General Motors Company (GM) has announced the recall of 316,357 vehicles, primarily in North America, to fix malfunctioning headlights. According to the company, a problem in the headlamp driver module could lead to temporary or permanent malfunctioning of the low-beam headlamps and daytime running lamps. This increases the possibility of an accident.
However, the high-beam headlamps, marker lamps, turn signals and fog lamps are not affected by the issue. The vehicles covered under the recall are the 2006–2009 Buick LaCrosse sedans; 2006–2007 Chevrolet Trailblazer, GMC Envoy and Buick Rainier SUVs; and 2006–2008 Saab 9-7X and Isuzu Ascender SUVs.
Of the total vehicles being recalled, 273,182 are in the U.S., while majority of the remaining vehicles are in Canada and Mexico. General Motors has notified the National Highway Traffic Safety Administration about the recall. The automaker is not aware of any crashes due to the issue.
The latest recall brings General Motors’ tally of recalls in North America to 79 this year, covering nearly 30.4 million vehicles. Owing to the series of recalls made, the company had recorded a $2.7 billion charge for recall-related repairs in the first nine months of 2014.
Recently, the General Administration of Quality Supervision Inspection and Quarantine, China’s leading quality watchdog, announced that General Motors’ Chinese joint venture with SAIC Motor Corp. – Shanghai General Motors Co – will recall 40,496 Buick LaCrosse sedans in China in Mar 2015 to fix defective headlights. The recall will cover the vehicles manufactured between Jan 11 and Nov 8, 2006.
General Motors currently carries a Zacks Rank #3 (Hold). Investors interested in the auto industry could consider better-ranked stocks like Gentex Corp. (GNTX), Douglas Dynamics, Inc. (PLOW) and STRATTEC Security Corporation (STRT), all sporting a Zacks Rank #1 (Strong Buy).
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