Dallas, Texas 05/09/2014 (FINANCIALSTRENDS) – General Motors Company (NYSE:GM) continues its series of 2014 recalls started in February, spanning several brands. Yesterday the company announced recall of 8,590 Chevrolet and Buick sedans in North America to address a possible braking problem. The company detailed that it recalled specific 2014 model year Chevy Malibu and Buick LaCrosse sedans for potential reduced braking performance. The company believed that rear brake rotors may have been fitted in the front brake assembly which could increase the risk of a crash while shortening the span of the front brake pad.
Mis-build in Front Brake Assembly:
General Motors Company (NYSE:GM) noted that very small proportion of the recalled vehicles will contain such mis-build in the front brake assemble and that the company is unaware of any accidents because of such mis-build. While explaining the technical details, the company noted that a rear brake rotor is 7 mm thinner than a front rotor and over time higher heat generated by thin rotors can shorten brake pad life.
While detailing out the numbers of affected vehicles, General Motors Company stated that they have recalled 8,208 cars sold in the U.S., 209 cars sold in Canada and 173 cars sold in Mexico. Moreover, of the 8,208 cars sold in the U.S., most of the cars are still with dealers and only 1,694 cars have been sold out to consumers.
Consumers who have taken delivery of a vehicle will be notified by letter and until dealers inspect, they could request a courtesy vehicle. If the vehicle will be found affected then the front brake rotors will be replaced.
Stock Update:
General Motors Company (NYSE:GM)’s stock yesterday closed at $34.85, losing 0.63% from its previous close. The stock traded with almost half the volume of 10.25 million shares against its 30 day average volume of 21 million shares. Its 52 week range is between $30.86 and $41.85.
