U.S. Auto Safety Regulators Probe Nearly 900,000 GM Vehicles For Engine Failure
Engine failures in almost 900,000 GM vehicles are being probed by the Feds, according to a new report from the New York Post.
U.S. auto safety regulators are investigating 877,710 General Motors vehicles with L87 V8 engines, including the popular Silverado, following 39 complaints of sudden engine failure.
The National Highway Traffic Safety Administration (NHTSA) said the failures occur without warning, posing a crash risk. The issue, linked to bearing failures, can cause the engine to seize or a connecting rod to breach the engine block.
The Post writes that the preliminary investigation covers several General Motors models, including the 2019-2024 Chevrolet Silverado 1500, 2021-2024 Chevrolet Tahoe and Suburban, 2019-2024 GMC Sierra 1500, 2021-2024 GMC Yukon and Yukon XL, and 2021-2024 Cadillac Escalade and Escalade ESV.
In 2024, GM led U.S. auto sales with a 4.3% year-over-year increase, its best performance since 2019. The Silverado pickup was the second-best-selling vehicle in the country that year.
Last month we wrote that GM may pivot to more buybacks and a renewed focus on an end to end AI in its vehicles.
Deutsche Bank analyst Edison Yu wrote in December that GM’s move to integrate its Cruise division into its core business will be welcomed by investors as GM can reallocate resources to its aggressive share buyback plan, aiming to reduce share count below 1 billion by early 2025, and prioritize investments in Level 3+ and Level 4 autonomy, which have quicker monetization potential.
Yu also noted GM’s pivot in Cruise’s technology strategy, with the company now leveraging end-to-end AI models rather than its earlier rules-based approach, signaling a significant evolution in its autonomous vehicle efforts.
Yu commented on GM’s decision to acquire the remaining 10% of Cruise and integrate its development under GM’s operations.
The move shifts focus from costly robotaxi commercialization to advanced driver-assistance systems (ADAS), like Level 3 autonomy for consumer vehicles. GM cited the high cost of scaling robotaxis, potentially in the tens of billions, as a key reason for the pivot, deeming it a poor risk/reward investment.
GM aims to complete the restructuring by early 2025, leading to annual savings of over $1 billion, reducing Cruise’s current $2 billion spend.
Tyler Durden
Wed, 01/22/2025 – 21:20
