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General Motors Company (NYSE:GM)’s Recalls 100,000 Faulty Cadillacs In China

Boston, MA 09/29/2014 (wallstreetpr) – General Motors Company (NYSE:GM) recalled over 100,000 Cadillac SRX SUVs from the company’s biggest market. The automaker made the recall in China because of defective rear suspension module.

Indicated Defects

GM’s Chinese joint venture, Shanghai General Motors Company (NYSE:GM), seeks to recall and repair as many as 107,016 sport utility vehicles that were manufactured within the period from July, 2009 and August, 2014. The complaints in the vehicles highlighted that the vehicles had loss to adjusters, and the problem posed a serious danger. The highlights of the faults with the SUVs were indicated on the company’s website by the General Administration of Quality Supervision, Inspection and Quarantine, or AQSIQ.

According to a Bloomberg article, General Motors Company (NYSE:GM) said that the fault can cause the vehicle to wander or sway at high speeds. The problem is also capable of activating the car’s electronic stability-control system and result in severe wear to link-threads. In addition, the rear suspension could make metallic noises of high pitches, especially in areas having potholes or bumps. There is a fear that if the link threads wear out, it may cause a break in the link.

Previous Incidences

The present recall continues from GM’s previous similar incidents that led the company to call back around 300,000 vehicles in the U.S. As part of the move, the automaker had also issued a stop-sale notice for unsold stock. Apart from this, the company has marked over 29 million cars in North America in 2014 which require repairs. In February, the company had organized a major recall of small cars, because of faulty ignition switches. Because of all the events, which also involved fatal accidents and deaths, General Motors Company (NYSE:GM) had to face a justice Department probe.

General Motors Company (NYSE:GM)’s spokeswoman, Dayna Hart, said that the company knew about three accidents and two injuries. She however said that it was unaware of the place where the incidents occurred.

Gm announced that it expects sales of the Cadillac vehicles to surge to 70,000 in 2014 and to 100,000 by 2015.

Published by Van Bettauer

Van Bettauer is a financial aficionado from Vancouver, British Columbia. He currently studies at UBC, pursuing a Bachelors of Science degree. Van has been freelance writing for many years, specializing in copywriting, report writing and article writing. The combination of his scientific studies and writing experience brings a new and fresh perspective to the financial world. Visit Bettauer's Google+ page at the following address: https://plus.google.com/100770875710593766367/posts

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