General Motors Company (GM) has announced three new recalls for a total of 83,572 sport-utility vehicles and pickup trucks. However, there have been no such reports of injuries related to these recalls.
The first recall by General Motors is mainly focused on the potential defect in the electrical system of the vehicles. The defective ignition switches in these vehicles can lead to shutting down of the engine and prevent deployment of the front airbags in the event of a crash. The automaker had to issue a series of recalls in 2014 due to this problem.
Though General Motors has recalled 83,000 vehicles for this problem, it believes that fewer than 500 of them are affected. The automaker discovered the latest issue in an internal review following warranty party returns. The affected vehicles mainly include Chevrolet Silverado HD of model years 2011 and 2012, Silverado LD, Suburban, Tahoe, Avalanche, GMC Sierra LD, Sierra HD, Yukon, Yukon XL Cadillac Escalade and ESV and EXT versions.
The second recall involves 56 Chevrolet Silverado and GMC Sierra pickup trucks, which were produced during Sep–Oct 2014. The automaker is recalling these vehicles due to concerns related to a faulty hose clamp.
The last recall by General Motors covers 152 Chevrolet Silverado and GMC 1500 pickup trucks of model year 2015. The company has issued the recall due to concerns regarding the rear axle shaft, which could fracture when the vehicles are driven.
In 2014, General Motors faced a challenging situation due to the delay in recalling 2.6 million vehicles with defective ignition switches. The automaker has launched a program to compensate the victims and families affected by crashes caused by the problem.
Currently, General Motors carries a Zacks Rank #3 (Hold). Better-ranked automobile stocks worth considering include PACCAR Inc. (PCAR), Magna International Inc. (MGA) and Meritor, Inc. (MTOR). While Meritor sports a Zacks Rank #1 (Strong Buy), both PACCAR and Magna International carry a Zacks Rank #2 (Buy).
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