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Total Recall: GM Pulls 3 Million More Cars Due To Problems With Brakes, Lights, Wipers And Steering
When "new" GM emerged from bankruptcy, in addition to losing billions of taxpayer funds so the government can buy a few hundred thousand labor union votes, the narrative sold to the public is that the company is a new, and vastly improved version of the legacy monster that went bankrupt in 2009, and instead of worrying about its balance sheet, the company would have the freedom to innovate and impress new customers. However, following the recent spate of scandals rocking the "new" GM, the only thing that the bankruptcy appears to have done is pushed its litigation liabilities into the pool of prepetition unsecured claims. As for the quality, well, not so much, which explains why recalls are now becoming a daily event such as the most recent one which as we learn today involves a whopping 3 million cars and trucks worldwide to fix five different safety problems that have triggered hundreds of complaints and some injuries, but no deaths.
Among the extensive components that have resulted in this most recent fiasco for the new CEO are brakes, lights, wipers and the steering wheel.
Most of the vehicles -- 2.7 million -- are in the U.S. They include a handful of GM's redesigned pickups and SUVs, which have a potential steering problem.
It's serious enough that GM sent those owners overnight-delivery letters Wednesday, telling them to have their trucks hauled -- not driven -- to dealers for inspection and repair, if needed.
Also included in the new recall: 140,067 new Chevrolet Malibus for brake issues, reported here Wednesday.
The good news: this announcement will allow GM to addback another $200 million in "one-time"charges to its EPS in the process almost certainly beating whatever its Q2 earnings estimate is.
The models impacted in the latest recall:
- 2,440,591 U.S.-market, previous-generation passenger cars for a taillamp malfunction that also can disable the cruise control, traction control, electronic stability control and panic braking assist feature. Another 194,314 are in Canada and 68,819 were exported.
- 477 full-size, 2014-model, U.S.-market pickup trucks and 2015 Chevrolet Tahoe SUVs for a tie-rod defect that can lead to a crash. Another 33 are in Canada and 10 have been exported.
- 111,889 previous-generation Chevrolet Corvettes in the U.S., for loss of low-beam head lamps. Another 3,054 are in Canada and 5,677 more were exported. In addition, 103,158 newer Corvettes that might have the same problem get the fix in what GM calls a customer satisfaction program.
- 19,225 Cadillac CTS 2013-2014 models for windshield wiper failures. Another 732 are in Canada, 94 in Mexico and 1,512 were exported.
- 140,067 Chevrolet Malibus from the 2014 model year for hydraulic brake booster malfunctions. Canada has another 732 and Mexico has 1,163.
And here is where GM has been skimping on production and quality control costs:
The taillight problem that is the biggest group in the recall involves 2004-2012 Chevrolet Malibu, 2004-2007 Chevrolet Malibu Maxx, 2005-2010 Pontiac G6 and 2007-2010 Saturn Aura models. GM says their brake-lamp wiring harness has to be modified.
GM says corrosion causes the brake-light fault, which also can disable the cruise control, traction control, electronic stability control and panic braking assist feature.
The automaker says it knows of several hundred complaints, 13 crashes and two injuries, but no fatalities as a result of the condition. The company issued a technical service bulletin concerning the problem in 2008, and recalled a small group of 2005 model-year cars in January 2009.
The Corvette recall is because the low-beam headlights can quit working. Models from 2008-2013 with the same flaw will be covered under what GM calls a customer satisfaction program.
GM knows of several hundred complaints as result of the condition but no crashes, injuries or fatalities.
The Cadillac CTS has a potential fault that can cause the windshield wiper system to quit working after a jump start when the wipers have been left on but are restricted, such as by ice and snow. Dealers will replace the wiper module free of charge. GM is unaware of any crashes or injuries due to the condition.
The bttom line: this most recent recall GM brings the total number of recalls for 2014 alone to 24 and includes 12.8 million vehicles worldwide, 11.2 million of those in the U.S. (remember: recall charges are "one-time" and should certainly be added back to non-GAAP EPS). This compares to less than 1 million recalls in all of 2013 - one wonders just how many potential accidents GM swept under the rug last year and how many more (millions) are coming?
