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Business / Auto Quality

GM recalls 1.5m more vehicles

(Agencies) Updated: 2014-03-18 09:49

The automaker also is recalling 303,000 Chevrolet Express and GMC Savana full-size vans to replace plastic material in the passenger instrument panel to meet federal head-impact crash standards for unbelted passengers, a spokesman said.

Affected are vans from model years 2009 through 2014 that are rated to carry up to 10,000 pounds including the vehicle's own weight, the spokesman said. Most were sold in the United States, but also in Canada, Mexico and other markets.

In the XTS, a brake booster pump wiring issue can lead to overheating, melting of plastic parts and a possible engine compartment fire, the spokesman said. There were two reports of fires in unsold cars on dealer lots in June and September last year as well as two cases of melted components.

Affected are 63,900 of the 2013 and 2014 luxury sedans, mostly in the United States, but also in Canada, Mexico and a small number in the Middle East, the spokesman said.

GM recalls 1.5m more vehicles

Shanghai GM recalls 1.4m cars 

GM recalls 1.5m more vehicles

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Class action

GM said the new recalls resulted from Barra's push for a comprehensive internal safety review following the ignition-switch recall.

"I asked our team to redouble our efforts on our pending product reviews, bring them forward and resolve them quickly," Barra said in a statement on Monday.

On Friday, the automaker was hit with what appeared to be the first US class action related to the ignition-switch recall, as customers claimed their vehicles lost value because of the ignition switch problems. The proposed class action was filed in a Texas federal court. Other plaintiffs' lawyers say they are preparing to file similar cases in the coming days.

GM shares closed 1.6 percent higher at $34.63 on Monday on the New York Stock Exchange. Last week, the shares fell 10 percent.

Analysts have called the media coverage of the ignition-switch recall and resulting sell-off of GM stock "overdone."

"We think much is being made in the media about recent recall headlines, but in short, we believe GM is doing a good job balancing its ongoing investigation while taking steps to prevent further vehicle related incidents by proactively announcing new vehicle recalls," Stifel analyst James Albertine said in a research note on Monday.

"There is clearly a target on GM's back, in our view, given its highly publicized government-sponsored bailout and its industry-leading market share position."

Barclays analyst Brian Johnson said the risk of market-share loss increased because the latest recalls include newer models on dealer lots.

RBC Capital Markets analyst Joseph Spak said the charge for the recalls worked out to less than $100 per vehicle, but the greater risk was the potential damage to GM's reputation and whether that would force the company to offer higher incentives to customers to defend its US market share.

 

More about GM recalls:

GM recalls 1.5m more vehicles
GM recalls 1.5m more vehicles
Major vehicle recalls across China Models with Cadillac XTS at 2013 Chengdu auto show

 

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