Barclays: GM Recall Parade To Last Into Mid-Summer
Automotive News reports General Motors’ recall parade could, according to Barclays Capital analyst Brian Johnson, last well into the middle of the summer season. The data mining conducted by the automaker’s team of 60 safety investigators on 10 sources reporting potential problems — including consumer complaints and reports from its dealership network — will likely bring more recall requests before GM’s senior executives. Johnson adds that the investigators are working on likely defects on a per-issue basis instead of per-vehicle, which may mean a number of vehicles will be called back multiple times as the recall parade marches on; he also notes that its hard to discern if recalls of past vehicles have already peaked.
Detroit Free Press says GM product chief Mark Reuss will be leading a new team of five execs in choosing who all will be on the parade route, determining when and if a recall should be issued on any given vehicle with a potential problem. The team’s creation aims to accelerate the automaker’s response to said safety concerns, as well as better enable communication with its consumer base and the federal government. In addition, the 60 investigators, led by global safety boss Jeff Boyer, will comb social media to gather evidence of problems that haven’t been found from within.
Over in Canada, Reuters reports government officials are investigating GM Canada over the possibility that, much like the mothership across the border, it, too, delayed product recalls. Transport Minister Lisa Raitt instructed her group of officials to ask GM Canada “when did they find out” about the out-of-spec ignition switch, proclaiming that if they knew before the recall was issued, the Canadian subsidiary “could be in violation of the Motor Vehicle Safety Act.” If found guilty, GM Canada could be fined anywhere between $100,000 and $1 million CAN depending on the conviction issued, far less than the $35 million levied against GM by the National Highway Traffic Safety Administration earlier this month.
The Detroit News reports those affected by the recalls of newer vehicles, including the 2014 Cadillac CTS and 2015 Chevrolet Tahoe, are receiving free loaner vehicles much like those affected by the February 2014 ignition switch recall. In the case of Cadillac, however, the free loaners are standard practice for recalls related to the brand’s products, as they fall under warranty. Meanwhile, the Chevrolet and GMC loaner programs, according to spokeswoman Ryndee Carney, was at the automaker’s discretion; as the recall involves tie-rod defects — including a park-it-now notice — GM made the decision “to offer owners of those trucks courtesy transportation.”
Finally, Automotive News says those who purchase a 2015 Chevrolet Impala with the base 2.5-liter four-cylinder will include stop-start technology as standard equipment, which aims to boost the engine’s fuel efficiency by 5 percent. According to spokesman Chad Lyons, the stop-start tech “will become more prevalent in GM vehicles” as time goes on; the 2.5-liter Impala is the second to have the tech standard, after the 2014 Malibu. Those who prefer their Impala to come with more power via the 3.6-liter V6, stop-start won’t be available standard due the engine’s heavier weight negating potential fuel savings.
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What makes something defective vs. simply being worn out. This brings to mind Jeeps with rusting fuel tank straps/supports. Is this normal wear? Where do you draw the line? Many of the recalls I see seem to be things that have worn out faster than expected, but are not necessarily defective.
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