That said, we increasingly fail to see any notable differences between the old and new GM. All that's left now is for GM to release an anniversary edition of the Aztec and the anti-metamorphosis will be complete.
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GM bankruptcy part two in 5...4...3...2...1...
Absolutely worst pieces of crap ever produced.
Ever own a Pinto?
Narrator: A new car built by my company leaves somewhere traveling at 60 mph. The rear differential locks up. The car crashes and burns with everyone trapped inside. Now, should we initiate a recall? Take the number of vehicles in the field, A, multiply by the probable rate of failure, B, multiply by the average out-of-court settlement, C. A times B times C equals X. If X is less than the cost of a recall, we don't do one.
Business woman on plane: Are there a lot of these kinds of accidents?
Narrator: You wouldn't believe.
Business woman on plane: Which car company do you work for?
Narrator: A major one.
Too bad we couldn't recall Congress and the White House, send them all to the scrap heap.
Total Recall?
GM auto purchaser to dealer: "I'll be baaaaaack."
Another reason I hate new cars. The Law of Unintended Consequences cannot be denied. The more complex the system, the more the law, as well as entropy, will eat your lunch.
My '92 Dodge Ram still purrs like a kitten.
Buyer beware.
Government Motors = Broken Car Fallacy
GM buyers are the lowest of the low and deserve both the cars and Government they have!! Any car company who names a car "Malibu" is a red flag.
the actual reason for the recall is so we can equip each vehicle with a LEO-activated shut-off device
for your safety and protection
hugs,
abuquerquepd
by "shut-off" is meant "self-destruct"
com-on, wipers?
Time to call in the Terminator, perhaps.
My red flag was cars with names like "Sonata", "Applause", and "Charade". WTF?????????
eh, new cars are like new anything. Early mk 1's have bugs because field wear is much different than trial/simulation wear. GM however vs. BMW, Ford and any other applied science never adopted high sigma culture. In fact, that was one of Lutz's biggest gripes about working at The General was beancounters dominated the place; in Detroitspeak that translates directly into quality & performance was a non issue over glamour/promotes to juice shareholder returns.
Like a shitty REIT using financial gearing to wallpaper over crap property upkeep & customer service, everyone in the know has known GM is the Yugo of the automotive world.
If you look at Barra's track record some of the worst products for quality and execution (Aztek?) were under her watch. Which begs the question 1.) Why was every institutional pinhead going long GM ? If everyone should have conducted due diligence on the quality of their product vs. peers (or just spoke to a gearhead) what made the story so compelling ? It could not have been due to market demand, margins or sales. ie. "fundamentals". 2.) At what point did the big boys learn or know products were being sold slipshod via channel stuffing to goose ROE's 3.) Did the government and their respective unions know about these issues pre-Ch11. and if so, did unions actively supress whistleblowers to keep jobs ? Did their union votes for Obama have anything to do with papering over the quality issues ?
I think any or all of the 3 above questions would have some very interesting implications.
Fun fact: Check how much legal contra-account expenses GM keeps for lawsuits on the sheet. Now if every car carries a cash settlement of at least 45,000.00 (the fact they KNEW they were going to sell you a bad car, and agreed to carry that liability forward with New-CO GM) how many bad cars will they be found libel for before it hits eps.
1995 Honda Civic. Starts everytime and runs like a champ no matter how hard I beat on it.
And the Supreme Treasonists Court - fuck those fuckers.
Once a POS, always a POS.
a pair of pintos look like hillary's ankles
HILLARY! works out 'every week'...
Yea, bumping fuzz with her new "interns".
Where is my mind eraser. Image... to... damaging... Goes for the whiskey bottle.
