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GM Recalls 218,000 Chevy Aveo Models Over Fire-Prone Lighting

The recall train keeps on rolling for General Motors. Hot on the heels of its recent 2.4 million-vehicle recall of various models, it's now calling in 218,000 Chevrolet Aveo units from the 2004-2008 model years because they could catch fire. The problem concerns the daytime running light module in the instrument panel. It could overheat, melt and cause a fire. According to GM spokesperson Alan Adler, "We are aware of some fires," and the company "is still investigating." Adler wouldn't comment about how many fires were reported or when the automaker was first aware of this issue because of the ongoing analysis. However, he said the issue has not caused any injuries or fatalities. GM also doesn't have a fix for the problem with the DRL module yet. The company says in its recall statement to the National Highway Traffic Safety Administration that the remedy "is still under development." Adler wasn't sure when it would be ready, but he said Aveo owners would receive notification in the mail "relatively soon." They will receive a second letter later to schedule the repair. In a separate letter about the Aveo's problem to NHTSA (viewable here as a PDF), GM said its Executive Field Action Decision Committee decided to conduct the recall on May 16. Scroll down for the recall report. RECALL Subject : Daytime Running Light Module Overheating Report Receipt Date: MAY 19, 2014 NHTSA Campaign Number: 14V261000 Component(s): Potential Number of Units Affected: 218,000 Manufacturer: General Motors LLC SUMMARY: General Motors is recalling certain model year 2004-2008 Chevrolet Aveo vehicles equipped with daytime running lights (DRL). In the affected vehicles, there may be heat generated within the DRL module located in the center console in the instrument panel, which could melt the DRL module. CONSEQUENCE: If the DRL module melts due to the heat generation, it could cause a vehicle fire. REMEDY: The remedy for this recall campaign is still under development. The manufacturer has not yet provided a notification schedule. Owners may contact General Motors customer service at 1-800-222-1020 (Chevrolet). General Motors recall number for this campaign is 14236. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.

GM profit dips on truck changeover, but beats estimates

DETROIT — General Motors on Thursday reported a higher-than-expected quarterly profit despite a drop in production of high-margin pickup trucks, as it gears up for new models that are expected to boost profits next year. Like rivals Ford and Fiat Chrysler Automobiles, GM is banking on highly-profitable Chevy Silverado and GMC Sierra pickup trucks to lift profits, as consumers shift away from traditional passenger cars in favor of these larger, more comfortable trucks, SUVs and crossovers. During the first quarter, the process of changing over to GM's new pickups resulted in a drop in production of 47,000 units. GM Chief Financial Officer Chuck Stevens said the production drop had resulted in a drop in pre-tax profit of up to $800 million. Earlier this year, GM said its 2018 profits would be flat compared with 2017, but expected its all-new pickup trucks would boost margins starting in 2019. On Thursday, GM reiterated its full-year 2018 forecast for adjusted earnings in a range from $6.30 to $6.60 per share. The automaker said capital expenditures were more than $500 million higher in the quarter because of investments its new pickup trucks and a family of low-cost vehicles under development with Chinese partner SAIC Motor Corp. On Wednesday, rival Ford said it would stop investing in most traditional passenger sedans in North America. CFO Stevens told reporters on Thursday that GM has "already indicated that we will make significantly lower investments on a go-forward basis" in sedans. 2019 GMC Sierra View 21 Photos GM benefited from a lower effective tax rate in the quarter, but adjusted pre-tax margin fell to 7.2 percent from 9.5 percent a year earlier. Stevens said the company's profit margin should hit 10 percent or higher in the second quarter and for the full year. GM said material costs were $700 million higher in the first quarter, and it expects those costs to continue rising. The automaker said it would counter those increases with cost cutting measures. "It is a more difficult environment than it was three or four months ago," Stevens said when asked about rising commodity prices from potential steel and aluminum tariffs announced by the Trump administration. "But we are confident we can continue to offset that." The company reported quarterly net income of $1.05 billion or $1.43 per share, a drop of nearly 60 percent from $2.61 billion or $1.75 per share a year earlier. Analysts had on average expected earnings per share of $1.24.

GM: Without LG Chem, we couldn't build Bolt EV [UPDATE]

It's absolutely no surprise that General Motors has a thing for LG Corp. The Detroit automaker and the Korean parts supplier have been working in public on electric vehicles ever since it was announced that LG Chem would supply the battery cells for the Chevy Volt in 2009. LG Chem was even named GM's 2010 Supplier of the Year. But, yesterday, the connection between the two companies was strengthened with the announcement that LG Electronics would be supplying a number of components for the upcoming Chevy Bolt electric vehicle. The Bolt is expected to be able to go about 200 miles and will carry a price tag of about $30,000 (after incentives) when it arrives in 2017 or so. LG's new components can be found almost everywhere in the Bolt. They include the battery pack and the battery heater, a new motor, the power inverter module, the electric climate control system compressor, the on-board charger, high-power distribution module, the accessory power module, and power line communication module. Oh, and then there are LG Electronics' advanced display technologies like the new instrument cluster and a new infotainment cluster. LG Electronics also supplies parts for the 4G LTE OnStar system, just like it does in other new Chevys. If that all sounds like a lot of components to you, you're right. Mark Reuss, GM executive vice president of global product development, purchasing and supply chain, said that without the expanded relationship with LG, GM would not be able to bring the Bolt to market (insert old ironic quote link here). "I think GM was lacking that [electrification knowledge] in a very complete way for many years, I'll just be frank about that," Reuss said. "I also think that on an electrified basis, this requires a long-term commitment and trust that sometimes is violated on a more short-term, regular, traditional basis. I think we have found something completely different with LG and I think that has become a widely talked about and duplicated want from our purchasing and corporate standpoint with our supply base." The "this" that Reuss is talking about here is the OEM-supplier relationship, something has evolved with the LG-GM situation. Previously, the automaker-supplier relationship used to be more like a dictator telling underlings what he needed, Reuss said, and that was a bad idea. "Today's competitive landscape requires a different approach, especially in electrified vehicles," he said.