Cars and Drivers

Another Huge GM Recall -- 2.42 Million

GMBRANDMARK-blueflat
courtesy of General Motors
No, this is not a rerun. General Motors Co. (NYSE: GM) issued another four recalls Tuesday morning for a total of 2.4 million vehicles not already included in the millions already under recall. The company said that the recall is “a continuing effort to quickly address emerging safety issues.” It might also be called putting lipstick on a pig.

The four recalls include:

  • 1.34 million full-size Buick Enclave, Chevy Traverse and GMC Acadia crossovers from the 2009 to 2014 model years and Saturn Outlooks from model years 2009 and 2010 for a problem that could cause the front seat belt cables to fray and separate
  • 1.08 million Chevy Malibu and Pontiac G6 models from 2004 to 2008 and 2005 to 2008, respectively, for a problem with the automatic transmission
  • 1,402 Cadillac Escalades and Escalade ESVs from the 2015 model year for a bad weld on the passenger side air bag
  • 58 Chevy Silverado HD and GMC Sierra HD pickups from the 2015 model year for a faulty retention clip that could fail and cause a fire

The company said that there have been no fatalities reported as a result of any of these issues. Including these announced recalls, GM said it has initiated 29 safety and non-compliance recalls in the United States so far this year. By our count the company has now recalled more than 15 million vehicles in 2014, the most in the company’s history, and the year is not even half over yet.

GM is clearly trying to get out in front on some of these recalls. The 1,400 Cadillac recalls include 224 vehicles that have been sold, with the rest presumably still on dealer lots. The company did not say how many of the pickups had been sold through.

GM’s new CEO, Mary Barra, has clearly decided that the public relations hit the company takes for these recalls is less damaging than the hit the company will take if it waits for complaints to pile up and injuries or fatalities to occur. The bad news cannot go on forever, she hopes, and by being proactive perhaps the company can dispel consumer fears that all GM wants to do is sell them a new vehicle and then ignore them. We will see how that turns out.

GM stock was down about 1.5% to $33.73, in a 52-week range of $31.13 to $41.85. That 52-week low could be threatened if the company reports more recalls or lousy sales in May.

ALSO READ: GM May Have to Fire New CEO Mary Barra

Want to Retire Early? Start Here (Sponsor)

Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?

Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.

Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.