General Motors
(MTLQQ) plans to recall about 250,000 crossover globally in order to inspect and fix their second-row seat belts. The recall involves 2009-2010 models of the Chevrolet Traverse, Buick Enclave, GMC Acadia and Saturn Outlook. These vehicles are sold in the U.S., Canada, Mexico and elsewhere.
 
The automaker noticed that there are chances of the seat-belt buckle getting damaged when the seats are pushed back to their normal position. As a result, this could cause the buckle to appear to be latched when it isn’t. However, GM is unaware of any cases where the second-row seat belts failed to perform correctly in a crash.
 
Since the beginning of the year, GM has recalled about 3 million vehicles in the U.S., Canada, Mexico and South Korea. Among these, the largest recall was made in June, involving 1.5 million vehicles. This was done in order to fix a problem with a heated windshield wiper fluid system that has been causing fire in the vehicles.
 
The June recall affected 2006 to 2009 model years of Buick Lucerne, Cadillac DTS, and Hummer H2; 2008-2009 Buick Enclave and Cadillac CTS; 2007-2009 Cadillac Escalade, Escalade ESV and Escalade EXT; 2007-2009 Chevrolet Avalanche, Silverado, Suburban and Tahoe; 2007-2009 GMC Acadia, Sierra, Yukon and Yukon XL; 2007-2009 Saturn Outlook; and 2009 Chevrolet Traverse.
 
This is GM’s second recall over the same issue in two years. In August 2008, the automaker recalled 900,000 vehicles due to a heated washer fluid system on the back of a short circuit on the circuit board that overheated the ground wire in the vehicles.
 
Automotive safety recalls have become the talk of the town after Toyota Motors’ (TM) announcement of the largest-ever global recall of more than 8.5 million vehicles since October last year. The Japanese automaker’s recall was related to problems such as faulty accelerator gas pedals and slipping floor mats as well as defective braking systems.
 
The string of recalls has led Toyota to face numerous personal injury and wrongful death lawsuits in federal courts. The U.S. government has also imposed the highest-ever fine of $16.4 million on Toyota, accusing it of a deliberate delay in recalling the vehicles by hiding its flaws even though manufacturers are legally obligated to notify the U.S. safety regulators within five business days once they come to know of a safety defect.

 
MOTORS LIQUIDAT (MTLQQ): Free Stock Analysis Report
 
TOYOTA MOTOR CP (TM): Free Stock Analysis Report
 
Zacks Investment Research