General Motors announced earlier this week that the company is recalling 1.4 million of its vehicles due to increased susceptibility to catch fire from oil leaks. All the vehicles covered by the recall contain 3.8 liter V6 engines and model dates range between 1997 to 2004. GM has previously recalled these vehicles twice before. Consumers are encouraged to check if their vehicles are covered at recalls.gm.com.
This most recent issue stems from valve cover gasket degradation, which causes oil to secrete onto the exhaust manifold, sometimes sparking a fire. According to National Highway Traffic and Safety (NHTSA) reports, most of the fires occurred a few minutes after the engine had been shut off by the user. A reported 267 fires have been caused by these vehicles, with 17 of them resulting in nearby buildings and homes being damaged by the flames.
Owners of the suspect vehicles are not the only ones who may suffer from the recall. Shareholders are at risk, too. After its stock was relisted on the New York Stock Exchange in November of 2010 as the company emerged from bankruptcy, a surge of investor support buoyed its stock price, which has remained reasonably steady since then. Yet a string of safety problems in recent months, from the mammoth ignition defect scandal to the current recall, is testing consumer patience and putting in doubt the reliability of its vehicles. The market is sure to take notice.
If you or someone you know has suffered physical or financial harm as a result of a defective automobile or other product, it is essential you understand your rights under the law. Contact an attorney at Abraham, Watkins, Nichols, Agosto, Aziz & Stogner by calling 713-396-3964 or toll free at 800-594-4884 for a confidential consultation.