Besides the continuing embarrassment of all the recalls, it’s been a costly endeavor for the company as well. GM has set aside a whopping $2 billion for recall repairs through the second quarter ending Monday, and that amount doesn’t include money for the recalled vehicles announced on Friday.
The latest recall involves nearly 430,000 of some of GM’s most popular vehicles from the 2014 – 2015 model years in the US and Canada. These include both Sport Utility Vehicles (SUVs) and 4×4 pickup trucks. The latest issue is a possible software malfunction which can cause the vehicles to slip out of park into the neutral position. This would cause the wheels to lose power if the car was running, or could possibly send the car rolling away from its parked position if the emergency brake wasn’t engaged.
The following GM vehicles have the potential software issue:
- Chevrolet Silverado (2014 and 2015)
- GMC Sierra (2014 and 2015)
- Chevrolet Tahoe (2015)
- Chevrolet Suburban (2015)
- GMC Yukon (2015)
- GMC Yukon XL (2015)
GM has said their dealers will have to recalibrate the software for the vehicle’s transfer case control module in order to fix the software issue. While the issue is known to exist, GM has said they are not aware of any crashes or injuries which have been a result of a software glitch.
In addition, GM is recalling 30,000 Chevrolet Cruze sedans (2013-2014 model year) which have air bag inflator issues. GM says these inflators have the potential to either fail or rupture. If this happens, metal pieces from the faulty system could be propelled toward the driver and cause injury. GM has said that it’s currently aware of a single injury related to the issue. The Chevrolet Cruze is GM’s top-selling car in the US, selling approximately a quarter of a million units in 2013.
In addition to the Cruze, SUV and 4×4 recalls, there were two smaller recalls also announced on Friday. One involved the windshield wipers of 4,800 Chevrolet SS and Caprice police cars, and the other involves the suspension of 2,000 2014 Chevrolet Corvettes with FE1 or FE3 suspensions which need shock absorbers replaced.
June sales are scheduled to be announced for carmakers this coming Tuesday, and the outlook for GM isn’t good. Until this point, there hasn’t been a noticeable effect on demand for their vehicles due to all the recalls, but that might change with this month’s announcement. Part of the issue is, according to Truecar, GM has cut the incentives offered on new cars by almost 12% compared to the same time in 2013. The general consensus is GM is looking for ways to offset the $2 billion it’s already charged off to pay for fixing all the recalled vehicles, but this drop in incentives could also have a significant impact on sales.
(Photo courtesy of Andrea_44)