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GM recalls 3,300 pickups and SUVs for new ignition-switch issue [UPDATE]

UPDATE: A statement from GM about the recall has been added below. The exact total of vehicles affected is 3,296, including 3,073 of them in the US. General Motors isn't letting an ignition-switch problem grow into a massive scandal again. The automaker is recalling about 3,300 North American trucks and SUVs. They are: the 2014 Chevrolet Silverado and GMC Sierra and the 2015 Chevy Suburban and Chevy Tahoe, as well as 2015 model heavy-duty pickups, the Detroit News reports, citing an Associated Press story. The issue appears to have been caught fairly quickly. In this case, the keys can get stuck in the "start" position and then slip to "accessory" if bumped. This is because the ignition lock gears have an outer diameter that's larger than the specifications allow. When that happens the engine shuts off, and the driver loses assistance to the steering and brakes. The airbags might also be affected. The vehicles get a new ignition-lock housing to fix the problem. According to the Detroit News, an employee who experienced the problem with the switch discovered the issue, and this person then let officials at the automaker know as part of the Speak Up for Safety program. A total of five reports of the fault were discovered. However, there are no cases of injuries or crashes. The claims to the automaker's resolution program eventually tallied that GM's previous ignition switch problem included 124 deaths and 275 injuries. The company also had to recall millions of vehicles and pay significant fines to the US government. GM Statement General Motors is recalling 3,073 full-size trucks from the 2014 and 2015 model years in the U.S. Some of these vehicles may have an ignition lock actuator gear with an outer diameter that exceeds specifications, which may make turning the ignition key difficult. The ignition key could get stuck in the "start" position. This may be more likely at higher interior ambient temperatures. If the vehicle is driven with the key stuck in the "start" position, and the vehicle experiences a significant jarring event or the vehicle's interior temperature cools, the ignition lock cylinder could move out of the "start" position, rotate past the "run" position, and move into the "accessory" position, leading to loss of power steering assist, power brakes and potentially air bag deployment in certain crashes. Dealers will replace the ignition lock housing.

GM threatens predatory dealers with order cancellations, non-transferrable warranties

General Motors will launch a second salvo against misbehaving dealerships next week with a new set of policies aimed at curbing predatory markup strategies. With the new Chevrolet Corvette Z06, GMC Hummer EV SUV and Cadillac Escalade-V about to head into production, GM is putting its foot down yet again. Dealers that attempt to circumvent GM's markup restrictions by dealing directly with brokers or other resellers could find themselves in a particularly nasty spot, as the company is threatening to withhold future allocations and end the transferability of warranties when dealers facilitate the reselling of vehicles within 12 months.  While this may help curb some dealership chicanery, it's possible the real loser in such a deal could end up being the customer who unwittingly ends up with an un-warrantied vehicle. We suspect GM has accounted for that, but we'll have to wait until next week to find out exactly how these new policies will be enforced.

The USPS needs 180,000 new delivery vehicles, automakers gearing up to bid

Winning the New York City Taxi of Tomorrow tender was a huge prize for Nissan, even though the company is still working through the process of claiming its prize. The United States Postal Service has begun the process to take bids for a new delivery vehicle to replace the all-too-familiar Grumman Long Life Vehicle, and that will be a much larger plum for the automaker who wins it, perhaps worth more than six billion dollars. The Grumman LLV is an aluminum body covering a Chevrolet S-10 pickup chassis and General Motors' Iron Duke four-cylinder engine. The USPS bought them from 1987 to 1994, and the 163,000 of them still in service are a monumental drain on postal resources: they get roughly ten miles to the gallon instead of the quoted 16 mpg, drink up more than $530 million in fuel each year, and their constant repair needs like the balky sliding door and leaky windshields have led the service to increase the annual maintenance budget from $100 million to $500 million. A seat belt is about as modern as it gets for safety technology, and the USPS says that assuming things stay the same, it can't afford to run them beyond 2017. Last year it put out two triage requests for proposals seeking 10,000 new chassis and drivetrains for the Grumman and 10,000 new vehicles. The LLV is also too small for the modern mail system in which package delivery is growing and letter delivery is declining. The service says it doesn't have a fixed idea of the ideal "next-generation delivery vehicles," but it listed a number of requirements in its initial request and is open to any proposal. Carriers have some suggestions, though, saying they want better cupholders, sun visors that they can stuff letters behind, a driver's compartment free of slits that can swallow mail, and a backup camera. The request for information sent to automakers pegs the tender at 180,000 vehicles that would cost between $25,000 and $35,000 apiece, and it will hold a conference on February 18 to answer questions about the contract. GM is the only domestic maker to avow an interest, while Ford and Fiat-Chrysler have remained cagey. Yet with a possible $6.3 billion up for grabs and some new vans for sale that would be advertised on every block in the country, we have a feeling everyone will be listening closely come February 18. We also have a feeling the LeMons series is going to be flooded with Grummans come 2017. News Source: Wall Street Journal, Automotive News - sub.