General Motors (GM) has announced a global recall of about 721,000 SUVs and trucks due to potential engine defects that could lead to a loss of power and increase the risk of accidents. This recall, announced by the National Highway Traffic Safety Administration (NHTSA), impacts Cadillac, Chevrolet, and GMC models, spanning the 2021 through 2024 model years.
It must be noted that the recall follows over 28,000 complaints related to engine failures, including 12 reported crashes, 12 injuries, and 42 fires potentially linked to this issue.
According to the NHTSA notice, the affected vehicles are equipped with 6.2L V8 gas engines, which may have manufacturing defects in the connecting rod or crankshaft. These defects could lead to engine damage or complete failure.
GM Offers Free Engine Fixes
Importantly, GM has asked dealers to inspect affected vehicles and, if needed, repair or replace the engine free of charge. The company estimates that only about 3% of the recalled vehicles have the defect, but it is taking proactive steps to ensure customer safety.
Also, for vehicles that pass the initial check, GM will take steps to prevent future issues. This includes using thicker engine oil, installing a new oil cap, changing the oil filter, and updating the owner’s manual.
GM’s History of Recalls
This recall follows an investigation initiated by the NHTSA in January, which covered 877,710 GM trucks and SUVs. GM recalled these vehicles due to defective 6.2L V8 engines, which could suffer from crankshaft and connecting rod failures, leading to engine damage or total failure.
Further, in 2022, GM issued a recall for Chevrolet Silverado and GMC Sierra trucks due to brake fluid leaks, which could reduce braking performance and raise crash risks. Also, in 2021, GM recalled Chevrolet Bolt EVs over battery fire risks, affecting thousands of vehicles globally.
GM has been working to address safety concerns, but recurring engine and mechanical failures reflect ongoing challenges in the company’s quality control and manufacturing processes.
Is GM a Good Stock to Buy Now?
On TipRanks, GM stock has a Moderate Buy consensus rating based on eight Buys, seven Holds, and two Sells assigned in the last three months. The average General Motors stock price target of $54.38 suggests an upside potential of 15.85% from its current price. Year-to-date, shares of the company have declined by over 11%.
