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GM Recalling Another 2.7 Million Vehicles In Five Separate Campaigns

The recalls keep rolling in from General Motors, evidently keen to avoid repeating the mistakes of the ignition-switch debacle and clean house. This time they're all coming at once, with five separate recalls announced together covering approximately 2.7 million vehicles. The largest of the five actions involves over 2.4 million units of the previous-generation Chevrolet Malibu and Malibu Maxx, Pontiac G6 and Saturn Aura in order to fix brake light wiring harness, which have been found to be susceptible to corrosion. The recall is separate from the 56k Aura sedans which GM recently recalled over faulty shift cables, not to mention the previous massive recall of 1.3 million vehicles – some of them the same models – but appears to have resulted from the National Highway Traffic Safety Administration investigation that started with the G6 almost a year ago. The second-largest campaign involves the 2014 Chevy Malibu, specifically those fitted with GM's 2.5-liter engine and stop/start system, approximately 140,000 examples of which has been found to have problematic brakes. The issue does not appear to be connected to the recall of 8k Malibu and Buick LaCrosse sedans (also involving brake woes) which we reported upon last week. Four crashes have been reported in such models, but GM admits it's not yet clear if the problem was a contributing factor in the accidents. A further 112k Corvette models from the 2005-2007 model years are being called in for problems with their low-beam headlamps resulting from a flexing relay control circuit wire that's not meant to bend. GM says it is "aware of several hundred complaints" about this issue, but notes that there have been no reports of related accidents. In addition, over 19k examples of Cadillac CTS from the 2013 and 2014 model years are being recalled over windshield wipers that might not work after a jump start. Finally, GM is also bringing in 477 examples of its 2014 Chevy Silverado, Tahoe and GMC Sierra (though not the Yukon) to fix a problem with a tie rod in its steering rack. As ever, all recall repairs will be performed free of charge, and GM is now estimating that recall-related actions this quarter will result in an estimated $200-million charge against its second-quarter earnings. Read the full announcement from GM below for further details.

A few signs that Cadillac's revival is taking hold

Only a flatworm would not have predicted the Cadillac ATS would help increase sales for America's erstwhile luxury brand of record; however, even the best automotive oracles didn't realize by how much: The ATS fueled a 49-percent increase of the brand's year-on-year sales in March, the sixth straight month of growth for Cadillac. The momentum helped push General Motors to post a 6.4-increase in sales in March versus 2012, leading its domestic competitors.
Dealership salesmen are among the first to register the shift occurring at Cadillac. A Texas dealer related an incident in which he helped a mother affix a baby seat in a car for a test drive, explaining that as opposed to the older buyers that are still a Cadillac mainstay he's getting "a pretty diverse group that's coming through the door now" who are "younger and better educated." Aided by incentives on the ATS, Cadillac's sales are up 38 percent so far this year, overtaking Acura as the fourth best selling luxury brand, and GM stock is benefiting with incremental gains because of it. Based on early response, the new 2014 Cadillac CTS should keep things going in the same direction.
The trend at the Wreath and Crest is part of a larger sales trend happening among domestics - with other models like the Dodge Dart and Ford Fusion doing well - and overall US car sales. Head over to Bloomberg for the big picture and role the ATS plays in it.

Weekly Recap: New bosses try to jump-start Cadillac and Lincoln

Both of America's domestic luxury brands seem to be stuck in neutral.
It's ironic that Cadillac and Lincoln got new bosses within days of each other this month. It's also a commentary on the fact both of America's domestic luxury brands seem to be stuck in neutral.