General Motors recalls 474000 best selling sedans – WallStreet OTC

Car maker General Motors, which is  facing a long string of safety issues, has made three more recalls on Friday for another 474,000 cars, including one that involves GM’s best-selling vehicle.

“In these vehicles, the transfer case may electronically switch to neutral without input from the driver.  If this occurs while a vehicle is in motion, no power will go to the wheels. If the vehicle is stopped or parked, it may roll away if the parking brake is not set,” a General Motors spokesperson said.

The vehicles that were recalled on Friday mostly include GM’s most popular and profitable models including the full-size pickup trucks and sport utility vehicles. These vehicles have helped fuel the company’s sales rebound from the recession in recent years.

The new recalls includes 392,459 full-size pickup trucks and sport utility vehicles in the United States, 53,607 in Canada and almost 21,000 sold elsewhere.

 General Motors recalls 474,000 best selling sedans

General Motors recalls 474,000 best selling sedans

According to the company, the main problem in these vehicles was that the four-wheel drive system could switch into neutral without any action by the driver. Moreover, the engine would continue to run but there would be no power to the wheels. Also, there was also problem with the emergency brake as if they were not set, a parked vehicle could roll away.

The recalled models are the 2014-15 GMC Sierra and Chevrolet Silverado pickups as well as the new 2015 Chevrolet Tahoe, Suburban, GMC Yukon and Yukon XL sport utility vehicles.

According to GM, it will recalibrate the software of affected vehicles. These vehicles are found mostly in the US and Canada.

With this latest development, the total number of recalls for General Motors this year has now surpassed 20 million vehicles. It is noteworthy, nearly 22 million vehicles were recalled last year by all the automakers combined.

Adding to the woes is the whopping amount that is being spent on the repairs of these vehicles.  Notably, GM has set aside USD 2 billion for repairs through the second quarter, which ends on Monday. That figure does not include the recalls announced on Friday.

Cruze sedan, GM’s most popular car, was pulled off the market after the company said air bags may be faulty.


General Motors recalls 474000 best selling sedans – WallStreet OTC

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