General Motors Company
) Australian subsidiary, GM Holden, announced the recall of about
46,000 Commodore and Caprice cars of model year 2014. Of the
vehicles recalled, 41,933 vehicles are in Australia and 3,744 are
in New Zealand.
GM Holden is recalling the vehicles as it was discovered that
the pretensioner wiring harness, which tightens the seat belt, may
be wearing off due to friction with a bolt on the seatbelt buckle.
As a result, the automatic seatbelt tightening mechanism may fail
in case of a crash. General Motors said that it was not aware of
any injury related to the problem, which was discovered during
Last year, General Motors announced its decision to stop vehicle
and engine production and cut down engineering operations in
Australia by 2017 end. The automaker plans to transform into a
national sales company in Australia and New Zealand.
General Motors is trying to resolve outstanding safety issues
quickly. Last week, the automaker announced four separate recalls,
amounting to 2.42 million vehicles, in a single day in the U.S.
Additionally, the company recalled 284,913 Chevrolet Aveo and Optra
vehicles of model years 2004 to 2008 globally.
General Motors has announced 31 recalls so far this year. The
automaker estimates that it will incur a charge of about $400
million in the second quarter for repairing all the vehicles
recalled during this quarter. The company had recorded a $1.3
billion charge for recall-related repairs in the first quarter.
General Motors currently carries a Zacks Rank #3 (Hold). Some
better-ranked automobile companies worth considering are
Fox Factory Holding Corp
Tata Motors Limited
Fuji Heavy Industries Ltd.
). Fox Factory and Tata Motors carry a Zacks Rank #1 (Strong Buy),
while Fuji is a Zacks Rank #2 (Buy) stock.
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