, a GM spokesman, to Edmunds this week. "Neither GM, nor its dealers will market or solicit owners using this allowance."

Consumers will be reimbursed for previous switch repairs, according to GM. The automaker said once customers are notified that parts are available, they will be asked to contact their locate dealership to make an appointment to bring their car in for an inspection. They will also be able to discuss "courtesy transportation" as well.

Loaner or rental vehicles will be provided to owners if the recalled vehicles to "minimize inconveniences they could experience until the recall repairs are made to their vehicles."

The recall involves the 2005-'07 Chevrolet Cobalt, 2006-'07 Chevrolet HHR and Pontiac Solstice, 2007 Pontiac G5 and Saturn Sky and 2003-'07 Saturn Ion.

"This special cash allowance must be passed on to the eligible customer at the time of the transaction and is in addition to other national and regional offers," said to a GM notice to dealers posted Wednesday on the National Highway Traffic Safety Administration Web site. "The special cash allowance is not transferable and is intended to assist those customers who are unhappy and may want to trade out of their vehicle or buy a new GM product."

Recall notices will be sent out to consumers this week.

The first parts will be available starting in April, according to GM. Defective ignition switches will be replaced in all affected vehicles, free of charge.

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