Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

General Motors Company (GM - Analyst Report) announced its second recall in China this year. The recall covers almost 1.5 million cars produced in China by the Shanghai General Motors, General Motors’ Chinese joint venture with SAIC Motor.

The recall includes 1.2 million Buick Excelles produced from 2006 to 2012, 250,000 Chevrolet Sails manufactured from Apr 2009 to Oct 2011 and some vehicles produced in 2012. These are the most popular models of General Motors in China.

General Motors had to recall the vehicles to replace a faulty fuel-pump bracket. The Administration for Quality Supervision, Inspection and Quarantine believes that the bracket might break after extensive use and in worst cases may even lead to leakage of fuel.

However, this is not the first time that General Motors is recalling vehicles from China this year. In May 2013, the automaker recalled 2,653 imported Cadillac SRX sport utility vehicles to fix nuts on wheels. It was feared that the nuts might loosen due to torque.

International automakers are focusing on China owing to rising demand in the Chinese market. Apart from SAIC Motor, General Motors also operates in the nation with its partner FAW Group. On the other hand, Ford Motor Co. (F - Analyst Report) has joint ventures with Changan Automobile and Jiangling Motors in China.

However, not only General Motors, other automakers too are recalling vehicles in China for several reasons. It has been reported that, Ford’s joint venture with Chongqing Changan Automobile will be recalling around 81,000 cars from China. The recall is being made due to problems in a steering part.

Furthermore, Volkswagen AG (VLKAY) issued two recalls in China in Nov 2013. One of these was a recall of 640,309 cars and minivans to replace the synthetic oil in their transmissions with mineral oil. The company believes that the use of synthetic oil might lead to electrical problems. In Oct 2012, Toyota Motor Corp. (TM - Analyst Report) recalled 1.4 million vehicles in China as part of its massive global recall of 7.4 million.

Leading automaker General Motors currently carries a Zacks Rank #3 (Hold).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%