General Motors Company
) discovered a problem in the strap welds of its Chevrolet Sonic
cars, which could lead to fire in extreme cases. As a result, the
company is recalling 1,658 cars of model years 2013 and 2014. 100
of the recalled cars are in Canada, while the rest are in the
General Motors noticed the problem at its assembly plant in
Orion, MI. Although the company is not aware of any casualties,
it is recalling the cars to examine and if necessary, repair the
According to General Motors, the severance of the strap
bracket can cause the fuel tank to rest on the exhaust pipe or
plastic fuel tank shield. While this will only lead to some
noise, the fuel tank might separate from the vehicle if the
shield and fuel filler neck yield to the weight. Moreover, if the
fuel tank is pierced, it can cause a serious combustion.
The news led to a 1.5% decline in the share price of General
Motors to $35.18 on Monday. The company announced at least 3
other recalls for around 0.41 million vehicles in the last
In September, General Motors announced the recall of the
diesel version of Chevrolet Sail. The automaker is recalling
4,000 vehicles in India to fix a faulty engine part. In August,
the company recalled its 2011 and 2013 Chevrolet Cruze cars in
the U.S. to fix a problem in the power-assisted brakes.
In Jul 2013, General Motors had recalled 114,000 Chevrolet
Tavera sport-utility vehicles (manufactured from 2005 to 2013) in
India to repair problems related to emission standards and other
Other players in the automobile industry like
Toyota Motor Corp.
Ford Motor Co.
Honda Motor Co., Ltd.
) are also witnessing a series of recalls.
General Motors currently carries a Zacks Rank #2 (Buy).
FORD MOTOR CO (F): Free Stock Analysis Report
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