Shares in automobile manufacturer General Motors (GM) were lower today after it was forced into another major vehicle recall.
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Fire Hazard
According to the National Highway Traffic Safety Administration, General Motors is recalling more than 23,500 Chevrolet Corvette vehicles in the U.S. over a fuel leak issue.
The NHTSA said that there was a danger that fuel could spill into the pocket around the gas cap while drivers are refueling these vehicles. That could then leak onto an ignition source, such as hot engine or exhaust components, and cause a fire.
Indeed, an investigation has already identified four alleged fires potentially related to the defect. Malfunctioning gas station pumps were contributing factors in at least two of these incidents. As a result, the NHTSA said that, as a remedy, dealers will install a shield to divert spilled fuel.
The recall affects Corvette models from 2023 to 2025, as well as its Convertible and Coupe variations from 2026, according to the report. NHTSA estimates that about 0.1% of the recalled cars have the defect.
Long Line of Recalls
This is the latest recall to hit General Motors this year.
In June, GM said it was recalling 62,468 vehicles over the risk that a fault in the brake pressure sensor assembly may allow fluid to leak, increasing chances of an electrical short and a fire.
In April, GM 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 impacted Cadillac, Chevrolet, and GMC models, spanning the 2021 through 2024 model years.
In January, General Motors recalled roughly 2,890 2025 Chevrolet Equinox EV models due to problems with their adaptive cruise control and braking.
At a difficult time for the auto industry given tariff uncertainty and faltering consumer confidence, this spate of recalls is an unwelcome hit to brand reputation.
It is why safety is such a key risk for auto companies and their investors – see below.
It appears that the NHTSA is ramping up its efforts to improve safety and transparency in the auto sector. It is also keen to respond faster to customer complaints.
Other manufacturers to be hit with recalls this year include Honda (HMC) and Stellantis (STLA).
Is GM a Good Stock to Buy Now?
On TipRanks, GM has a Moderate Buy consensus based on 12 Buy, 4 Hold and 2 Sell ratings. Its highest price target is $80. GM stock’s consensus price target is $59, implying a 1.24% upside.
