General Motors CompanyGM is recalling 1.2 million pickup trucks and sport utility vehicles (SUVs) across the globe due to problems pertaining to power steering, per Reuters. According to the National Highway Traffic Safety Administration, the flaw that is perhaps due to software and electrical issues, may cause difficulty in steering the vehicle, particularly, while turning at a low speed. This even raises the chance of fire. Notably, in 2017, this carmaker had to recall 2014 model year trucks for the same problems.
The recall includes 1.02 million vehicles in the United States. The majority of vehicles recalled are from Canada and Mexico, and a small number of vehicles are from other countries. The models include Chevrolet Silverado 1500 and GMC Sierra 1500 pickups, along with Chevrolet Tahoe, Chevrolet Suburban, GMC Yukon and Cadillac Escalade SUVs, from the 2015 model year.
Per the company, the automaker has received reports of 30 crashes and two injuries but no death has been reported. Sources have added that the dealers will fix power steering software problems for free, though no specific date has been fixed yet to notify the customers. However, the company has informed that the software is available now; therefore, owners can contact dealers to schedule repairs.
Over the past three months, shares of General Motors have underperformed the industry it belongs to. Over this time frame, shares of the company have declined 22%, whereas the industry decreased by 16%.
Zacks Rank & Key Picks
General Motors currently carries a Zacks Rank #5 (Strong Sell). A few better-ranked stocks in the auto space are Fox Factory Holding Corporation FOXF , AB Volvo VLVLY and PACCAR Inc. PCAR , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Fox Factory has an expected long-term growth rate of 16.8%. Over a year, shares of the company have gained 64.2%.
AB Volvo has an expected long-term growth rate of 15%. Over the past two years, shares of the company have grown 49%.
PACCAR has an expected long-term growth rate of 10.8%. Shares of the company have risen 4.6% in the past six months.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportFox Factory Holding Corp. (FOXF): Free Stock Analysis ReportGeneral Motors Company (GM): Free Stock Analysis ReportPACCAR Inc. (PCAR): Free Stock Analysis ReportAB Volvo (VLVLY): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research