General Motors announced fresh recalls of another 2.7 million vehicles, including newer models, linked to various problems. We discuss the implications of these seemingly unending recalls for the company In a fresh recall episode, General Motors Company (GM) announced five sets of vehicle recalls on Thursday, totaling 2.7 million vehicles mostly in the US. The number tops the company's biggest recall of 2.6 million vehicles in February this year, with faulty ignition switches that led to 13 deaths and 31 crashes. GM said the additional recalls could weigh down on second-quarter earnings by $200 million. The company already realized a $1.3 billion charge in the first quarter of the year resulting from earlier recalls. Recall Vehicles and Issues Among the latest recalls are 2.4 million vehicles like the Chevrolet Malibu and Pontiac G6, mainly from the mid-2000s, that have been identified with brake light failures stemming from electrical wiring corrosion, which GM said has led to two injuries and 13 crashes but no deaths. Another set of recalls include 112,000 Chevrolet Corvette sports sedans for low-beam headlight failure. Notably, the recalls also include a number of newer models like the 2014 Chevrolet Malibu with software problems causing engine shutdowns and braking failures, the Cadillac CTS luxury sedan identified with a windshield viper flaw, and 2014 models of 477 GMC Sierra trucks and Chevrolet Silverado. The 2015 model of the Chevrolet Tahoe SUV also features in the recall list due to loose tie rods that can lead to a loss of control. GM has instructed owners of vehicles with faulty tie rods to refrain from driving until the problem is fixed.
Wow this is surprising but then again not really from General Motors. I would never purchase a vehicle from them with all the recalls that they have had. It is ridiculous all the different issues that these cars have. The engine failure and brake failure is just down right dangerous. Luckily for them, the fines that they will have to pay will only be a small percentage of the overall profit they made when selling these vehicles. They know that their vehicles are going to get recalled but they also know that they will have the money to cover the fines for the injuries and deaths associated. This is why I drive a German car.
True you are totally write on that sense in that case i prefer you have to see Toyota or Tesla Motors ?? what you say about these two motors ?
I'd short them bigtime if they were not so loved by so many top fund managers. I think it's a shit company overall, but I guess that they sell enough these days after the bailout to make up for these obvious screwups and coverups. I've long had a general aversion to US automakers because of the powerful unions anyway. Who knows, maybe someday I'll eventually be right about GM, and the big boys will eventually get away from them and they'll be heading towards the pink sheets again.
