GM Potentially Faces Large Warranty Issue with 877,710 SUVs and Trucks
Investigation by NHTSA
The National Highway Traffic Safety Administration (NHTSA) has launched a preliminary investigation into engine failure affecting 877,710 GM SUVs and trucks equipped with the L87 6.2L V8 engine. The investigation stems from 39 complaints and early warning field reports alleging bearing failures that can seize the engine or breach the engine block without warning.
Affected Vehicles
The investigation includes certain L87-equipped versions of the following models:
* 2019-2024 Chevrolet Silverado 1500 and GMC Sierra 1500 pickups
* 2021-2024 Chevrolet Tahoe, Chevrolet Suburban, GMC Yukon, and Cadillac Escalade SUVs
Potential Risks
The NHTSA indicates that engine failure can result in loss of power, increasing the risk of a crash.
GM's Response
A GM spokesperson has emphasized the company's commitment to customer safety and satisfaction and stated that they are cooperating with the NHTSA's evaluation.
Recall Possibility
An ODI investigation typically precedes a voluntary recall, wherein the manufacturer addresses defects that pose safety concerns.
Previous Issues
Similar engine bearing failures were reported by owners last August, leading to a lawsuit seeking class-action certification. In April, GM issued a customer satisfaction program to replace certain L87 engines in 2023 vehicles for owners experiencing oversized lifter bore issues.
Financial Implications
If a recall is necessary, GM would likely incur significant costs to repair connecting rod bearings or replace engines in approximately 878,000 vehicles.
Outlook
GM is scheduled to release its fourth-quarter financial results on January 28th, which will include an update on warranty costs.