General Motors is recalling more cars and trucks, some 2.4 million, bringing the overall number this year to 13.6 million in the U.S. and that is a company record. GM said it will set aside another $200 million to pay for the latest recalls bringing the total recall cost for the year to $1.7 billion. The automaker said the latest round of recalls is part of a “continuing effort to quickly address emerging safety issues.” Involved in this latest call back are 2009-14 Buick Enclave, Chevy Traverse and GMC Acadia models. Plus 2004-08 Chevy Malibu and Pontiac G6 sedans and a much smaller number of 2015 Cadillac Escalades.
With the news, GM shares closed down Tuesday $1.18 or 3.4 percent.
AAA CEO Bob Darbelnet said the latest recall “highlights the disturbing number of potential hazards to drivers… that have come to light this year.” He said the auto club supports a move to increase from $35 million to $300 million the maximum fine that the National Highway Traffic Safety Administration can impose. Darbelnet said the $35 million “does not send a strong enough message.”
Dodge has announced the most powerful Challenger ever. It sports a 600 horsepower “Hellcat” supercharged 6.2-liter HEMI V8 that can be matched with either a six speed manual or eight speed automatic. It will comes with red and black key fobs with the red one the only selection that can extract all of the HEMI’s testosterone. The black one limits the driver to a reduced engine output. Production will begin in the third quarter. Torque and acceleration figures were not released.
Mazda reports that all 100 of its 25th Anniversary Edition MX-5 Miatas were sold in 10 minutes. The special edition arrives in late summer. Owners will receive a custom crafted Tourneau watch with a sapphire crystal face.
TransUnion reports that auto loan debt per borrower has increased for three consecutive years and totaled $16,862 on in the first quarter. It said the auto loan delinquency rate is up one percent from the first quarter of 2013 but remains at low levels.