GM Recalls 426,000 Cars

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By Paul Ausick Published

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U.S. automaker General Motors Co. (NYSE: GM) said today that it is recalling 426,240 U.S. vehicles to fix a problem with the cars’ transmissions. The affected models are Chevrolet Malibu, Pontiac G6 and Saturn Aura built between 2007 and 2010.

The recall will also affect 40,029 vehicles in Canada and 7,572 in other markets around the world.

The problem affects cars with four-speed automatic transmissions. The transmission shifter may indicate that the car is in Park, but the gearbox may not match the indicated position, causing the car to roll. The company said it is aware of four crashes related to the problem, but that none has caused an injury.

GM said it will fix the issue by adding a reinforcement to the end of the shift cable to prevent the part from breaking.

The company is also recalling 6,475 Chevrolet Sonic subcompacts to repair a faulty turn-signal bulb. GM said it knows of no accidents related to this problem.

GM shares are down 1.3% at $24.50 in premarket trading this morning, in a 52-week range of $18.72 to $ 27.68.

Paul Ausick

Photo of Paul Ausick
About the Author Paul Ausick →

Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.

He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.

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