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GM recalls nearly 1 million vehicles for airbag defect

WASHINGTON — General Motors said on Friday it will recall nearly 1 million sport utility vehicles in the United States because the driver's airbag inflator may explode during deployment. The recall covers 994,763 Buick Enclave, Chevrolet Traverse, and GMC Acadia vehicles from the 2014 through 2017 model years with modules produced by ARC Automotive Inc. Dealers will replace the driver's airbag module. The National Highway Traffic Safety Administration said a driver in Michigan of a 2017 Chevrolet Traverse was in a crash in which the front-driver airbag inflator ruptured during deployment causing facial injuries. An April 25 inspection confirmed that the front driver airbag inflator ruptured in the vehicle. The National Highway Traffic Safety Administration (NHTSA) demanded the recall of 67 million air bag inflators because it believes there is a safety defect, but auto supplier ARC Automotive Inc rejected the U.S. regulator's request, documents released on Friday show. The auto safety agency said the inflators pose an unreasonable risk of death or injury. Even as ruptures mount, "ARC has not made a defect determination that would require a recall of this population," NHTSA said in its demand letter to the Tennessee-based company. "Air bag inflators that project metal fragments into vehicle occupants, rather than properly inflating the attached air bag, create an unreasonable risk of death and injury." GM said it was still investigating the issue with the assistance of a third-party engineering firm. "GM is taking this expanded field action out of an abundance of caution and with the safety of our customers as our highest priority," the Detroit automaker said. GM said it was aware of two prior ruptures of ARC-manufactured airbag inflators in 2015 Chevrolet Traverse vehicles, and GM conducted two earlier small recalls of about 3,000 ARC inflators. All three rupture events in Chevrolet Traverse vehicles involved the same inflator variant. ARC noted in a letter made public Friday that no root cause for those ruptures has been identified by ARC or GM. ARC said it was assessing the scope of GMÂ’s recall.  Government/Legal Recalls Buick Chevrolet GMC Safety Crossover SUV

GM and Ford quarterly sales continue to slump in China

BEIJING — General Motors and Ford announced their quarterly sales in China fell, albeit at a slower pace sequentially, as the U.S. automakers were hit by a slowing economy amid the Sino-U.S. trade war. GM's vehicle sales in China for the quarter ended June 30 dropped 12.2%, while Ford's sales slumped by 21.7%. While GM also suffered from heightened competition in its key mid-priced SUV segment, Ford was hurt by the limited new models for customers to choose from. For the first quarter of this year, Ford's sales in China tumbled 35.8 percent while GM's skid 17.5 percent. Still, the numbers from GM, the second biggest international automaker in China by sales, and Ford portend more uncertainty for the industry which is trying to rebound from a downward spiral that led to its first annual sales decline last year in more than two decades. GM delivered 1.57 million vehicles in China in the January-June period this year, while Ford delivered 290,321 vehicles. China's factory activity shrank more than expected in June, highlighting the need for more economic stimulus amid higher U.S. tariffs and weaker domestic demand. Annual car sales in China fell last year for the first time since the 1990s, and they are expected to fall this year too. Sales tumbled 16.4% in May from the same month a year prior, the China Association of Automobile Manufacturers (CAAM) said. That marked the 11th consecutive month of decline and followed falls of 14.6% in April and 5.2% in March. U.S. car companies' share of total China passenger vehicles sales fell to 9.6% in the first five months of this year from 10.9% in the year-ago period, according to CAAM. Over the same period, German car makers' share has risen to 23.3% from 20.9% and Japanese auto makers' to 21.3% from 17.3%. CAAM is set to announce June sales next week, which industry analysts forecast will be negative.   New models In China, GM has a joint venture with SAIC Motor Corp, in which the Buick, Chevrolet and Cadillac are made. It also has another venture, with SAIC and GuangxiAutomobile Group, in which they make no-frills minivans and have started to make higher-end cars. Sales of GM's affordable brand Baojun dropped 31.8% for the latest quarter. But luxury brand Cadillac's sales jumped 36.6%. GM sold 3.64 million units in China last year, down from 4.04 units in 2017. Ford makes cars in China through its joint venture with Chongqing Changan Automobile Co and Jiangling Motors Corp (JMC).

GM to add 1,200 workers at 2 Michigan factories

DETROIT — General Motors is adding 1,200 jobs at two Michigan factories to build midsize SUVs and two new luxury sedans. GM said Friday that its Lansing Delta Township plant will get a third shift and 800 more workers to build the Chevrolet Traverse and Buick Enclave SUVs, which have three rows of seats. The Lansing Grand River plant will get a second shift and 400 more workers to build two new Cadillac sedans, the CT4 and CT5. Employees laid off at other GM factories will fill the new jobs first, then workers will be added, GM spokesman Dan Flores said. The company has not determined yet how many new people will be needed, he said. Both additional shifts will start working sometime between April and June, the company said. Lansing Delta Township now employs about 2,500 salaried and blue-collar workers, while the Grand River plant has 1,400. GM sold more than 147,000 Traverse SUVs in the U.S. last year, a 0.4% increase from 2018. Enclave sales were up 3% to just over 51,000, according to Autodata Corp. Related Video: