Core Insights - General Motors (GM) is experiencing significant issues with its L87 6.2L V8 engine, which has led to federal safety regulators and vehicle owners raising concerns about engine failures even after a recall fix [1][10] Recall Details - In April 2025, GM recalled approximately 721,000 vehicles globally due to engine issues, with nearly 600,000 of these vehicles in the U.S. equipped with the problematic L87 engine [2] - The recall aimed to address serious internal issues, including manufacturing defects in connecting rods and crankshafts that could lead to engine seizure [3] - The remedy involved a two-step process where technicians inspected the engine and replaced it if damaged, or drained and refilled the oil with thicker 0W-40 oil if no damage was found [4] Ongoing Issues - As of January 2026, 36 vehicle owners reported engine failures despite having their vehicles inspected and fixed under the recall [5] - The National Highway Traffic Safety Administration (NHTSA) has opened a recall query (RQ26001) to investigate the adequacy of the previous solution and assess reports of sudden engine failures [6][7] Legal and Regulatory Pressure - A class-action lawsuit has been filed against GM, claiming that the recall caused confusion and that the fix may not be sufficient to prevent future problems [7] - The ongoing failures of the L87 engine have raised serious questions about the effectiveness of GM's remedy, increasing pressure on the company to provide a permanent solution [7] Competitive Context - Rivian Automotive is recalling 19,641 R1 vehicles for a rear suspension issue, while Ford has recalled over 272,000 hybrid and EVs due to a software issue affecting the Integrated Parking Module [8][9] Stock Performance - GM shares have increased by 51.9% over the past six months, outperforming the industry growth of 33.6% [13] - GM currently trades at a forward price-to-sales ratio of 0.41X, which is lower than both the industry average and its own five-year average, and holds a Value Score of A [14]

Group 1 - The National Highway Traffic Safety Administration (NHTSA) has initiated a probe into nearly 600,000 General Motors Co. vehicles due to reports of engine failures [1] - The investigation focuses on the L87 6.2L V8 engines, affecting models such as the 2021-2024 Cadillac Escalade, Chevrolet Silverado, Suburban, Tahoe, GMC Sierra 1500, Yukon, and Yukon XL [2] - The NHTSA's Office of Defects Investigation (ODI) received 36 Vehicle Owner Questionnaires alleging engine damage or failure following a recall last year [3] Group 2 - General Motors has relocated to a new headquarters in Detroit, which is significantly smaller in square footage compared to the previous headquarters, the "Renaissance Center" [4] - CEO Mary Barra has reaffirmed GM's commitment to electric vehicles (EVs), describing them as the company's "North Star," despite recent layoffs of over 3,400 workers across multiple EV production facilities [5] - GM's stock price increased by 0.02% to $80.84 during after-hours trading on January 16 [6]