AHHHHHHHHHHH
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This'll set you right in a jiffy: http://eyebleach.us
Ask a Brazilian if he owns a Pinto, and you might get punched in the face. (Pinto is Brazilian slang for small dick)
Actually, I did have a Pinto....once agina the media overhyped how dangerous it really was...the idiot had the gas cap off and was rammed from behind from a complete stop at 60 mph....another "journalist" shill tryihng to make a name for themselves....similar to the Ford Explorere situation, wher the mexicans kept their tires under-inflated....of course the american population is too stupid to look into the details....
All my friends rollover in low-riders.
They knew about the concerns before production, and the cost to modify would have been $11 per car. Whether there were >500 deaths or ~27 from rear end collisions is disputed.
http://en.wikipedia.org/wiki/Ford_Pinto
No, but I owned a Vega.
Gummint Motors: The company makes nothing I want to own or drive.
At least most of the recalls are still sitting on dealer lots.
...and municipal worker garages.
Nah, ours come from Ford fleet sales.
Give 'em a break. The motor car is only about a hundred years old and as such is a relatively new invention. We can't expect them to have perfected such intricate technology like steering, brakes and indicators yet!
Err, tell me again. How do we fuck up stuff that we invented and had working perfectly 50 years ago?
New TV series: "GM - Breaking Bad"
Hey look on the bright side. I bet 2.5 million of them are still sitting on the channel stuffed dealers lots. :)
"Absolutely worst pieces of crap ever produced."
<ahem>
https://upload.wikimedia.org/wikipedia/commons/f/f0/AMC_Pacer_1975-1978.jpg
http://blog.hemmings.com/wp-content/uploads//2011/05/1973AMCGremlin_02_7...
My Marine Corps recruiter had a lime green Pacer. I only had to take him home twice.
I have noticed many newer model GM products with tail lights out on them. I find this odd because I drive Japanese cars and have 2 over 10 years old that never had a bulb replaced. I'm talking about 2011-2013 model GM's with a light out. Cheap shit- junk ass government motors. Fuck You GM
One wonders what Volt recalls look like.
I don't remember
recalls in the teens would be a majority of the fleet
I'm sure there's another endless bailout for Gubment Motors...TBTF is all that matters.
Seems like "back to the Future" IMHO.....
Maybe Obama can give away a GM car with every Obamaphone. The community organizer can solve every problem if he throws enough of your money at it.
http://www.vincelewis.net/unsoldcars.html
they can replace them with some of these.
I call dibs on that red one!
What worries me is that they will stop producing replacement parts so we will no longer be able to repair our current vehicles and will then be forced to buy something else.
You don;t have to worry. My sister has a Chevy Cobalt that has had 3 recalls so far. The last one over faulty ignitions switches that have caused some deaths
She took it in and they told here they have not even made the parts yet and would call when they got them made and that was 2 months ago. I guess they are waiting for more crash litigation. She gets another letter last week telling her not to use a keyring with keys or extra weight but a single key while until they get the parts made.
One of the other recalls was over a plastic part on the fuel lines that cracks and starts leaking gas causing potential fires. The recall letter atually said that this is only on some cars so do not bring it in unless you smell gas. WRONG, I took it in and I told them to replace not now, but yesterday. UNFuckingbelievable.
There is a reason you do not bail out companies and let them go bankrupt.
The "Big Three"; chrysler, ford, GM all produced COMBINED 7,000,000 units in 2013. NOW GM states thye have recalled almost 24 ,000,000???
If that does not scream bankruptcy AND the fact you shud RUN and not walk away from all stock for GM I do not know what does.
caddys might get cheap
They're already cheap - just not to buy.
I have only owned two over-hyped POS's in my life so far. One was a Cadillac.
The other was a Japanese car.
But what you don't take into account is that .gov has an unlimited amount of $$ to use to prop up the stock price. TBTF. That is, until one day, they don't
40 years now of Japanese and German competition wiping the USA's collective asses. What is so hard about taking 3 models of each into a hanger with a micrometer (or 3-D printing machine), disassembling it and loading it into CAd so that with some modifications to the outside, we actually create a car that stays together...my god, in this time Saturn was created to compete with them and it had to be shit-canned after 2 decades...what does that say...let em go down, propping up these lumbering pension plans pretending to be car makers is making the USA act like France; constructive destruction of capitalism is dying a fast death in the US and it is killing this country.
