GM recall expands again (again)

posted at 10:01 am on March 31, 2014 by Gabriel Malor

Friday morning, Ed covered the expanding GM recall related to faulty ignition switches. That recall now reaches 2.6 million GM vehicles from model years 2003-2011.  By the end of the day Friday, two more recalls raised that number to almost 5 million. The first new recall applies to the transmissions of 2014 Chevrolet Silverado and GMC Sierra 1500 pickup trucks, and 2015 Chevrolet Suburban and Tahoe SUVs and GMC Yukon and Yukon XL SUVs.

The second new recall applies to Chevrolet Cruze compact cars, which apparently have a bad right front axle shaft. Get this, some of the bad shafts were installed during a previous recall for the Cruze.

Watch:

GM CEO Mary Barra will testify on Tuesday and Wednesday to House and Senate committees looking into the recalls. Of particular interest will be determining whether GM was aware of the problems before gaining immunity from liability as it came out of bankruptcy in 2009. Were courts to find that the company had engaged in bankruptcy fraud, “new GM” would be on the hook for “old GM’s” liabilities. I would also expect the SEC to get involved at some point, since new GM has been trading shares (including a $10 billion loss to taxpayers) on the theory that it was protected from old GM’s debts, something that may unravel if courts find it engaged in fraud.


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something that may unravel if courts find it engaged in fraud.

Not gonna’ happen while 0bama is in office.

cozmo on March 31, 2014 at 10:06 AM

Ah, the beat goes on. If this keeps up, GM will have to seek taxpayer assistance. Oh, wait…

vnvet on March 31, 2014 at 10:08 AM

Great to have Gabe posting over here.

aquaviva on March 31, 2014 at 10:09 AM

I only hope our CEO in chief is ready to step in and save the day again as GM falters. Think of the unions, people!

tdarrington on March 31, 2014 at 10:14 AM

You know GM was trying hard to bury this via the bankruptcy. Their engineers knew and my guess is management refused to fix the problem.

Mini-14 on March 31, 2014 at 10:16 AM

…Government Motors…giving cars away again on leases and rebates for retails, to make up for all of the problems they are having now…so they can go into the residual red a few years from now…and get bailed out again.

KOOLAID2 on March 31, 2014 at 10:17 AM

GM is alive…and Bin Laden is dead….”

or something

ted c on March 31, 2014 at 10:19 AM

This is probably done on purpose to rid America of the evil automobile.

Flange on March 31, 2014 at 10:19 AM

Obama will use his pen to transfer liability to the GM bond holders, absolving all past and present executives of guilt….once the campaign contribution checks clear.

tdarrington on March 31, 2014 at 10:19 AM

Chevrolet Cruze compact cars, which apparently have a bad right front axle shaft. Get this, some of the bad shafts were installed during a previous recall for the Cruze.

right...baaaad…

left…goood…

Hmmm?

ted c on March 31, 2014 at 10:21 AM

I own my first Chevrolet and I have to admit that I am not filled with confidence.

Cindy Munford on March 31, 2014 at 10:23 AM

tdarrington on March 31, 2014 at 10:19 AM

I don’t know, didn’t he transfer a lot of GM ownership to the unions? Isn’t there someway he can make the taxpayer responsible?

Cindy Munford on March 31, 2014 at 10:24 AM

I once owned a ’71 Vega, no more GM’s for me.

Mini-14 on March 31, 2014 at 10:25 AM

The halfshaft issue on the Cruze is for the ones with the 1.4l turbo four. Sounds like they have a metallurgy or tempering issue with the shafts. I wonder who supplied them? GKN? Dana-Spicer?

Ward Cleaver on March 31, 2014 at 10:27 AM

After the bailout I said I would never ever ever ever … ever buy a GM product again. I think I made a good call.

tdarrington on March 31, 2014 at 10:30 AM

Taking the 5th??

right2bright on March 31, 2014 at 10:31 AM

I will never ever own a gm car for as long as I live.

jhffmn on March 31, 2014 at 10:31 AM

How about another bailout?

Philly on March 31, 2014 at 10:34 AM

Well DUH!

What do you expect from a bankrupt company run by the government and union goons.

Last GM car I bought was 1981!

txdoc on March 31, 2014 at 10:34 AM

The second new recall applies to Chevrolet Cruze compact cars, which apparently have a bad right front axle shaft. Get this, some of the bad shafts were installed during a previous recall for the Cruze.

Clearly GM compromised on the engineering so that they could focus on all the fine design detail of the Chevy Cruz. /

Seriously, how in the hell do you mess up what is essentially a souped up golf cart?

Happy Nomad on March 31, 2014 at 10:37 AM

I own Fords. Only Chevy I ever had was a total POS. I will never buy GM or Chrysler again. Current car is a 2011 Focus, next one will be a F-150.

