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GM Recalling Another 2.7 Million Vehicles In Five Separate Campaigns

The recalls keep rolling in from General Motors, evidently keen to avoid repeating the mistakes of the ignition-switch debacle and clean house. This time they're all coming at once, with five separate recalls announced together covering approximately 2.7 million vehicles. The largest of the five actions involves over 2.4 million units of the previous-generation Chevrolet Malibu and Malibu Maxx, Pontiac G6 and Saturn Aura in order to fix brake light wiring harness, which have been found to be susceptible to corrosion. The recall is separate from the 56k Aura sedans which GM recently recalled over faulty shift cables, not to mention the previous massive recall of 1.3 million vehicles – some of them the same models – but appears to have resulted from the National Highway Traffic Safety Administration investigation that started with the G6 almost a year ago. The second-largest campaign involves the 2014 Chevy Malibu, specifically those fitted with GM's 2.5-liter engine and stop/start system, approximately 140,000 examples of which has been found to have problematic brakes. The issue does not appear to be connected to the recall of 8k Malibu and Buick LaCrosse sedans (also involving brake woes) which we reported upon last week. Four crashes have been reported in such models, but GM admits it's not yet clear if the problem was a contributing factor in the accidents. A further 112k Corvette models from the 2005-2007 model years are being called in for problems with their low-beam headlamps resulting from a flexing relay control circuit wire that's not meant to bend. GM says it is "aware of several hundred complaints" about this issue, but notes that there have been no reports of related accidents. In addition, over 19k examples of Cadillac CTS from the 2013 and 2014 model years are being recalled over windshield wipers that might not work after a jump start. Finally, GM is also bringing in 477 examples of its 2014 Chevy Silverado, Tahoe and GMC Sierra (though not the Yukon) to fix a problem with a tie rod in its steering rack. As ever, all recall repairs will be performed free of charge, and GM is now estimating that recall-related actions this quarter will result in an estimated $200-million charge against its second-quarter earnings. Read the full announcement from GM below for further details.

GM won't pay owners of recalled cars for lost value

Kenneth Feinberg, the man in charge of the General Motors compensation fund dealing with the its widespread ignition switch woes, has issued an informal, two-letter response to the plaintiffs in more than 70 lawsuits seeking redress for lost resale value of their Cobalts: "No." The cases were recently combined into one, but Feinberg told The Detroit News that the fund will deal "only with death and physical injury claims," and that "perceived diminished value" will get no consideration.
ALG, the firm specializing in establishing residual values, determined that Cobalt owners had lost $300 compared to the segment competition and doesn't envision any long-term effects from the recall situation. Feinberg's statement comes in advance of public details on how the compensation fund will work and adheres to GM's long-held position on the matter. The company has already asked a judge to throw out such suits using the pre-bankruptcy defense, even as it stopped using that defense in cases of injury and death.
With plenty of potential gain from the GM suit, however, don't expect the plaintiffs to give up yet. When Toyota was sued for the same reason during the unintended acceleration debacle, it eventually settled the case for between $1 billion and $1.4 billion just to get it over with. Since the 85 law firms involved in the Toyota litigation took home more than $250 million of that total, we shouldn't expect the attorneys to give up on a GM payout, either.

GM executive chief EV engineer says reducing cost of plug-in vehicles is 'huge priority'

As we know, another major automaker investing heavily in electrified vehicles is General Motors, and it's doing things much differently than rivals BMW, Ford or Nissan. The Chevrolet Volt extended-range EV is a modest seller at its $35,000 sticker price but a huge hit with owners. The Chevy Spark BEV, still in limited availability, puts smiley faces on its owners and drivers. The just-introduced Cadillac ELR, a sharp-looking, fun-driving $76,000 luxocoupe take on the Volt's EREV mechanicals, has admittedly low sales expectations. With this interesting trio in showrooms and much more in the works, the third vehicle electrification leader I collared for an interview at Detroit's North American International Auto Show (see #1 and #2) was Pam Fletcher, GM's executive chief engineer, Electrified Vehicles. ABG: Why do your EREVs need four-cylinder power to extend their range when BMW's i3 makes do with an optional 650 cc two-banger? "We designed [the Volt and the ELR] to go anywhere, any time" - Pam Fletcher PF: I get that question all the time: why not something smaller? You don't really need that much. You use the electric to its ability, then you just need to limp. But we designed those cars to go anywhere, any time, and we don't want their performance to be compromised. If you're driving through the mountains, we don't want you to be crawling up grades, or to be limited on any terrain. So it's optimized to be able to travel literally the biggest grades and mountain roads around the globe at posted speeds. Because what if you can't? Another good reason: when the engine is on, you have to run it wide open throttle, max speed, most of the time. And while we can do a lot with acoustics, and the ELR has active noise cancelation, a small-displacement, low cylinder-count engine at high speed, high load all the time isn't something you want to live with. That's how we came up with the balance we did among the key factors of performance, NVH [noise, vibration and harshness] and range. ABG: Where you go from here? Is the range-extender engine due for an update? PF: We know and love the current Volt, and there is still a lot of acclaim about it, so we think it's a good recipe. But we are heavily in the midst of engineering the next-generation car, which I think everyone will love and be excited about.