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?

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Tue, 05/20/2014 - 11:50 | 4777696 NotApplicable
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.


Tue, 05/20/2014 - 11:56 | 4777717 knukles
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

Tue, 05/20/2014 - 12:11 | 4777786 American Dreams
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


Tue, 05/20/2014 - 12:14 | 4777796 doomandbloom
doomandbloom's picture


Tue, 05/20/2014 - 12:20 | 4777825 StacksOnStacks
StacksOnStacks's picture

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

Tue, 05/20/2014 - 13:43 | 4778097 economics9698
economics9698's picture

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

Tue, 05/20/2014 - 12:35 | 4777862 rubiconsolutions
rubiconsolutions's picture

Automotive backwardation. Or bastardization.

Tue, 05/20/2014 - 12:43 | 4777885 onewayticket2
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.

Tue, 05/20/2014 - 12:15 | 4777797 TBT or not TBT
TBT or not TBT's picture

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

Tue, 05/20/2014 - 12:17 | 4777804 rlouis
rlouis's picture

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

Tue, 05/20/2014 - 12:19 | 4777815 max2205
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



Tue, 05/20/2014 - 12:32 | 4777854 thatthingcanfly
thatthingcanfly's picture

What's an "Ect?"

Why did you list two of them?

Tue, 05/20/2014 - 15:23 | 4778495 drendebe10
drendebe10's picture

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

Tue, 05/20/2014 - 19:55 | 4779317 mrpxsytin
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. 

Tue, 05/20/2014 - 12:13 | 4777791 Headbanger
Headbanger's picture

What about all the Toyota recalls last year?? 

Was that the largest in history?

Tue, 05/20/2014 - 12:20 | 4777817 TBT or not TBT
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.

Tue, 05/20/2014 - 12:03 | 4777761 thatthingcanfly
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?

Tue, 05/20/2014 - 12:22 | 4777830 NotApplicable
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)

Tue, 05/20/2014 - 17:49 | 4777874 Froman
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.  


Tue, 05/20/2014 - 12:41 | 4777879 Citxmech
Citxmech's picture

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

Tue, 05/20/2014 - 12:48 | 4777904 fallout11
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. 

Tue, 05/20/2014 - 13:38 | 4778070 NOTW777
NOTW777's picture

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

Tue, 05/20/2014 - 12:05 | 4777767 Son of Loki
Son of Loki's picture

"Hecho in Merika"

Tue, 05/20/2014 - 12:19 | 4777816 rlouis
rlouis's picture

too sa

Tue, 05/20/2014 - 12:23 | 4777832 yrbmegr
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.

Tue, 05/20/2014 - 15:21 | 4778489 drendebe10
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...

Tue, 05/20/2014 - 11:47 | 4777697 knukles
knukles's picture

Obamamobiles & Pelosimobiles brought to you proudly by Government Motors

Tue, 05/20/2014 - 11:51 | 4777718 dontgoforit
dontgoforit's picture

Don't forget the Stoogebidens!

Tue, 05/20/2014 - 12:06 | 4777746 Emergency Ward
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.]

Tue, 05/20/2014 - 12:25 | 4777836 TBT or not TBT
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.

Tue, 05/20/2014 - 12:51 | 4777918 fallout11
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.

Tue, 05/20/2014 - 12:52 | 4777919 oklaboy
oklaboy's picture

break out the marhmellow, it's campfire time

Tue, 05/20/2014 - 13:56 | 4778121 813kml
813kml's picture

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

Tue, 05/20/2014 - 13:43 | 4778094 813kml
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.

Tue, 05/20/2014 - 11:46 | 4777698 LawsofPhysics
LawsofPhysics's picture

and yet they remain in business...

moral hazard?  accotuntability?

tick tock motherfuckers...

Tue, 05/20/2014 - 11:59 | 4777740 disabledvet
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.

Tue, 05/20/2014 - 11:47 | 4777702 RacerX
RacerX's picture

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

Tue, 05/20/2014 - 11:47 | 4777703 goldhedge
goldhedge's picture

"American Built"

Tue, 05/20/2014 - 11:53 | 4777728 Theta_Burn
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...

Tue, 05/20/2014 - 11:48 | 4777704 Loucleve
Loucleve's picture

I guess this explains the minimal $35 mm fine.

This is gonna be expensive!

Tue, 05/20/2014 - 11:50 | 4777708 highly debtful
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. 

Tue, 05/20/2014 - 11:59 | 4777744 Uncle Remus
Uncle Remus's picture

In Russia, car recall you to your maker.

Tue, 05/20/2014 - 12:01 | 4777711 Squid Viscous
Squid Viscous's picture

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

Tue, 05/20/2014 - 12:07 | 4777771 Son of Loki
Son of Loki's picture

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

Tue, 05/20/2014 - 13:45 | 4778107 813kml
813kml's picture

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

Tue, 05/20/2014 - 11:50 | 4777715 Dr. Engali
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.

Tue, 05/20/2014 - 11:53 | 4777723 dontgoforit
dontgoforit's picture

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

Tue, 05/20/2014 - 12:08 | 4777778 Comte d'herblay
Comte d'herblay's picture

I've never seen anything on ZH about NASCAR. 

Tue, 05/20/2014 - 11:55 | 4777730 Flakmeister
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...

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