When you print the reserve currency you must surrender your manufacturing (or no one will be able to get the reserve currecny)...ask Bob Triffin, he saw this in 1960.
As we lose the reserve we will gain the ability to export (indeed we must to survive).
This will be a hard transition for us and for all current holders of the reserve....ie the whole world.
When real settlement is again the norm I think we will be competitive again. It just can't happen while we get stuff for a 50% discount by using our ability to print the reserve at no real short term cost.
I agree with what you are saying, but it is not we whom will benfit after our wage rates have been crushed by inflation.
Toyota has just as many or more recalls. Factory recalls have a lot to do with good quality of service and more to do with getting the car owners back to the dealers so they can sell you a lot more services.
http://toyotanews.pressroom.toyota.com/section_display.cfm?section_id=639
The only problem is that Toyota gets a pass for being a non-American car assembler.
Maybe GM could sell their cars in China - I bet people there would be thrilled to have them.
Entitled Americans - they deserve Detroit.
Eskimos don't have too many cars. Maybe with the right financing incentives, they'll bite!
The bootleg GM cars built in China are better quality than the actual GM cars haha
Loving my Hyundai
My wife had a 2000 Sonata that was awesome. She was T-boned by some broad on her cell phone who blew a light and she walked away with a small cut on her arm from the seatbelt and some ringing ears from the airbags. Both cars were totaled but there was very little pentration into the passenger compartment while the other car's engine and drivetrain were pushed back and broke the other person's leg. It was very well built. The front A-arms were heavy duty cast pieces as was much of the car, and it was easy to work on. To get the oil filter off you just had to turn the wheels full lock to the left and reach in the wheelwell to unscrew it. Geez that was a sweet ride.
She now drive a Buick Enclave to haul the tribe. It's got less than 25K and the drivers side door squeeks and is out of alignment like a 20 year-old Grand Prix.
I went from a 2006 Benz AMG (over 100k new, I bought used in 2010) to a 2011 Sonata. The Benz was luxury in it's day. I liked the Hyundai better. It was a 'top of the line' Sonata but for 70k difference I'll take 3 Sonatas any time.
Now I have their Santa Fe. It too is just what it should be. A very drivable, trouble free small SUV with a peppy 2.0 turbo and AWD. At just over 30k I feel like I got a good deal and a very serviceble vehicle.
2011 Sonata is mine also, no problems
Wife has a 2006 Tuscon, no problems
change oil, fill with gas, brake pads and wash the fucker once a year
A culture of cutting corners.
It wasn't always that way; started around 1970.
around August 15th 1971 ...maybe??
GMC... Get My Coveralls...
I want that car on the picture!
Bold design. It will be a car show and a collector's item in the not too distant future.
Not that it is attractive or a great vehicle, but a marker in time like the Corvair or the AMC Pacer.
http://ericpetersautos.com/2014/04/25/rearview-pontiac-aztek/
Are you shittin me?
No, not shippin', either.
How many of those are sitting unsold somewhere?
http://www.businessweek.com/articles/2013-07-31/american-automobile-glut...
Recalling your own, unsold inventory. Priceless.
AND HENCEFORTH, this Era shall have a Nayme;
FOR syuchly it shall be studyed by studenth and journalitth forevyre;
and that Nayme shall henceforth be pronunceth and writeth syuchley AS:
RECALLMAGEDDON
And the hood rats keep buyin em.
Can someone please explain to me the fascination black people have with chrysler 300's? WTF?
They black ass don fit in no DAMN TOYOTA!
Sounds like whoever is in charge has decided its better to confront the problems than try to cover them up. At least that's one small step in the right direction.
Brakes, lights, wipers, steering. Don't worry, when GM get the next bailout they'll be able to tweak these minor issues and taxpayers will be eligible for 20% off list price for a new vehicle.
