The U.S. National Highway Traffic Safety Administration (NHTSA) announced on Friday (January 17th) that it has initiated a preliminary investigation into 877,000 vehicles produced by General Motors after receiving reports of engine failures.
The investigation includes Chevrolet Silverado, GMC Sierra, Chevrolet Tahoe, Chevrolet Suburban, GMC Yukon, and Cadillac Escalade trucks and SUVs equipped with the L87 V8 engine manufactured between 2019 and 2024.
According to the automotive safety regulator, complainants reported bearing failures that could potentially result in engine stalling or connecting rod penetrating the engine block.
Engine failure or stalling could lead to loss of power in the vehicle, increasing the risk of accidents. However, the NHTSA report indicated that there have been no reports of accidents or fires related to this issue so far.
The automotive safety regulator received 39 complaints and numerous warning reports from vehicle owners. Owners also mentioned that they did not observe any abnormalities before the engine failures.
The Office of Defects Investigation at the National Highway Traffic Safety Administration has launched an investigation, conducting a preliminary evaluation to determine the scope and severity of the potential issues and will undertake a comprehensive assessment of any safety concerns.
In recent years, General Motors has faced poor performance in its joint ventures in China, leading the company to write down assets and incur restructuring costs in the fourth quarter of 2024, totaling over $5 billion.
The Detroit-based automaker stated in regulatory filings on December 4th that it would reduce the equity value of its Chinese joint ventures by $2.6 to $2.9 billion in early 2025 when announcing its performance. Additionally, General Motors will bear $2.7 billion in restructuring costs, with a significant portion incurred in the fourth quarter of 2024.
(Reference: Reuters)