ConstantineXI on March 31, 2014 at 10:39 AM

Oh yeah!? I proudly own a Chevy, so there!

And another vehicle with a Chevy 350. So there! again.

cozmo on March 31, 2014 at 10:42 AM

Clearly GM compromised on the engineering so that they could focus on all the fine design detail of the Chevy Cruz. /

Seriously, how in the hell do you mess up what is essentially a souped up golf cart?

Happy Nomad on March 31, 2014 at 10:37 AM

The Cruze is also the same car as the “Dolt”, but without the electric motor. Don’t forget, this was the car that was first recalled because the steering wheels were coming off!

Look for the union label….

ConstantineXI on March 31, 2014 at 10:42 AM

I can understand buying american trucks (though I would go for a tacoma myself), but an american car?

Germans and Japanese do them so much better across all price points.

uatu1878 on March 31, 2014 at 10:48 AM

the bad ones installed during a recall, the ignition switches not having good ones installed when delphis parts were found bad.
really sounds like bad parts are being put back into the supply chain.

dmacleo on March 31, 2014 at 10:48 AM

I will never ever own a gm car for as long as I live.

jhffmn on March 31, 2014 at 10:31 AM

I will never own anything built by the greedy UAW again. The greedy UAW is the root of the problem, not management at GM, Ford, or Chrysler.

slickwillie2001 on March 31, 2014 at 11:01 AM

Germans and Japanese do them so much better across all price points.

uatu1878 on March 31, 2014 at 10:48 AM

We need to redefine what we mean by American car. My Toyota was built in the South. Ford products could just as well be from Canada or Mexico. There is so much more to the American auto industry than the upper midwest.

Happy Nomad on March 31, 2014 at 11:02 AM

The Cruze is also the same car as the “Dolt”, but without the electric motor. Don’t forget, this was the car that was first recalled because the steering wheels were coming off!

Look for the union label….

ConstantineXI on March 31, 2014 at 10:42 AM

It was also the line that was going to push GM back into profitability without costing the American taxpayer a dime for investing in the UAW pension fund by bailing out GM

Happy Nomad on March 31, 2014 at 11:04 AM

There is so much more to the American auto industry than the upper midwest.

Happy Nomad on March 31, 2014 at 11:02 AM

Unions come to mind.

Wade on March 31, 2014 at 12:04 PM

I guess these guys must have left Chrysler.

Hill60 on March 31, 2014 at 12:24 PM

I have an 01 Buick that was given to me for free. Otherrwise I wouldn’t actively buy a GM vehicle.

Looks like GM may need another bailout to save teh unionz again.

Mark Boabaca on March 31, 2014 at 1:30 PM

Unions come to mind.

Wade on March 31, 2014 at 12:04 PM

Eh, its more than that. German unions and JAW (Japanese unions) are quite powerful and it doesn’t stop those countries from making high quality vehicles.

I know German cars are a bit less reliable but technically excellent.

There’s more to it than UAW incompetence.

uatu1878 on March 31, 2014 at 2:12 PM

We need to redefine what we mean by American car. My Toyota was built in the South. Ford products could just as well be from Canada or Mexico. There is so much more to the American auto industry than the upper midwest.

Happy Nomad on March 31, 2014 at 11:02 AM

Yes agreed. Honda’s in Ohio, Subaru is in Indiana, etc. – However these cars’ design teams are a lot of times not in the US.

I consider an american car one that is designed and manufactured in the US with the profits staying primarily in the US.

uatu1878 on March 31, 2014 at 2:15 PM

We need to redefine what we mean by American car. My Toyota was built in the South. Ford products could just as well be from Canada or Mexico. There is so much more to the American auto industry than the upper midwest.

Happy Nomad on March 31, 2014 at 11:02 AM

Yes agreed. Honda’s in Ohio, Subaru is in Indiana, etc. – However these cars’ design teams are a lot of times not in the US.

I consider an american car one that is designed and manufactured in the US with the profits staying primarily in the US.

uatu1878 on March 31, 2014 at 2:15 PM

Let me know if you can come up with an honest tally of where profits from the principal manufacturers end up.

The way it looks to me at present, the ‘foreign’ manufacturers are investing more in the USA than the ‘domestic’ manufacturers. The domestics are investing in places like Red China.

Profits also go to shareholders, and with companies publicly traded and a moving target, those shareholders can be anywhere in the world.

slickwillie2001 on March 31, 2014 at 5:07 PM

Obama gets payola from the UAW whom he gave GMC to!

Obama has the DOJ which is involved heavily in selective prosecution and enforcement!

the UAW is one of the Selective Many that get favors Chicago Style.

so GM is innocent!

Obamatrix on March 31, 2014 at 10:36 PM