NEW YORK (TheStreet) -- General Motors (GM) - Get Report stock closed lower by 1.99% to $34.96 on Tuesday, after the company announced that it will recall roughly 1.4 million vehicles that pose a fire hazard. 

There have been reports of 1,345 fires in older sedans and coupes as a result of oil leakages that might have landed on the hot exhaust and sparked engine compartment fires, according to Reuters. 

Although there have been post-repair fires in some vehicles, there have been no crashes or fatalities, Reuters adds. 

As a result of the oil leakage, there have been 19 minor injuries reported during the past six years. 

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Affected models are 1997-2004 Pontiac Grand Prix, 2000-2004 Chevrolet Impala, 1998-1999 Chevrolet Lumina and 1998-2004 Chevrolet Monte Carlo, 1998-1999 Oldsmobile Intrigue and 1997-2004 Buick Regal.

Separately, TheStreet Ratings team rates GENERAL MOTORS CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

We rate GENERAL MOTORS CO (GM) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, notable return on equity, good cash flow from operations and growth in earnings per share. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. In comparison to the other companies in the Automobiles industry and the overall market, GENERAL MOTORS CO's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • Net operating cash flow has significantly increased by 204.04% to $3,308.00 million when compared to the same quarter last year. In addition, GENERAL MOTORS CO has also vastly surpassed the industry average cash flow growth rate of 8.66%.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 7.5%. Since the same quarter one year prior, revenues slightly dropped by 1.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • GENERAL MOTORS CO's earnings per share improvement from the most recent quarter was slightly positive. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, GENERAL MOTORS CO reported lower earnings of $1.64 versus $2.35 in the prior year. This year, the market expects an improvement in earnings ($4.78 versus $1.64).
  • You can view the full analysis from the report here: GM