There is trouble brewing in GM City.
Over the last few years, the GM 5.3 V-8 engine has had serious-dollar warranty work done due to a hardening problem in the camshaft-lifter-valve area. That's #1 problem.
In the last few months, GM has announced another camshaft-lifter-valve problem with its 6.2 V-8. This is a de-tuned version of the Corvette engine, and it is placed in Cadillac Escalades along with some Suburbans, Tahoes, and Silveradoes. GM sent out a recall originally suggesting that serious-dollar work be done on the engines, but later changed that to a "change the oil and inspect" directive. That's #2 problem.
Finally, across a wide spectrum of GM products, there are parts shortages--anywhere from "irritating" to "unbelievable" wait-times. This has caused GM to drop its 30-day free-loaner-car limit; now, for certain problems, customers may drive the loaner for as long as it takes. That's #3 problem.
This does not bode well for GM in the short- or long-term. In the short-term, warranty costs will happen no matter how GM tries to manage the impact. That "change the oil and inspect" order is designed to stiff-arm serious warranty costs into the next couple of years. Will it fix the problem? Who knows??
In the long-term, however, parts unavailability combined with recalls and replacements across a range of GM product will have an effect on sales. There are alternative products which do not have a 'reliability problem' that sell for similar dollars. This long-term problem will affect GM sales for years.
By then, of course, Mary Barra will have cashed out her options. Let the next Chair pay!
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