Following Latest Recall Shocker, GM Has Recalled 56% More Cars In 2014 Than It Sold In 2013

Tyler Durden's picture

They don't call them Government Motors for nothing.

Over the weekend we titled our summary of GM's unprecedented avalanche of recalls so far in 2014 - the year in which the company's criminal practice of covering up its faulty products became a congressional scandal -  as follows: "GM Set To Surpass Total Recall Record This Year." Three days later we are happy to report that while Detroit, we not only have a big recall problem, we also have a new record, after moments ago GM just announced another 4 recalls affecting 2.4 million cars.

This brings the total number of vehicle investigations since the start of the year to 35, and with today's four latest fiascos, has initiated a whopping 29 recalls. More importantly, this also means that the number of domestic recalls rises to 13.6 million, smashing the previous record of 11.8 million recalls in 2004, and brings the number of global recalls to 15.2 million: or a stunning 56% greater than the 9.7 million cars GM sold in all of 2013!

As was expected, as part of today's most recent recall, GM took yet another charge, this time for $200 million. But don't worry: hedge fund pandering sell-side analysts everywhere will be sure to addback these recurring "non-recurring" charges to EPS and all shall be well.

Here are the highlights from today's announcement:

In a continuing effort to quickly address emerging safety issues, General Motors announced today it is recalling about 2.42 million vehicles in four separate U.S. recalls. The recalls are for:

  • 1,339,355 Buick Enclave, Chevrolet Traverse, GMC Acadia full-size crossovers from the 2009-2014 model years and Saturn Outlooks from 2009-2010 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.
  • 1,075,102 of the previous generation 4-speed automatic transmission Chevrolet Malibu and from the 2004-2008 model years and Pontiac G6 from the 2005-2008 model years  because of a shift cable that could wear out over time, resulting in mismatches of the gear position indicated by the shift lever. 
  • 1,402 Cadillac Escalades and Escalade ESVs from the 2015 model year because an insufficiently heated plastic weld that attaches the passenger side air bag to the instrument panel assembly could result in a partial deployment of the air bag in the event of a crash.
  • 58 Chevrolet Silverado HD and GMC Sierra HD full-size 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.

GM has added 35 product investigators since the beginning of 2014, and, including those announced today, has initiated 29 safety and non-compliance recalls in the U.S. so far this year. Two of the recalls involve fewer than 100 vehicles.


* * *


GM stopped sale of the 2015 Escalade and Escalade ESV and sent overnight letters, called and emailed the 224 customers who had taken delivery of the vehicles and instructed them to not let occupants sit in the front passenger seat until the vehicle has been serviced. GM knows of no crashes or injuries associated with the Escalades.


* * *


GM expects to take a charge of up to approximately $400 million in the second quarter, primarily for the cost of recall-related repairs announced in the quarter. This amount includes a previously disclosed $200 million charge for the five recalls announced May 16.

Here is the full list of recalls announced just in 2014. Considering we are barely five months into the year, expect this to grow substantially by the end of the year.


And the chart that puts it all in context: the amount of recalls in the first five months of 2014 alone is more than 15 times greater than the total recalls announced in 2013, and is 70% greater than the total number of recalls announced in the prior five years combined!

Once upon a time, executives would lose their jobs for such an unprecedented, and ongoing fuck up not to mention criminal cover up. But this is the New Normal, in which this company only exists because of the government's blessing. And one certainly wouldn't want to imply that once the government gets involved in the private sector all hell breaks loose, now would one?

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
NotApplicable's picture

Perfect timing!

Hey Tyler, look at this, HuffPo is claiming they've debunked the recent "cars on lots" conspiracy story. Cuz they're still "selling" them, duh. LOL

At least they didn't call ZH a low-brow, fringe blog.


knukles's picture

Good God, man!
On the verge, the cusp of heresy!
for what I have no idea, but that matters naught anymore, no?


PS  Take a look at the list above or older press articles of the recalls.  The Cruze has been listed in a number of recalls.  The Cruze platform is the one and same for the Volt.  The recalls are for front wheels falling off, ignition and such.  But Note No Volt Recalls

Shit shit shit shit shit shit

American Dreams's picture

None of this business of recalls matters.  GM will keep making more cars, paying union labor, channel stuffing its dealers, and finally parking said unsold cars until they rot from weather exposure.  Then send the undriveable vehicles to government approved and supported recyclers that will process the metals, plastic and rubber.  The recyclers then sends all the recycled materials back into the manufacturing cycle of government approved and supported automobile builders.  This continues until the energy and wages to produce the "auto" becomes to much of a burden on the host system, which, if looked at hard enough, may be never.  

American Dreams


StacksOnStacks's picture

I've heard of Broken Windows but Broken Cars?  They just look desperate now.

economics9698's picture

If it was Toyota this would be front page NYT’s.

rubiconsolutions's picture

Automotive backwardation. Or bastardization.

onewayticket2's picture

Now we know how they hit profit targets....


....when you have an implied backstop, why not take risk with crappy parts?  Barry's got your back.

