GM Hit by Major Recall

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By Douglas A. McIntyre Published
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GM Hit by Major Recall

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A new recall of some General Motors Co. (NYSE: GM | GM Price Prediction) pickups includes about 870,000 affected vehicles. The country’s top automaker said that an electronic latch mechanism, part of an assembly used to open the rear gates of many 2020-2024 Chevy Silverado and GMC Sierra truck beds, could short circuit when water gets into the tailgate. The gate might unexpectedly loosen when parked, meaning unsecured loads in the bed might spill out without the driver knowing. (Check out America’s 16 favorite pickup trucks.)

The National Highway Traffic Safety Administration (NHTSA) site indicates that there had been over 125 complaints. The company’s statement about the flaw read, “(The) control logic in the body control module (BCM) would prevent release of the tailgate latch when the vehicle is in gear, even if the BCM receives a release signal from the exterior touchpad switch.”

Like most recalls, this one may not affect safety or even damage items in truck beds. However, they are bad for the manufacturer’s image.

Recalls cost billions of dollars, primarily in compensation for repair costs and victim compensation, although the latter is rare. According to USA Today, here are the top 10 carmakers by the number of vehicles potentially affected by recalls in the United States, per the NHTSA:

  • Honda (6,334,825)
  • Ford (6,152,614)
  • Kia America (3,110,447)
  • Chrysler (2,732,398)
  • General Motors (2,021,033)
  • Nissan North America (1,804,443)
  • Mercedes-Benz USA (478,173)
  • Volkswagen Group of America (453,763)
  • BMW of North America (340,249)
  • Daimler Trucks North America (261,959)

 

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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