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Zacks_Analysts' Blog : GM Recalls 1.5 Million Vehicles - Analyst Blog

Date June 9, 2010    Comments Comments (0)    Rate this post Recommend This Post (46)   
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General Motors (MTLQQ) has announced a global recall of about 1.5 million vehicles to fix a problem with a heated windshield wiper fluid system that causes fires. About 1.4 million vehicles in the U.S. and more than 100,000 vehicles in Canada, Mexico and other international markets have been affected by the recall.



The recall affected 2006 to 2009 model years of Buick Lucerne, Cadillac DTS, and Hummer H2; 2008-2009 Buick Enclave and Cadillac CTS; 2007-2009 Cadillac Escalade, Escalade ESV and Escalade EXT; 2007-2009 Chevrolet Avalanche, Silverado, Suburban and Tahoe; 2007-2009 GMC Acadia, Sierra, Yukon and Yukon XL; 2007-2009 Saturn Outlook; and 2009 Chevrolet Traverse.



This is, in fact, GM’s second recall over the same issue in two years. In August 2008, the automaker recalled 900,000 vehicles due to the same problem of a heated washer fluid system on the back of a short circuit on the circuit board that overheated the ground wire in the vehicles.



The National Highway Traffic Safety Administration closed its investigation after the recall in 2008. However, GM has recently discovered fires in the vehicles that had been fixed under the 2008 recall, prompting the latest announcement.



GM has decided to disable the heated washer fluid system module in order to prevent the cars from catching fire. The automaker has agreed to pay $100 to owners and to people leasing the vehicles as the feature will be disabled.



GM has stated that customers will begin receiving the recall letters later this month but can contact their dealer to make an appointment to have the heated washer system removed.



Automotive safety recalls have become the talk of the town after Toyota Motors’ (TM) announcement of the largest-ever global recall of more than 8.5 million vehicles so far this year. The Japanese automaker’s recall was related to problems such as faulty accelerator gas pedals and slipping floor mats as well as defective braking systems.
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Read the full analyst report on "TM"
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Tags : MTLQQ   DTS   H2   CTS   ESV   EXT   GMC   XL   GM   TM  

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