One of America’s “big three” automotive companies is facing some significant financial and potential legal problems. GM has a long and prosperous history as one of the United States’ biggest automotive manufacturers; however, the tumultuous nature of the auto industry, particularly in America, has seen General Motors having to contend with emerging competition from outside the United States. And the quality control issues have been forced to the surface after a recent recall and a potentially disastrous lawsuit against GM.
What has brought this latest recall to the public’s attention?
GM has produced some truly outstanding cars over its long and illustrious history. GM was founded in 1908 by William C. Durant. The automotive giant was initially focused on acquiring other brands to operate under their watchful eye. In the early days, they consisted of several American car makers such as Chevrolet, Cadillac, Buick, and later GMC, which, through some effective branding and marketing, became household names in the United States.
As with all innovation and progression, there were some problems to contend with. Chief among which were several recalls that led some of the buying public that made GM such a resounding success, to question the build quality of GM’s flagship brands. Recalls are common in the automotive industry, and maintaining the high level of quality that GM has become known for is, at times, challenging.
The latest recall comes after some customers have made reports accusing GM of having prior knowledge of an engine issue, and chose to sell the engine anyway. 25V-274 recall from the National Highway Traffic Safety Administration states that GM had known about their engines reportedly seizing up while in use, and chose not to remedy the issue, possibly for years.
What has caused the recall and subsequent lawsuit against General Motors?
The problem stems from the V8 engine used in Chevy, Cadillac, and GMC vehicles built between 2021-2024. The recall affects 600,000 large SUVs and trucks in America and 721,000 vehicles globally. So the problem is not limited to the GM plant in Tennessee and affects GM’s global brand as well. The engine problems that resulted in the recall have been reported by customers for years now, so the problem has deeper roots than previously thought.
The lawsuit could have a much more tangible effect on GM. Case No. 2:25-cv-10479 was brought forward by a group of customers who bought or leased a vehicle that used the defective L87 V8 engines. The case states that the problem is that the engine gives no prior warning before seizing, creating a potentially dangerous situation if the driver is on the road while the engine gives way.
The engine engineering sector in America is growing as new manufacturers aim to compete with the “big three” that dominate the United States mobility market. The recall and lawsuit are the cherry on top of a very distasteful cake for General Motors. One wonders what the effect of the lawsuit might be on the company’s bottom line. The recall alone affects more than half a million vehicles made by GM and its subsidiaries.
How will General Motors recover from the latest recall and lawsuit?
The American automaker is faced with a litany of issues at the moment. Having to wonder if their SUV or truck will stop working at some random moment while driving will surely be distressing for any customer. GM is worth $46,95 billion; however, that position atop the automotive sector in America could be coming to an end if more recalls and lawsuits are brought against them. The GM lawyers and PR teams will surely be working on a plan or two to circumvent the latest recall and subsequent lawsuit. How will GM react to both?
