Share price of General Motors Co. (GM) fell 1.5% to $33.44 on Sep 22 after the automaker announced yet another recall of 221,558 vehicles. Out of the total, 205,309 vehicles are from the U.S, while the remaining are from Canada and other countries. A major glitch in the parking brake has been detected which may cause the brake pads to partially engage, leading to fire.
The recalled vehicles include Cadillac XTS of model years 2013–2015 and the Chevrolet Impala of model years 2014–2015. According to the National Highway Traffic Safety Administration, if a vehicle operates with the brake pads partially engage for long, there are chances that the rear brakes will generate considerable amount of heat and smoke and maybe even sparks. General Motors also said that the brake pads that are partially engaged with the rotors may lead to excessive brake heat which may lead to fire.
However, there are no reports of fire, crash or injury so far. General Motors said that it will inform the owners and repair their vehicles free of cost.
Recently, General Motors announced a recall of 3,200 vans which run on natural gas. The vehicles were recalled to fix a gas leak risk which may lead to fire.
General Motors and safety regulators with the National Highway Traffic Safety Administration stated that there are chances of gas leak from the vehicle owing to a high-pressure regulator. However, there have been no reports of fire, crashes or injuries related to this issue.
The company has also announced that its dealers will fix the vans for free. However, the unavailability of parts at dealership service departments will delay the repair.
General Motors provides various alternatives to the conventional gasoline vans such as the Chevrolet Express and GMC Savana of model years 2011 — 2014. Notably, the company has 3,196 such vans registered in the U.S. and another 13 in Canada.
General Motors currently carries a Zacks Rank #3 (Hold). Better-ranked automobile stocks worth considering include Tesla Motors, Inc. (TSLA), Visteon Corporation (VC) and Fox Factory Holding Corp (FOXF). While Tesla and Visteon Corporation sport a Zacks Rank #1 (Strong Buy), Fox Factory carries a Zacks Rank #2 (Buy).
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