General Motors Company (NYSE: GM) has announced six new recalls totaling approximately 8.4 million vehicles in North America, of which around 7.6 million are in the U.S. This takes the total number of recalls by the automaker this year to 54, covering 29 million vehicles in North America.
The largest of the 6 recalls covers more than 7.6 million 1997–2005 Chevrolet Malibu, 1998–2002 Oldsmobile Intrigue, 1999–2004 Oldsmobile Alero, 1999–2005 Pontiac Grand Am, 2000–2005 Pontiac Grand Am, 2000–2005 Chevrolet Impala and Monte Carlo and 2004–2008 Pontiac Grand Prix in North America. These cars have a problem related to unintended rotation of the ignition switch.
Another 0.6 million 2003–2014 Cadillac CTS and 2004–2006 Cadillac SRX have been recalled separately for a similar problem. The third recall covers 0.19 million 2005–2007 Buick Rainier, Chevrolet TrailBlazer, GMC Envoy, Isuzu Ascender, Saab 9-7x, 2006 Chevrolet TrailBlazer EXT and GMC Envoy XL in North America. These vehicles have been recalled due to a problem in the driver's door module for power locks and window switches.
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Further, over 20,000 2011–2014 Chevrolet Cruze, 2012–2014 Chevrolet Sonic, 2013–2014 Chevrolet Trax, Buick Encore and Verano have been recalled in North America to fix the engine block heater power cord. Additionally, 12,000 2007–2011 Chevrolet Silverado HD and GMC Sierra HD equipped with an auxiliary battery have been recalled for problem in the underhood fusible link in the battery.
The smallest of the 6 recalls cover merely 117 2014 Chevrolet Camaro and Impala, Buick Regal and Cadillac XTS that have issues related to the superhold joint fastener torque. There were 7 accidents, 8 injuries and 3 casualties in the recalled vehicles, per General Motors. However, the company is not certain if the problems in the vehicles resulted in the accidents.
General Motors will incur about $1.2 billion in charges for recall-related repairs in the second quarter of 2014. The company recorded a $1.3 billion charge for recall-related repairs in the first quarter.
At present, General Motors carries a Zacks Rank #4 (Sell). Some better-ranked automobile stocks worth considering include Fox Factory Holding Corp (NASDAQ: FOXF), Gentherm Incorporated (NASDAQ: THRM) and China Automotive Systems Inc. (NASDAQ: CAAS). All these stocks sport a Zacks Rank #1 (Strong Buy).
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