General Motors Announces 4 New Recalls - Analyst Blog

General Motors Co. GM announced three safety recalls and a non-compliance recall of 65,121 cars in the U.S. Including the recalls from Canada, Mexico and exports, the total number of recalled cars stands at about 69,839 units.

Of the 511,528 Chevrolet Camaros recalled by General Motors, 464,712 Camaros of model years 2010-2014 are in the U.S. The rest of the vehicles are in Canada, Mexico and other foreign countries.

General Motors stated that the recalled Chevrolet Camaros were detected with a defect similar to the ignition switch problem. In the Chevrolet Camaros, the driver's knee can hit the key FOB resulting in accidental displacement of the key from the run position. This can lead to either reduction or loss of power. General Motors detected this fault during internal testing carried out during the ignition switch recall period.

General Motors' Camaro ignition system meets all engineering specifications and is different from the ignition systems of Chevrolet Cobalts and other small cars related to the ignition switch recall.

There are reports of three crashes leading to four minor injuries due to this problem. As a solution, General Motors announced that it will change the Camaro key to a standard design which will help avoid any contact between the key and FOB.

General Motors also recalled 28,789 Saab 9-3 convertibles of model years 2004-2011. This recall was made as the automatic tensioning system cable in the driver's side front seat belt retractor has the possibility of breaking. To aggravate the matter, the seat belt webbing will not retract in such a situation. To fix the problem, dealers will be replacing the driver's side retractor and if demanded, the passenger side retractor will also be substituted. In addition, General Motors also extended the coverage for the passenger side belt retractors of the 2004 Saab 9-3 sedan from the initial 10-year period to the entire life of the vehicle. Notably, no casualties have been reported due to this issue.

In the third safety recall, General Motors included 21,567 Chevrolet Sonic cars of model year 2012. The vehicles feature a six-speed automatic transmission and a 1.8-liter four-cylinder engine. The automaker recalled the vehicles due to the possibility of fracture of the transmission turbine shaft as a result of a supplier quality issue. If the vehicle is driven under this condition all the forward gears may not operate. Dealers will be replacing the transmission turbine shaft to fix the issue. There were no casualties reported due to this problem.

Finally, General Motors recalled 14,765 Buick LaCrosse sedans of model year 2014, as a wiring splice in the driver's door was susceptible to corrosion and breakage. In such a situation there can be incorrect supply of information to the circuits resulting in functioning of the passenger windows, rear windows and the sunroof when the vehicle is not operating. General Motors stated that dealers will examine the driver door window motor harness and change the electrical splice if necessary. However, there is no report of thefts, crashes, injuries or fatalities due to this problem.

For all the recalls, the customers will receive letters informing them about details pertaining to the vehicle repair. All the repairs will be done for free and courtesy transportation will also be provided.

Recently, General Motors agreed to pay a fine of $35 million to the U.S. safety regulators, related to the late recall of vehicles with an ignition switch defect. Earlier, automakers like Ford Motor Co. F and Toyota Motor Corp. TM have also been penalized for delayed recalls.

General Motors currently holds a Zacks Rank #3 (Hold). Fox Factory Holding Corp FOXF is a better-ranked automobile stock worth considering. It carries a Zacks Rank #1 (Strong Buy).