General Motors Recalls 38,000 Hybrid Cars

is recalling over 38,000 2012 and 2013 Chevy Malibu Eco, Buick LaCrosse and Buick Regal vehicles,

. According to the WSJ, the models contain eAssist hybrid powertrains. General Motors stated that a malfunctioning generator control module can activate a malfunction warning light and result in the gradual loss of battery charge, as noted the WSJ. If ignored, the vehicle could eventually stall, develop a burning smell or in rare cases, have fires in the trunk. General Motors noted the problem stems from potential overheating of the circuit boards in the generator control module. On this note, it is aware of control board incidents, including two trunk fires, as reported by the WSJ. According to the WSJ, most problems occurred within the first 1,000 miles of use, there have been no reported injuries and cars built after December of 2012 are not included in the recall. The recall comes at a bad time for General Motors, which only began catching up in the hybrid market fairly recently. The company has generally performed woefully in the US hybrid market since it began to take shape in 1999 when

, marking the first mass-marketed hybrid in the world's largest economy. A year later,

released the Prius, easily the most popular hybrid in America to date. The Prius accounted for just over

, with Toyota and other Japanese automakers dominating in this regard. Meanwhile, General Motors accounted for a total of just 2.8 percent of this market during the same time period. And, while the Detroit automaker lead the US hybrid market in late 2012 and early 2013, it has crashed back to Earth over the past two months. It finished a distant third behind

and

in

and

, according to Hybridcars.com. Not to mention, this will certainly take a toll on the auto giant's patchy reputation and, perhaps, the American auto industry's ability to produce eco-friendly vehicles. It's no secret that, while American automakers have built high-quality trucks, the Japanese have developed a reputation for building reliable, fuel-efficient cars. A recall of this magnitude, in proportion to General Motors' overall small share of the US hybrid market, will likely prove a significant setback both operationally and in terms of consumer confidence. Thus far, the news hasn't affected the 105 year-old company severely on Wall Street, as the stock has declined less than one percent on Tuesday. However, given the rapidly-increasing interest in green, or at least greener, vehicles from both consumers and government officials, General Motors may feel a potent sting from this recall via reduced future demand for its line of hybrid-electric cars. Meanwhile, Japanese rivals Honda, Nissan and Toyota are all up on Tuesday, perhaps as investors bet on increased sales for the said companies while General Motors deals with problems in its hybrid lineup.