Some Italian dude said something about the merging of corporations and the state IIRC.
Brakes, lights, wipers, steering......
Just a little shoddier construction and it will be easier to just list the parts that aren't getting recalled.
Government Motors. What could possibly go wrong?
HOW CAN THIS BE?!! They were TBTF!! They can't be this crappy, not after the last Boosh AND the Boy King Obama both signed off on their status and gave them billions!
And the Yanks think they can fight a war against Russia and win !!
I see this as a win for GM and the unions, they'll just send the majority of the recalls to the scrap yard, receive another bailout and fire up the assembly lines. #winning
Government Motors (GM) reminds one of Zil motors in Russia/ Old Soviet union.
http://www.leftlanenews.com/zil-4112-r.html
Obama can thow a car in if the EBT crowd comes out to vote for his party in November. Lookin might fine driving to the welfare office with your Obama phone and your Caddy.
Swap out the Russian drivetrain for a capable GM/Ford equivalent, shorten it a 4-door version, and you have a close copy of what Ford deemed too American to make - the Crown Victoria.
GM sucks. My previous GM product was my last. Piece of shit. Same with Chrysler - they suck worse.
Chryslers have a problem now with drinking a quart of oil every 1,000 miles. The dealer and Chrysler says it's normal.
What garbage.
HA! The Chevy dealer gave my mother a new Malibu weeks ago to drive until her Pontiac G5 could be repaired. They have the Pontiacs parked on the lot just waiting for the fix. They will end up keeping the recalls, calling it a loss, and sending them to South America.
So out of the 3 main things a car is supposed to do, ie:
1) Stop
2) Go
3) Steer
They cant get 2 out of 3 right. Fuckwits.
Maybe they should start selling donkeys instead. At least the engineering is already done for them.
My 06 Accord (built in tennessee bitches) has 151k miles on it. Runs beautifully and is very clean outside of the random cheerios from the kids in the back
3m cars is a lot...has GM made a car thathas not been recalled in the last 5 years?
what a piece of shit
What's the problem? Most new cars are sitting on "stuffed channel" lots and pose no problem...It seems that the people flocking to the dealers with NO cash, savings, etc. are getting to buy NO-Cars - "NO-they don't run long"....
Unions, bailouts, regulations, and now obligations to replace parts on cars that fail after many years of use or be attacked by government or sued. I drove a car that I bought for $300 for many years. Sometimes all the brakes worked, sometimes they didn't. Sometimes I had to jam a screwdriver in the carburetor, sometimes I didn't. When it didn't start, I put my feet through the floor like Fred Flintstone. Americans these days.
GM is run by accountants with MBA's.
They fucking hate engineers. They laid off most of their talented engineers in the late 90's.
Japan and Germany love engineering, they are powerhouse countries for engineering.
America hates engineers, they love doctors and lawyers, but hate engineers.
This is why I bought Toyota, not GM. GM treats it's engineers like shit, the lawyers and MBA's at GM do great though.
Until America kicks this jewish idea that lawyers and doctors are gods, and everyone else is shit, they will continue to decline.
Then you look at their cars and wonder how they made it more expensive to maintain/repair the underpowered engines in them.
After I will have paid back my last bank debt €, I might save and get myself a C5 Corvette, maybe with a Procharger. Of all things American, at this time I like best Blues music and Chevrolet cars, particularly from the 60s and I already have 1967 Vette. (I am not into guns.) Russia has better porn models and brighter politicians.
C6 for me or a C7...but I love the 2014 Mustang 5.0's as well.
I bought a brand new 055 chevy colorado. It was in the shop 13 times for warentee work and I traded it off with less than 30k miles on it.
Heater twice, radio 3 times, lights 2 times, front end leak 1 time, rear end nioise issues (grinding) 2 times, accelerating for no reason while driving down the hiway 1 time..... There is more but cannot remember that nightmare any more.
