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General Motors (GM) Recalls 64,000 Chevrolet Volt Hybrids - Analyst Blog

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General Motors Company GM is recalling 64,000 Chevrolet Volt hybrid electric cars, per media reports. The automaker is issuing the recall due to the problem of carbon monoxide creation when the vehicle is not shut down by the driver. The company plans to update the software to solve this issue.

General Motors will be recalling Chevrolet Volt cars of model years 2011 to 2013. The automaker has reportedly cited that if a driver forgets to shut down the vehicle before leaving it, it first operates on its high-voltage battery and when the battery is entirely exhausted, the gasoline engine starts operating. When the gas engine operates in a closed area, carbon monoxide is produced, which is harmful to humans.    

General Motors plans to update the software in such a way that it will put a limit to the time period for which the vehicle can be left idle. The modification of the software will be a unique one for the auto industry.

General Motors has also informed the U.S. National Highway Traffic Safety Administration about the recalls. Two injuries have been reported related to this issue.

In addition, General Motors said that it has halted the delivery of about 2,300 Chevrolet Trax and Buick Encore small crossovers of model year 2015 due to a pending safety recall. The automaker has detected that the vehicles have a problem of potential loss of electric power steering. Thus, General Motors intends to fix the problem before starting deliveries.

Lately, General Motors has been recalling vehicles in large numbers. The automaker announced 84 recalls covering more than 36 million vehicles in North America in 2014. Owing to the series of recalls made in the year ended Dec 31, 2014, the company had also recorded a $2.9 billion charge for recall-related repairs.

General Motors carries a Zacks Rank #2 (Buy).

Better-ranked auto stocks include Allison Transmission Holdings, Inc. ALSN, American Axle & Manufacturing Holdings Inc. AXL and Wabash National Corp. WNC. All these stocks sport a Zacks Rank #1 (Strong Buy).
 


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