Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

GM will recall 5.9 million vehicles for air bag issue: safety agency

Published 11/23/2020, 09:40 AM
Updated 11/23/2020, 10:10 AM
© Reuters. FILE PHOTO: Eight versions of General Motors CO’s new generation Chevrolet Silverado pickups are pictured lined up at an event near Alpine

By David Shepardson

WASHINGTON (Reuters) - General Motors Co (NYSE:GM) will recall 5.9 million vehicles with potentially dangerous Takata air bag inflators after a U.S. safety agency said Monday it had rejected the Detroit automaker's petition to avoid the callback.

The National Highway Traffic Safety Administration said GM must recall the 2007-2014 model year trucks and SUVs because the inflators "are at risk of the same type of explosion after long-term exposure to high heat and humidity as other recalled Takata inflators."

GM has estimated in securities filings it would cost $1.2 billion if it were required to replace air bag inflators it had sought to avoid fixing.

The company had argued the recalls were unnecessary because they did not pose a safety risk.

GM said on Monday it still believed "a recall of these vehicles is not warranted based on the factual and scientific record." The company said it "will abide by NHTSA’s decision and begin taking the necessary steps."

The defect, which leads in rare instances to air bag inflators rupturing and sending potentially deadly metal fragments flying, prompted the largest automotive recall in U.S. history of about 63 million inflators. Worldwide, about 100 million inflators by 19 major automakers were recalled.

The recall includes some Cadillac Escalade, Chevrolet Silverado, Chevrolet Suburban, Chevrolet Tahoe, GMC Sierra and GMC Yukon vehicles built over an eight-year period.

In total, 18 U.S. deaths have been reported tied to Takata air bag inflators -- though none in GM vehicles.

To date, 15 U.S. deaths have been reported in Honda vehicles, two in Ford Motor (NYSE:F) Co vehicles and one in a BMW since 2009.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.