General Motors Co.’s (GM) Chinese joint venture with SAIC Motor Corp – Shanghai General Motors Co – recently announced a recall involving 38,328 Cadillac sedans in the nation. A fault has been detected in the brake control software of the recalled vehicles.
The Cadillac XTS vehicles being recalled have been manufactured in the Oct 2012–Jul 2014 period. The automaker found that some drivers were facing problem in accelerating the vehicles owing to the faulty software.
This Cadillac recall by Shanghai General Motors Co follows the company's recall of 194,107 Buick vehicles in China in June. The Buick vehicle recall dealt with faulty headlights which could pose difficulty in turning off high beam lights.
Last year, China faced several vehicle recalls by different automakers as Chinese regulators implemented strict consumer safety norms. In total, automakers recalled 5.3 million vehicles last year in China.
Recently, General Motors’ peer Ford Motor Co. (F) also recalled 191,770 new Ford Focus and Classic Focus Sedans from China. The recalled vehicles were found to have the risk of fuel leaks which could even lead to fire. Notably, Ford Focus was the company’s best-selling compact sedan in 2013. The recalled Ford vehicles were manufactured in 2009 by the company's Chinese venture, Changan Ford Automobile Co Ltd. Ford has promised a free component replacement for all the recalled vehicles.
General Motors currently carries a Zacks Rank #3 (Hold). Better-ranked automobile stocks worth considering include Tesla Motors, Inc. (TSLA) and Fox Factory Holding Corp (FOXF). While Tesla sport a Zacks Rank #1 (Strong Buy), Fox Factory carries a Zacks Rank #2 (Buy).
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