General Motors Company (GM) has been cleared in an investigation by the National Highway Traffic Safety Administration (“NHTSA”) related to reports of inadvertent braking in some vehicles. The investigation, covering 106,000 Chevrolet Impala vehicles of model year 2014, was started in April after getting 2 reports of autonomous braking which resulted in crashes.
However, the investigation revealed that the drivers of both vehicles had accidentally turned on the electronic parking brake of the cars. The vehicles did not have cruise control systems which can brake in case of emergencies.
Moreover, no mechanical or electrical problem was found by General Motors in the parking brake switches of the vehicles. However, the automaker did find a parking brake software problem in some cars that resulted in the recall of 133,000 cars, including the Chevrolet Impala.
Nevertheless, the NHTSA investigation has been closed without asking for a recall. However, the NHTSA clarified that closing of the investigation does not imply that any safety issue was not detected by it.
In related news, the NHTSA also closed an investigation into reports of rusting of the heat shield in some vehicles of Ford Motor Co. (F) without seeking a recall. According to the complaints, the rusting could dislocate the heat shield and jam the steering shaft. The involved vehicles are 500,000 Ford Crown Victoria, Mercury Grand Marquis and Mercury Marauder vehicles of model years 2004 to 2007.
General Motors currently carries a Zacks Rank #4 (Sell). Investors interested in the auto industry could consider better-ranked stocks like Douglas Dynamics, Inc. (PLOW) and STRATTEC Security Corporation (STRT), both sporting a Zacks Rank #1 (Strong Buy).
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