The automobile market is witnessing a series of recalls and
the latest to join the list is
General Motors Company
), which is recalling the diesel version of Chevrolet Sail. The
automaker is recalling 4,000 vehicles in India to fix a faulty
General Motors will be recalling 2,910 compact cars and 1,090
subcompact hatchback units of Chevrolet Sail. The automaker will
repair a fault in the crankshaft hub bolt, which could adversely
affect the engine's performance.
In Jul 2013, General Motors had recalled 114,000 Chevrolet Tavera
sport-utility vehicles (manufactured from 2005 to 2013) in India.
The company recalled the vehicles in order to repair problems
related to emission standards and other government
General Motors had also stopped the production and sale of Tavera
BS3 and BS4 till it fixed the problem and fired several employees
for breach of corporate policies. Tavera production will begin
soon after the automaker receives government approval for a
technical solution to the emission issue.
Ford Motor Co.
) announced that it is recalling Ford Crown Victoria, Mercury
Grand Marquis and Lincoln Town Car sedans manufactured from 2005
to 2011. The automaker is recalling 370,000 vehicles in the U.S
and Canada to replace a steering shaft. Of these, Ford will be
recalling 355,000 vehicles in the U.S. and the remaining 15,000
vehicles will be recalled from Canada.
Ford, like General Motors, has also recalled vehicles earlier. In
Jun 2013, the company recalled 465,000 units of 2013 Ford Fusion,
Flex, Explorer, Taurus, Interceptor Sedan and Interceptor
Utility, together with the 2013 Lincoln MKZ, MKS and MKT globally
in order to repair fuel leakage.
In Dec, 2012, Ford recalled 80,000 2013 Fusions in order to
fix their engine leaks. In Nov, 2013 the automaker recalled
another 19,000 Fusions to repair the lighting system. Ford also
recalled 500 2013 Lincoln MKZ sedans with engine block heaters.
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In Aug, 2013, Dongfeng Honda Automobile Co., the Chinese arm of
Honda Motor Co., Ltd.
), announced that it is recalling all Siwei CR-V vehicles
manufactured from Mar 2, 2010 to Aug 30, 2012. The recall is
being made to fix a defective front shock absorber piston rod.
Honda is recalling almost 408,000 SUVs.
Product recalls can seriously dent a brand's image. Vehicle
recalls, amid the competitive scenario, will adversely affect the
company's brand value.
Currently, General Motors retains a Zacks Rank #3 (Hold).
), with a Zacks Rank #1 (Strong Buy), is worth watching in the