NEW YORK (TheStreet) -- General Motors (GM) has issued a recall of 1,658 of its Chevrolet Sonic model over concerns a manufacturing fault could cause the fuel tank to separate from the car body. Reuters reports the recall affects 1,558 models in the U.S. and 100 in Canada.
Should the fuel tank separate from the car, it could easily cause a fire if punctured. GM stated it has not received any related reports of fires or accidents but has acted preemptively after discovering the issue at a Michigan assembly plant.
"We continue to like the stock because of the strength in the auto cycle, improved balance sheet, the turn in Europe and market share gains in China," Jim Cramer and Stephanie Link note in their 'Action Alerts Plus' Weekly Roundup.
General Motors shares are trading 0.98% lower to $35.35 in pre-market trading. Shares closed 1.16% higher on Friday to end at $35.70.
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 some important positives, 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 revenue growth, solid stock price performance, attractive valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income."