GM issues three new recalls
New recalls involve air bags, brake system plug; involve more than 1.5 million vehicles.
General Motors announced on Monday three new recalls — not related to last month’s ignition switch recall — that involve more than 1.5 million vehicles.
The big automaker also said it will take a $300 million charge against first-quarter earnings to pay for the four recalls.
GM said the trio of new recalls is “a result of (CEO) Mary Barra’s request for a comprehensive internal safety review following the ignition switch recall.”
Last month’s switch recall of 1.62 million vehicles worldwide triggered federal investigations into why GM knew of a switch problem as early as 2001 but recalled the cars only last month. Twelve deaths and 31 crashes have been linked to the switch recall. The new recalls:
Seat- mounted side air bags could fail due to a wiring fault in 1.18 million full-size crossover SUVs: the 2009-2013 Chevrolet Traverse, 2008-2013 Buick Enclave, 2008-2013 GMC Acadia and 2008-2010 Saturn Outlook.
GM says that if the air-bag warning light on the instrument panel illuminates, but the owner doesn’t take the vehicle to a dealer to check the bags, the wiring eventually will fail and the bags won’t work.
Dealers will modify connections in the air bag wiring. GM knows of no injuries or accidents linked to the problem.
A plug in the brake system of 63,900 of GM’s 2013 and 2014 Cadillac XTS sedans can come loose, allowing corrosion and causing overheating that could lead to an engine-compartment fire.
GM says it has reports of two fires at dealerships in dealer-owned cars and two warranty claims, but no fires, in customer cars. No injuries were reported.
Unbelted front passengers in Chevrolet Express and GMC Savana commercial vans can suffer head injuries because the material covering the passenger-side air bag doesn’t meet federal standards. Passengers who wear safe-- ty belts are not at risk, GM says.
Involved are 303,000 of the 2009-14 standard- and mediumduty models. Such vans primarily are used by tradesmen and delivery services. Some also are used as passenger shuttles.
GM issued a “stop delivery” order for vans still at dealerships until a fix is developed. It says it is “working diligently” to come up with materials that will meet the head-injury standard for non-belted riders.
Barclay’s analyst Brian Johnson, in a note to investors, wrote that the latest recalls continue a string of negative headlines that could affect GM’s stock price and market share in the near term.
But he wrote that the GM’s safety review leading to the new recalls “offers a silver lining in that the new management team is proactively trying to address the issues.”
GM shares closed on Monday at 34.63, up 54 cents, of 1.58%.