Will GM Have to Recall 400,000 Vehicles?

  • Like on Facebook
  • Share on Google+
  • Share on LinkedIn

U.S. safety regulators are inquiring as to whether 400,000 General Motors (NYSE:GM) vehicles need to be recalled due to problems with defective airbags.

GM has already recalled over 6,800 of the vehicles in question in two separate recalls, one that took place in October and one in January. The vehicles in question include the Chevrolet Cruz, Sonic, and Camaro, and the Buick Verano.

NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW!

The recall was ordered¬†due to an electrical defect that stopped the main front driver’s airbag from inflating upon impact. If the airbags don’t inflate, the driver could be injured in a crash, although no crashes or injuries related to the problem have been reported. GM stated in previous recall documents that if the electrical problem occurs, the airbag warning light will turn on.

The first recall issued by GM covered about 3,000 Cruz, Sonic, and Verano vehicles built between April 2, 2012 and June 29, 2012. After further investigation the company issued a second recall covering 3,9000 Cruz, Sonic, Verano, and Camaro vehicles built between December 16, 2011 to February 1, 2012.

GM says it’s fully cooperating with the National Highway Traffic Safety Administration’s investigation. Once GM has identified what’s causing the problem, the company will determine if it needs to move forward with the recall.

More Articles About:

To contact the reporter on this story: staff.writers@wallstcheatsheet.com To contact the editor responsible for this story: editors@wallstcheatsheet.com

Yahoo Finance, Harvard Business Review, Market Watch, The Wall St. Journal, Financial Times, CNN Money, Fox Business