General Motors Company (GM)’s 2nd Recall in China

General Motors Company (GM)’s 2nd Recall in China

General Motors Company (GM) announced its second recall in China this year. The recall covers almost 1.5 million cars produced in China by the Shanghai General Motors, General Motors’ Chinese joint venture with SAIC Motor.

The recall includes 1.2 million Buick Excelles produced from 2006 to 2012, 250,000 Chevrolet Sails manufactured from Apr 2009 to Oct 2011 and some vehicles produced in 2012. These are the most popular models of General Motors in China.

Jim Chanos Unveils Lastest Short As Fund Manager Bets On Further Market Declines

Data 1639507577Jim Chanos has a new short target in his sights. Earlier this week, the hedge fund manager disclosed that he is betting against "legacy" data centers that face growing competition from the trio of technology giants, which have previously been their biggest customers. The fund manager, who is best known for his winning bet against Read More

General Motors had to recall the vehicles to replace a faulty fuel-pump bracket. The Administration for Quality Supervision, Inspection and Quarantine believes that the bracket might break after extensive use and in worst cases may even lead to leakage of fuel.

However, this is not the first time that General Motors is recalling vehicles from China this year. In May 2013, the automaker recalled 2,653 imported Cadillac SRX sport utility vehicles to fix nuts on wheels. It was feared that the nuts might loosen due to torque.

International automakers are focusing on China owing to rising demand in the Chinese market. Apart from SAIC Motor, General Motors also operates in the nation with its partner FAW Group. On the other hand, Ford Motor Co. (F) has joint ventures with Changan Automobile and Jiangling Motors in China.

However, not only General Motors, other automakers too are recalling vehicles in China for several reasons. It has been reported that, Ford’s joint venture with Chongqing Changan Automobile will be recalling around 81,000 cars from China. The recall is being made due to problems in a steering part.

Furthermore, Volkswagen AG (VLKAY) issued two recalls in China in Nov 2013. One of these was a recall of 640,309 cars and minivans to replace the synthetic oil in their transmissions with mineral oil. The company believes that the use of synthetic oil might lead to electrical problems. In Oct 2012, Toyota Motor Corp. (TM) recalled 1.4 million vehicles in China as part of its massive global recall of 7.4 million.

Leading automaker General Motors currently carries a Zacks Rank #3 (Hold).

FORD MOTOR CO (F): Free Stock Analysis Report

GENERAL MOTORS (GM): Free Stock Analysis Report


To read this article on click here.

Zacks Investment Research

Updated on

At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1986 it has nearly tripled the S&P 500 with an average gain of +26% per year. These returns cover a period from 1986-2011 and were audited and attested by Baker Tilly, an independent accounting firm.
Previous article BP plc (BP) Contracts Woodside for N Sea Biz
Next article Google Inc (GOOG): Solid Q4 Likely – YouTube, Android Driving Revenue Growth

No posts to display