UPDATE 1-GM Canada recalls over 250,000 compact cars

Tue Mar 2, 2010 10:49am EST

* GM recalls 256,583 compact cars in Canada

* Chevrolet Cobalt, Pontiac G5 and Pursuit models affected

TORONTO, March 2 (Reuters) - General Motors Co's [GM.UL] Canadian unit is recalling over 250,000 compact cars to fix defective power steering systems that have been linked to more than a dozen crashes in North America.

The company said on Tuesday the vehicles affected are the 2005-2010 model years Chevrolet Cobalt, the 2007-2010 Pontiac G5, and 2005-2006 Pontiac Pursuit.

GM Canada said the recall follows an investigation that showed drivers may have exert greater effort to steer their cars when traveling under 24 kilometers per hour (15 mph).

"While these vehicles are safe to drive because the drivers can still steer the vehicle, this measure is being taken out of concern for our customers," the company said in a statement.

GM said late on Monday it was recalling 1.3 million cars in North America to address a power steering problem linked to 14 accidents and one injury. [ID:nN02123715]

The company said the steering problem takes time to develop and tends to occur in older models whose warranty has expired. If the condition occurs, a chime will sound and a message reading "Power Steering" will appear on the car's instrument panel.

GM said a remedy is being developed and it will notify customers when it finalizes the plan.

The recall comes on the heels of a massive recall by Toyota Motor Corp (7203.T) that has led to increased public and regulatory scrutiny over vehicle safety issues.

Toyota global quality control chief Shinichi Sasaki and North American President Yoshimi Inaba are scheduled to appear before a U.S. Senate committee on Tuesday for a third hearing on its handling of consumer complaints about sudden acceleration. [ID:nN02123829] (Reporting by John McCrank; Editing by Frank McGurty)

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