This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

GM Issues Three More Recalls Covering 474,000 Vehicles

Stocks in this article: GM

By Tom Krisher

DETROIT -- General Motors (GM) extended its record-breaking string of safety problems, announcing Friday three more recalls, including a large one involving its top-selling vehicle.

The recalls, part of a top-to-bottom safety review, bring the company's total for the year to 48, covering more than 20 million cars and trucks. That beats GM's old full-year record of 10.75 million in 2004.

Friday's recalls cover 474,000 vehicles worldwide for a variety of problems.

The largest affects almost 467,000 four-wheel-drive Chevrolet Silverado and GMC Sierra pickups, as well as GMC Yukon and Chevrolet Tahoe and Suburban SUVs. The Sierra is GM's top-selling vehicle.

The company said a software glitch can cause the transmission transfer cases to shift into neutral on their own on 2014 and 2015 models. That can cause loss of power, or it can let the trucks roll away if parked. GM says it knows of no crashes or injuries. Most were sold in the U.S. and Canada, with a small number of exports. Dealers will recalibrate the software.

The other recalls are much smaller and also had no reported injuries. One affects nearly 4,800 Chevrolet SS and Caprice police cars with faulty windshield wiper modules. Gear teeth can become stripped, causing the wipers to fail. Dealers will replace modules if needed.

In the other case, dealers will replace the two rear shock absorbers in about 2,000 2014 model year Chevrolet Corvettes with the FE1 or FE3 suspensions. An insufficient weld could lead to a fracture.

GM's safety troubles, coupled with some large recalls from other manufacturers, have pushed the U.S. auto industry to a new full-year record for the number of vehicles recalled. Automakers have recalled 32.4 million vehicles in less than six months, surpassing the old annual record of 30.8 million, also set in 2004, according to Stericycle, a firm that tracks recalls and helps corporations manage them.

GM's troubles started in February when it began recalling older small cars to fix ignition switches that can turn off engines on their own. That kills power steering and brakes and can cause drivers to lose control. It also disables the air bags. The problem ballooned to 2.6 million vehicles, and GM was forced to admit that it knew of the defect for more than a decade yet didn't recall the cars until this year. GM says the problem caused 54 crashes and at least 13 deaths, although lawmakers say the death toll is closer to 100.

The ignition switch problem touched off a massive safety review in the company, as well as investigations by Congress, the Justice Department and the National Highway Traffic Safety Administration. GM paid NHTSA a $35 million fine for delays in reporting problems to the safety agency, and it has announced or taken charges totaling $2 billion to cover recall costs.

On Thursday, NHTSA posted documents showing that GM would recall about 29,000 Chevy Cruze compacts in the U.S. for an air bag problem. GM said Friday that 4,000 Cruzes from Canada are included in the recall.

 

Copyright 2014 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,677.90 +216.58 1.32%
S&P 500 1,950.82 +23.71 1.23%
NASDAQ 4,452.7920 +69.9450 1.60%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs