General Motors Company
) plans to recall 15,575 units of few Buick, Cadillac and
Chevrolet model cars in order to fix their defective driver-side
air bags and head restraints. The problem could lead to injury in
case of a crash.
The National Highway Traffic Safety Administration (NHTSA)
reported that the recall includes 2,949 units of Buick Verano,
Chevrolet Cruze and Chevrolet Sonic compacts due to the problem
with the air bags that might not deploy in a crash. In addition,
the company would recall 12,626 units of 2013 Cadillac XTS sedans
for fixing rear-seat head restraints that might not lock in
The company's dealers will repair the vehicles free of charge.
They will replace the steering-wheel air-bag coil on the compact
cars and the head restraints on the Cadillac sedans.
Automotive safety recalls were brought into focus by media after
) announcement of the largest-ever global recall of 3.8 million
vehicles in September 2009, triggered by a high-speed crash that
killed 4 members of a family.
Later on, a string of recalls has led Toyota to face numerous
personal injury and wrongful death lawsuits in federal courts.
The Transportation Department of U.S. had also imposed a fine of
$48.4 million on the company due to late recall of millions of
GM seems to be very cautious about finding and fixing the defects
in their vehicles in order to keep its brand value intact. Of
late, the company made a number of vehicle safety recalls.
At the beginning of October, the company has announced plans to
recall 40,859 cars in warm-weather states in the U.S. due to a
problem with their plastic-made fuel pump modules that could
crack and cause a fuel leak and fire.
The recall included Chevrolet Cobalt and Pontiac G5 sedans from
the 2007-2009 model years, and Chevrolet Equinox, Pontiac Torrent
SUVs, and Saturn Ion sedans from the 2007 model year.
GM, a Zacks #3 Rank (Hold) company, posted a 9.7% fall in
earnings to 93 cents per share (excluding special items) in the
third quarter of the year from $1.03 in the corresponding quarter
a year ago. However, earnings per share in the quarter far
exceeded the Zacks Consensus Estimate of 61 cents.
Total profit ebbed 5.9% to $1.6 billion from $1.7 billion a year
go. The decline in profit was attributable to lower profits from
North America and increased loss in Europe.
Revenues in the quarter grew 2.5% to $37.6 billion, surpassing
the Zacks Consensus Estimate of $36.3 billion. Worldwide sales
volume inched up 1.6% to 2.3 million units from 2.2 million units
a year ago. However, total market share declined to 11.6% from
12.1% in the third quarter of 2011.
Operating income fell 11.2% to $1.6 billion from $1.8 billion a
year ago. However, adjusted earnings before interest and tax
(EBIT) rose 4.5% to $2.3 billion from $2.2 billion a year
GENERAL MOTORS (GM): Free Stock Analysis
TOYOTA MOTOR CP (TM): Free Stock Analysis
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