HAZARDOUS AIRBAG: General Motors faces recall of 20 million vehicles

10/09/2023 / By Richard Brown

General Motors (GM) is facing the grim possibility of recalling approximately 20 million vehicles equipped with a potentially hazardous airbag component, according to the Wall Street Journal (WSJ). Government authorities have urged for these vehicles to be recalled to prevent further harm or fatalities.

This development places GM among the companies most affected by the U.S. auto-safety regulators’ push to recall around 52 million airbag inflators produced by the Tennessee-based auto supplier ARC Automotive.

These inflators have been associated with incidents where they explode with excessive force during vehicle collisions, causing metal fragments to strike vehicle occupants and resulting in fatalities and injuries.

The National Highway Traffic Safety Administration (NHTSA) has not yet publicly disclosed the exact number of GM vehicles affected or the specific models involved. The overall scope of the recall may extend to more GM cars and trucks depending on the regulatory process. (Related: BMW issues “do not drive” order for 90,000 vehicles due to defective airbags that can explode metal fragments into your face.)

NHTSA has convened a public meeting to discuss the determination that the airbag parts are defective and warrant a recall.

ARC has disputed the regulatory request, leading to the unusual step of scheduling a hearing to formally order a recall.

Apart from GM, 11 other automakers, including Ford, Volkswagen, Toyota and Hyundai, have vehicles equipped with ARC airbag inflators covered by NHTSA’s action.

Some known airbag explosions have occurred in GM vehicles, resulting in at least one fatality and multiple injuries.

GM has previously conducted five recalls over six years for vehicles containing ARC-made airbags, with the latest recall happening earlier this year.

The issue with these inflators, manufactured between 2000 and 2018, arises from blockages that can develop in a vent designed to release stored gas, which may lead to excessive pressure buildup and explosions upon activation during a collision.

NHTSA estimates that the future rupture rate for these airbag inflators is approximately one out of every 370,000 deployments. NHTSA investigators emphasized the unpredictable timing and associated risks, urging a recall of the entire affected population.

GM has stated that it continues to investigate the airbag component issue and is working on developing a remedy for the recalled vehicles. In the meantime, affected vehicle owners can continue driving, with necessary replacement parts to be provided once a solution is available.

The NHTSA initiated its investigation into these faulty inflators over eight years ago, prompted by incidents involving injuries and fatalities caused by metal fragments from airbag explosions, similar to the Takata airbag recall crisis that affected millions of vehicles.

A recall of 20 million cars would rank among the largest in U.S. history and has caused GM’s stock to decline in response to the news.

GM’s stock price down due to strike, potential airbag recall

During intraday trading on Thursday, Oct. 5, GM’s stock price fell below $30 a share for the first time in more than three years amid the ongoing strikes by the United Auto Workers and a potentially costly airbag recall.

The last time GM shares dropped below $30 was on Oct. 2, 2020, according to FactSet.

Since the union’s targeted strike, shares of the Detroit automaker have fallen by about 10 percent with the most recent share decline happening following the WSJ report. The strike is entering its fourth week since more than 17,000 AUW members put down their tools.

The union is demanding a 46-percent pay increase; a 4-day work week with overtime pay beyond 32 hours; union representation at new electric battery plants; and the end of employment tiers that created two classes of employees – one older that is better paid and receives more benefits and a second, younger tier composed of those hired after 2007.

Learn more about cars and their possible defects at RoboCars.news.

Watch this clip blaming Bidenomics for the UAW strike.

This video is from the Justin Barclay channel on Brighteon.com.