GM offers $500 new-car discount to owners affected by recall

General Motors has offered $500 towards the purchase of a new car for current owners who have been affected by the controversial ignition-switch recall.

The company cautions that it is not offering vehicle repurchases in response to the recall, however The Detroit News suggests the company already repurchased at least 13 Chevrolet Cobalts due to reports of the problem in 2005 in 2006. With more than 1.5 million vehicles involved in the recall, a broader buyback program would be unprecedented.

“To assist dealers in helping customers who are involved in this recall that request assistance, we are announcing a special cash allowance in the amount $500 available when these customers purchase or lease a new 2013/ 2014 / 2015 model year Chevrolet, Buick, GMC or Cadillac,” the company wrote in a notice to dealers.

The discount program may mark one of the first moves to help mitigate a looming public-relations disaster, as the company faces separate investigations from the US House, Senate, National Highway Traffic Safety Administration and the Justice Department.

At least 12 deaths have been officially associated on the issue, which can spontaneously shut off the engine and disable the airbags, though separate reports claim more than 50 people may have been killed in accidents caused by the defect.

The investigations primarily focus on why GM knew about the problems as early as 2004 but waited an entire decade before issuing a recall.