TBT or not TBT's picture

The UAW has done such wonderful things for our republic. Take Barack Obama, please.

rlouis's picture

Thanks to non-GAAP accounting, none of this really matters.

max2205's picture

Feds can now rig the deatb numbers througg




Health care


Auto safety

Air safety


FSA uprisings

Race card

Corp tax

Corp political contributions

Govt blackmail via spying

Market rig

Monopoly price fixing



thatthingcanfly's picture

What's an "Ect?"

Why did you list two of them?

drendebe10's picture

Electroconvulstive therapy.... shock the brain of psychiatric patients...

mrpxsytin's picture

It is definitely not good. But I prefer .gov to be making millions of cars than having those factories pumping out millions of tanks, fighter jets, war vessels, etc. We know where that ends. Enjoy the car making phase while it lasts. 

Headbanger's picture

What about all the Toyota recalls last year?? 

Was that the largest in history?

TBT or not TBT's picture

The MSM lets us know when non-UAW car makers have done wrong to us, and the federal regulators are extra attentive to outing their offenses.

thatthingcanfly's picture

That huffpost arcicle was the lamest effort at debunking I've ever read. They made no counterpoints to the central argument, but rather just said that the photos were dated, spouted off a few "sales" numbers from the auto manufacturers, and concluded with a, "they wouldn't do that now, would they?" rhetorical device.

Unbelievable. Do these journalists not take ANY critical thinking or debate classes?

NotApplicable's picture

That's what makes it all so sad/beautiful to watch.

All they know is character assasination and...


...never mind.

That's all they know.

(as that's all they need to know for their "enlightened" audience)

Froman's picture

...this was surprising coming from that beacon of journalistic integrity and paragon of objective reporting, with absolutely no agenda, we have come to know as huffpost.  


Citxmech's picture

A grade above a C- in "Critical Thinking" probably gets you disqualified from being hired.

fallout11's picture has covered the huge lots of unsold, channel-stuffed vehicles as far back as 2005, with rather meticulous investigation and evidence. Nothing new here, only the scope and scale of the problem. 

NOTW777's picture

they are not "journalists"; they are advocates & idol worshippers

yrbmegr's picture

They let the air out of their own debunking story by admitting the photos are compelling and that other industries do the same thing.

drendebe10's picture

Additional proof that anything the gummint sticks its nose into turns into a big doodoo pile... wait til obamascare kicks in fully....  Phoenx VA style care for everyone...

knukles's picture

Obamamobiles & Pelosimobiles brought to you proudly by Government Motors

dontgoforit's picture

Don't forget the Stoogebidens!

Emergency Ward's picture

For the 2016 Presidential Campaign, Hillary and Joe will promise not two, but three Chevy Volts for every garage.


[Jeb and Chris might promise four.]

TBT or not TBT's picture

But they're shutting down the coal plants that make the things go. Not too good at math and science, these science-is-settled types.

fallout11's picture

Helps to create brownouts, so they can further "deregulate" the electricity producers for more short term profiteering, financialization, sweetheart deals, then enact some more socialist legislation when the vox populi clamor for them to "do something!". Hegelian dialectic at work again.

oklaboy's picture

break out the marhmellow, it's campfire time

813kml's picture

It would take at least four Volts to haul Christie's fat ass and sense of entitlement around.

813kml's picture

I'm still waiting to get my hands on a Studebiden, just like its namesake it has a fancy grill and no power.

LawsofPhysics's picture

and yet they remain in business...

moral hazard?  accotuntability?

tick tock motherfuckers...

disabledvet's picture

Treasury just exited the taxpayer's position in December. Coincidence?

I mean who doesn't love debt issuance "for no good business purpose" again? This thing sounds more like the Hatfields and the McCoy's by the day.

RacerX's picture

It's sad how Life Imitates Art in the New Normal. Things like this are almost directly out of Atlas Shrugged.

goldhedge's picture

"American Built"

Theta_Burn's picture


Just American assembled with low bid foreign manufactured components, as all cars are.. the question really is about quality control and upper management oversite. promotions and raises for all the heads of these departments (like our Gov.) should get them back on track...

Loucleve's picture

I guess this explains the minimal $35 mm fine.

This is gonna be expensive!

highly debtful's picture

Our second car is a 1994 Lada Samara 1,1 litre. Shit to look at and horribly finished. But at least it starts every single time I turn the key. And the Russians don't do car recalls. I suppose that would be a never ending story. 

Uncle Remus's picture

In Russia, car recall you to your maker.

Squid Viscous's picture

Thanks Obozo for letting GM survive to continue making shit cars, and the occasional death trap!

Son of Loki's picture

Squid, just dont turn the ignition on and you'll be safe.

813kml's picture

The CIA should be able to use them for assassination attempts, they come pre-wired to explode.

Dr. Engali's picture

Now that GM has a woman at the helm any charge of incompetence will be labeled as misogynistic, just as any disagreement with Zero's policies is labeled as racism.

dontgoforit's picture

Heh, heh, heh....bumper cars comes to mind.

Comte d'herblay's picture

I've never seen anything on ZH about NASCAR. 

Flakmeister's picture

Didn't some guy names Tainter write about the decreasing marginal gains from increasing complexity?

This is a real time demonstration of sorts...