General Motors GM recently announced its decision to recall more than 484,000 large SUVs in the United States to repair malfunctioning seat belts. The issue relates to the third row seat belts which may not protect the occupants in an accident.
In a report, the automaker said the rivets that hold the buckle to the mounting bracket on the left and right third row seats may have been improperly fastened at the factory, and chances are parts of the assembly of buckle come off. For this reason, the seat belts may not protect third row occupants and increase the risk of injury in the event of a collision. The recall affects both the left and right side seat belts.
The company is aware of eight instances where the seat belt buckles have separated, but no injuries have been reported.
After the issue was reported, the seat belt supplier changed its manufacturing processes and introduced an additional inspection step to ensure that the new parts were free of the issue.
As part of mitigation efforts, dealers will examine the recalled vehicles’ seat belt buckle assemblies and replace them with new parts, free of charge, if necessary.
Drivers whose vehicles are involved in the recall may be eligible for a rental car or courtesy transportation until the repair is completed.
On the one hand, automakers are looking for technological advancements in their products, but on the other hand, recalls have also increased significantly.
In April, GM announced that it had recalled nearly 682,000 compact SUVs due to faulty windshield wipers. In March, the company decided to recall 740,000 SUVs in the United States to address headlight glare issues. Last year, General Motors recalled its affordable electric vehicle, the Chevrolet Bolt, and its crossover counterpart, the Bolt EUV, after reports of battery fires. A decision to halt production was made in November 2021 and a stop-sale order was issued as GM and battery supplier LG Energy Solution worked on a solution. However, this year production restarted at the Lake Orion Assembly plant in Michigan.
Another automotive giant, Ford engine F recently issued the first recall of its Ford F-150 Lightning electric pickup trucks. The recall is due to a safety issue with the tire pressure monitoring system. It covers trucks equipped with 20-inch or 22-inch all-season tires. Ford has also issued a number of recalls lately. Some time ago, F recalled more than 2.9 million vehicles that may not shift into the correct gear due to a damaged or missing shift cable. This could cause the vehicles to lose balance and deviate, even after selecting the “Park” position.
GM shares have lost 23.3% in the past year against an 11.6% rise in its industry.
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Zacks ranking and key picks
GM carries a Zacks Rank #3 (Hold), currently.
Top-ranked players in the automotive space include Harley-Davidson PIG and Genuine Parts Company GPC, each carrying a Zacks Rank #2 (Buy), currently. You can see the full list of today’s Zacks #1 (Strong Buy) ranking stocks here.
Harley-Davidson has an expected profit growth rate of 6.9% for the current year. The Zacks consensus estimate for current-year earnings has been revised up 8.5% in the past 30 days.
Harley-Davidson’s earnings have exceeded the Zacks consensus estimate in three of the past four quarters and missed one. HOG has realized a surprise on earnings for the last four quarters of 49.52% on average. The stock is up 3.2% over the past year.
Genuine Parts has an expected profit growth rate of 15.3% for the current year. The Zacks consensus estimate for current-year earnings has been revised up 1.5% in the past 30 days.
Genuine Parts’ earnings have exceeded Zacks’ consensus estimate for the past four quarters. GPC has realized a surprise on earnings for the last four quarters of 11.03% on average. The stock is up 28.3% over the past year.
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Ford Motor Company (F): Free Inventory Analysis Report
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