GM Recalls 312K Cars in North America on Safety Grounds - Analyst Blog

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General Motors Co. ( GM ) has yet again announced six recalls involving about 312,000 vehicles in North America. This year, General Motors issued 66 recalls covering around 29 million cars and trucks. This comfortably surpasses the largest recall in a year of 10.75 million vehicles made by the automaker in 2004. Meanwhile, the total industry recall stands at 40 million units till date.

The first recall involves 215,243 Saturn VUEs of model years 2002 and 2004. The vehicles have been found to have defective ignition keys which can be removed even when the vehicle is running. Notably, this issue has resulted in two crashes along with one injury.

General Motors has revealed that dealers will be inspecting the key and the binding for possible glitches, and will replace the ignition cylinder and key for free if required. The automaker also cautioned customers against using the vehicles till the repairs are done. Also, those still driving the vehicles need to apply reverse gear and set the parking brake before leaving the car. Including this, General Motors has recalled 16.5 million vehicles with faulty ignition switches, in total.

The second recall involves 72,826 Cadillac ATS four-door sedans, Buick Encore, and Chevrolet Trax of model year 2013. The automaker revealed that some front lap belts in these vehicles may not lock securely resulting in involuntary movement of the occupants in cases of accidents. As a precautionary measure, dealers will be replacing the belt pretensioners though there is no report of crash or injury owing to this issue. Also, dealers have been barred from selling these vehicles till the repairs are made.

Following this, General Motors recalled 15,386 Chevrolet Impala sedans of model year 2014-2015 in North America. The recall has been made to address malfunctioning front console storage doors, which may not latch properly in case of a rear crash, in a few LT and LTZ models. Dealers will replace the latch and discontinue the sale of the vehicles till the fault is fixed. However, there is no news of crash or injury resulting from this glitch.

Furthermore, General Motors recalled 3,624 Cadillac ATS vehicles of model years 2013 and 2014 owing to a fault in front lighting. These cars have been exported from the U.S.

General Motors also recalled 2,091 Chevrolet Aveo of model year 2009-2010 and Pontiac G3 vehicles of model year 2009 in North America and Chevrolet Optra of model year 2007 in Canada. The vehicles have been detected with brake fluid issues which could result in faulty break application. However, there have been no reports of crash or injury cropping up from this problem so far.

The final recall included 3,110 Chevrolet Spark cars of model year 2014 with no report of any mishap yet. The recalled vehicles have been identified with inadequate tightening of lower control arm bolts. Dealers will examine the vehicles and tighten the bolts as per requirement.

General Motors currently holds a Zacks Rank #3 (Hold). Better-ranked automobile stocks worth considering include Tesla Motors, Inc. ( TSLA ), Visteon Corporation ( VC ) and Accuride Corp. ( ACW ), all of which sport a Zacks Rank #1 (Strong Buy).

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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 Nasdaq, Inc.

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

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