GM Recalls 43K SUVs Over Transmission Defect That Could Lock Rear Wheels

General Motors Co. (NYSE:GM) has issued a recall of multiple SUVs in its lineup due to a transmission issue that could cause the rear wheels to lock up.

43K Vehicles Recalled

GM is recalling the 2022 Chevrolet Tahoe and Suburban, the GMC Yukon and Yukon XL, as well as the Cadillac Escalade and Escalade ESV SUVs equipped with the company's 10-speed automatic transmission, the company said in its acknowledgement to NHTSA on Thursday.

The recall was issued due to a problem with the transmission control valve, which could fail and lock up the rear wheels. The report to NHTSA says that the dealers would issue the remedy free of charge by installing a new transmission control module (TCM) software.

GM's $63 Million Investment, Silverado EV Commitment

The news comes as GM announced a $63 million investment in stamping operations at the Oshawa Assembly plant in Ontario, Canada. The investment will help enhance the company's production of full-size gasoline-powered pickup trucks.

Meanwhile, the company also reaffirmed its commitment to EVs, with Chevrolet’s Director of Communications, Shad Balch, saying that the company has no plans to sunset the Chevrolet Silverado EV.

Trump's CAFE Provision Pullback

However, automakers' commitment to all-electric vehicles faces a fresh challenge as President Donald Trump's Department of Energy (DOE) rescinded the fuel content factor provision in the Corporate Average Fuel Economy (CAFE) standards.

The agency concluded that the provision assigned unrealistic efficiency figures for EVs, translating into higher fleet-wide fuel economy figures. The pullback could make EVs less attractive for automakers to manufacture.

Benzinga Edge Rankings show that General Motors scores well on the Momentum metric and offers a favorable price trend in the Long Term.

Price Action: GM declined 2.63% to $81.47 at Market close on Thursday. It was up by 0.41% in pre-market trading on Friday.

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