Friday, May 16, 2014

GM Issues Five New Recalls For 2.99 Million Vehicles

2014 Chevrolet Malibu

And the beat goes on: General Motors has issued five new recalls for 2.99 million vehicles, bringing the number of affected GM products to a total of 13 million worldwide since late February of this year.

The Detroit News reports the bulk of the new recalls is composed of 2.7 million units whose tail lamps could also disable the cruise control, electronic-stability control and panic-braking assist. In addition:

  • 111,000 2005 – 2007 Chevrolet Corvettes: loss of low-beams
  • 140,000 2014 Chevrolet Malibus: hydraulic-brake booster malfunction
  • 19,225 2013 – 2014 Cadillac CTS: windshield wiper failure
  • 477 2014 Chevrolet Silverado, Tahoe and GMC Sierra: tie-rod defect linked to loss of steering control

GM Vice President of Global Vehicle Safety Jeff Boyer stated the latest recalls were "examples of two ways" the automaker is doubling-down its focus on customer safety going forward with the design and production of its vehicles worldwide:

We have redoubled our efforts to expedite and resolve current reviews in process and also have identified and analyzed recent vehicle issues which require action. These are examples of our focus to surface issues quickly and promptly take necessary actions in the best interest of our customers.

Though the moves to find and fix as many issues as possible have shown it is turning a new leaf toward safer vehicles, GM could see its efforts all for naught as far as perception is concerned, according to Ervin Hill Strategy President Dan Hill. He says recalls overall are signs of lapses in product quality:

That's going to play into the narrative that the "New GM" is just like the "Old GM." I think they do have a real reputation crisis on their hands in terms of quality.

Hill adds GM will have to prove to people the recalls are being issued in the best interest of their customer base, and not just because it has perceived issues with quality overall. The automaker lost $1.3 billion in Q1 2014 from recall efforts, and expects to take a $200 million hit in Q2 2014 earnings thus far.



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