GM Recalls 4 Million Pickups
DETROIT (Reuters)
- General Motors Corp. (NYSE:GM - News) on Thursday said it will
recall more than 4 million full-size pickup trucks to replace tailgate
support cables that may corrode and fracture.
The massive
recall, one of the largest in eight years, counters recent claims
of improved quality at the world's largest automaker.
About 3.7 million
of the recalled vehicles are in the United States, 325,000 are in
Canada, and 93,000 are in Mexico. The recall includes certain 2000-2004
Chevrolet Silverados and GMC Sierras as well as some 2002-2004 Chevrolet
Avalanche and Cadillac Escalade EXT trucks.
GM has reported
430 complaints of one or both of the tailgate support cables breaking
on the trucks, which became the target of an upgraded investigation
by the National Highway Traffic Safety Administration late last
month.
In a statement
on Thursday, GM also reported 134 "minor injuries" linked
to the tailgate problem, which it earlier identified as the source
of more than 61,000 warranty claims.
No crashes or
fatalities have been reported due to the faulty tailgates, GM said.
GM has recalled
roughly 7 million vehicles due to potential safety problems since
the start of February, including the full-size pickups which account
for a huge chunk of its automotive profits.
The recalls,
while not uncommon for a mass market automaker, run counter to recent
assertions that GM's quality has improved dramatically.
Consumer Reports
magazine, citing responses from 675,000 of its readers, said earlier
this month that U.S. automakers have edged ahead of their European
competitors in new vehicle quality. However, the magazine, which
is consulted by an estimated 30 percent to 40 percent of U.S. car
buyers, said that the average new Big Three model still has 50 percent
more serious problems than Asian cars and trucks.
GM shares were
down 44 cents at $46.05 in early trade on the New York Stock Exchange
(News - Websites) .
GM said it will
replace the steel support cables with stainless steel cables at
no cost to customers. However, due to the large number of vehicles
involved in the recall, replacement cables will not be available
immediately. GM said it won't notify consumers of the recall until
sometime beginning in the third quarter of this year.
###
Back
to News
|