According to an announcement from General Motors Company (NYSE:GM) on Friday, the company asked car dealers to hold the shipment for Chevrolet Corvette because of two technical issues.
As many as 800 Corvettes are said to be affected by the delay because of faulty parking brake cables, as one of these cables are reportedly not installed correctly. General Motors Company (NYSE:GM) did not issue a public recall as the company plans to fix the problem before delivering it to the customers. The company further said that its technicians were resolve the problem and these technical issues didn’t lead to any accidents or crashes so far.
In addition to it, General Motors Company (NYSE:GM) plans to hold back as many as 2,000 Corvettes at its Bowling Green, Kentucky plant because of an airbagproblem. Alan Adler, spokesman for General Motors Company (NYSE:GM), said that the delay in Corvette shipment deliveries is an “effort to deal with quality issues quickly and completely.” These 2,000 Corvettes are under inspection because of a below-average component that connects the airbag to the steering wheel.
General Motors’s Corvette is the bestselling car of the company with 2,700 units sold in August itself and the sale of Corvette is 235% higher this year at 23,483. On an overall, 2014 has been a horrifying year for the company with nearly 60 different recalls and it has cost around $3 billion in the last two quarters along with $35 million paid in fines to the National Highway Traffic Safety Administration. General Motors Company (NYSE:GM)’s North American division reported earnings of $1.4 billion in the second quarter 2014 down from $2 billion during the same period last year, primarily because of $1 billion spent in recall costs.
This article has been written by Prakash Pandey.