GM Recalls Malibu in North America - Analyst Blog


General Motors Company ( GM ) is recalling 60,000 Chevy Malibu midsize cars from the U.S., Mexico and Canada. The automaker is recalling 44,000 Malibu to fix a problem related to window defrosters and another 15,000 Chevy Malibu are being recalled to fix the power seat wiring.

General Motors is recalling 42,696 Malibu vehicles of 2014 model year in the U.S., 1,034 in Canada and 676 in Mexico. The recall is being undertaken as the company found that the computer which controls the car's ventilation system may malfunction. If the system fails to defrost, the unclear windshield will cause difficulty in driving.

General Motors assured that it will reprogram the computer in the recalled cars. However, the customers will not have to incur any charges for this repair.

General Motors is also recalling 14,909 Malibus of model year 2013 in the U.S., 13 in Canada and 7 in Mexico. The vehicle features optional power front seats. The friction between the wiring harnesses in these seats and the seat frames can wear down the insulation and result in fire.

General Motors said that it is aware of two unattended incidents of fire due to this problem.

Recently, Volkswagen AG ( VLKAY ) recalled 2.64 million vehicles across the globe to fix certain drive system and electronic problems. The company revealed that the use of synthetic oil in the seven-speed dual-clutch DQ200 gearbox of certain cars and vans can result in electric malfunctions in hot weather conditions. Volkswagen will be replacing the synthetic oil with mineral oil in the gearboxes of 1.6 million cars and vans. Customers will not have to incur any charges for this replacement.

Toyota Motor Corp. ( TM ) also recalled 33,000 cars, pickup trucks and commercial vehicles globally to fix a problem related to the engine. The vehicles being recalled include Land Cruiser Prado mid-size SUV and several larger vehicles. While most of the recalls were made in Japan, the automaker also recalled 4,000 four-cylinder Tacoma pickup trucks of 2013 and 2014 base model in the U.S.

General Motors currently retains a Zacks Rank #2 (Buy). Ford Motor Co. ( F ), a Zacks Rank #1 (Strong Buy), is worth considering in the automobile industry.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: F , GM , TM , VLKAY

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