It cured me.... No more guvment moters ever!!!!
Gm cars and trucks are mostly assembled in Silao Mexico nowadays, that is the central hub for assembly. GM like most corps, hire inferior 3rd world labor. My last GM vehicle was a 2011 Silverado. I sold it 2 years later, was a huge pos. Paint was fading on the bed, the fucker actually stopped running (bad ecu), and it was burning oil every 5k. No GM for me ever again, except for a Stingray. Hey GM I know you wont read this but FUCK YOU.
The US really looks like the ol soviet union now, GM is the new old Russian Lada LOlz http://img.photobucket.com/albums/v393/youricarma/Miscellaneous/Colligno...
Fuck these GM idiots and the garbage cars they try to sell. For 20 years I always bought GM and in 2008 even invested in their bonds when they got in trouble because I thought it was the "American" thing to do. These asshats sold me a piece of crap car and got a corrupt bankruptcy judge to say my bonds were subordinate (worthless) against junior claims from their POS union called the UAW.
Screw GM, screw the UAW, screw that hellhole called Detroit and screw both Bush and Obama.
I only have a Honda and a Toyota in my garage now, made in Ohio and Kentucky. GM and their Mexican and Chinese made garbage cars can fuck off.
Those transplant cars aren't even American unless you forget all the Japanese designs and all other foreign input. Perhaps when Japan decides to stop making rice burning golfcarts and more (turboless) American-sized vehicles, there might be a chance. Mashing the pedal with a non-globalized GM car reliably presents a deep, uniquely American response from the engine - yet to be matched for the same amount of money by any transplant manufacturer.
All your complaints just make the fine General Motors vehicles that much more accessible to the Rest of Us. Feel free to choose a bland car or terrorwagon, but I'm making mine American - which means GM, Chrysler, and pre-Mulally Ford.
I've met people like you, and they are all from Michigan.
Can the US gubmint fine itself (GM) like it did Toyota? Why bother.
TBTF&F&F&F&F&F&F
I know that this is not possible for all. But I must say, I do not miss owning a vehicle one iota. The headaches and cost totally eclipse the driving rush.
I got rid of mine for one of those ancient box looking things with long poles that gets carried except I use illegals to tote mine around. Its worked out pretty good till they see a taco food truck then the ride gets a little bumpy.
Another "let's pile on General Motors" article. How about contrasting this to the carte blanche given to Toyota for their recalls?
I dont recall having to bail Toyota out.
That still doesn't give Toyota a pass on anything.
At the very least, the bailout preserved the manufacturers(General Motors, Chrysler) that make something more than a golfcart for the average person. If there were other manufacturers that would be willing to make cars the Detroit way (American sized, priced, and performing vehicles over transplant/import golfcarts).
No one else will step up because they know it's not a profitable biz. GM/Chrysler are corporate welfare basket cases.
I'd have to call complete bollocks on that one given the lack of data.
The American auto industry is subsidized. Period.
I still get a kick out of Stansberry's fake GM letters to shareholders
http://www.dailywealth.com/2530/an-honest-letter-from-the-chairman-of-ge...
GM only sold 477 pickup trucks?
Yikes... good night sweet prince!
Fuck you and your shitty cars, GM.
With half their vehicles under recall and the other half sitting in the grass at the dealer lots, there won't be a single GM vehicle on the road!
this is great news.
get those high CO2 emitting vehicles off the roads!
I have a strange suspicion that the wave of recent recalls is due to government prodding so as to stimulate the economy
Every car manufacturer has technical and quality issues. Yes, even the fancy overpriced ones. Toymafiaota was king of sweeping potential recalls under the rug. And the media was complicit.
For those who relish in bashing GM for past problems (well deserved) be careful what you wish for.....GM's economic impact reaches into every state & almost every community with REAL JOBS that contribute back into these same communities. IF GM fails...this country fails. Keep shipping US dollars overseas when you buy those BMW's and Toyotas - your kids better learn German and Japanese becuase they will become our economic masters (behind the Chinese).