Canadian Manufacturing

Trouble continues for GM as automaker recalls another 2.4M vehicles

75,700 vehicles in Canada affected by latest recalls of newer model vehicles

May 21, 2014  by Dee-Ann Durbin, The Associated Press

DETROIT—Another day, another recall from General Motors Co. (GM).

At least that’s the way it seems as the automaker reviews safety issues across its line-up of cars and trucks in the wake of a mishandled recall of millions of older small cars.

The number of recalls issued this year by the top North American carmaker rose this week to 29 as GM announced four separate actions affecting 2.4 million cars and trucks.

GM has recalled 13.6 million vehicles in the United States since early February.


That’s more than the total number of cars it sold here in the last five years, and already surpasses GM’s previous U.S. recall record of 10.75 million vehicles, set in 2004.

By comparison, rival Ford has recalled 1.2 million vehicles in the U.S. this year, while Toyota has recalled 2.9 million, according to federal data and the companies.

The parade of bad news is part of the fallout from GM’s recall of 2.6 million Chevrolet Cobalts and other small cars for defective ignition switches—and a consequence of government regulation.

GM says it’s redoubling efforts to resolve outstanding safety issues.

It’s hiring 35 new safety investigators and is issuing recalls one by one, as soon as a decision is made.

GM can’t wait and announce a group of recalls once a month; it’s required by federal law to report defects to the government within five days of discovering them.

A failure to follow that law already landed GM in hot water with the U.S. government.

The company agreed last week to pay a US$35-million federal fine for concealing a deadly defect in the ignition switches for more than a decade.

GM says at least 13 people have died in crashes linked to the problem, although trial lawyers suing the company say the death toll is at least 53.

Congress and the U.S. Justice Department have ongoing investigations.

More recalls are likely.

GM spokesperson Alan Adler said the company is making progress on reviewing older investigations, “but work is continuing.”

But Akshay Anand, an industry analyst with Kelley Blue Book, said the order to dealers to stop selling the 2015 Cadillac Escalade and 2014 Buick Enclave, Chevrolet Traverse and GMC Acadia until they’re repaired could give more buyers pause.

The initial recalls covered older models like the discontinued Cobalt; now they’re affecting newer models.

The recalls announced this week include Buick Enclave, Chevrolet Traverse, GMC Acadia full-size crossovers from the 2009-2014 model years and Saturn Outlooks from 2009-10 because front safety lap belt cables can fatigue and separate over time.

In a crash, a separated cable could increase the risk of injury to front seat passengers.

A total of 1.3 million vehicles are affected, including 75,700 in Canada.

Detroit-based GM said it will take a US$400-million charge for repairs on all vehicles recalled so far this quarter.

That includes the US$200-million charge the company announced last week when it issued five recalls covering 2.7 million vehicles.

That’s on top of a US$1.3-billion charge the automaker took for recalls in the first quarter.

The recalls announced this week were:

  • 1.3 million Buick Enclave, Chevrolet Traverse and GMC Acadia crossovers from the 2009-2014 model years and Saturn Outlook crossovers from 2009-2010. GM says the front safety lap belt cables can wear down and separate over time. GM has told dealers they cannot sell new or used models of the vehicles until repairs are made.
  • 1.1 million Chevrolet Malibu sedans from the 2004-2008 model years and Pontiac G6 sedans from 2005-2008 because a shift cable could wear out over time. If that happens, the driver may not be able to select a different gear, remove the key from the ignition or place the transmission in park. GM knows of 18 crashes and one injury from the defect.
  • 1,402 Cadillac Escalade and Escalade ESVs from the 2015 model year because a faulty weld could result in partial deployment of the front passenger air bag in a crash. GM has stopped the sale of the models and alerted 224 current owners not to let occupants sit in the front passenger seat until the vehicle has been repaired. GM knows of no injuries related to the defect.
  • 58 Chevrolet Silverado HD and GMC Sierra HD pickups from the 2015 model year because retention clips attaching the generator fuse block to the vehicle body can become loose and lead to a potential fire. No crashes or injuries are related to the defect.

—With files from The Canadian Press

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