On August 30, 2018, General Motors announced a recall on 210,628 vehicles in the United States and 19,385 vehicles in Canada because of an issue involving brake pedals. This recall affects different 2018 and 2019 models including the Chevrolet Bolt, Cruze, Equinox, Impala, Malibu, and Volt. It also affects the 2018 and 2019 models of the Buick Cadillac XTS, LaCrosse, Regal, and GMC Terrain as well. Let’s just say this is a huge recall that appears to have had an impact of GM’s stock. It has been heading south since the recall. Why? Recalls cost a lot of money that should be in the pocket of shareholders.
Why the recall?
The cars recalled had rear-brake pistons that were improperly chromed and tempered during the manufacturing process. This can cause hydrogen gas to be trapped inside the piston. If the piston containing hydrogen gas contacts brake fluid, this gas can be released into the vehicle’s overall brake system. This can affect rear-brake performance and increase crash risk.