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The Markets
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The Markets
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The Markets
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Manufacturing & engineering

GM slumps to three-year low on airbag recall rumours

Some 20 million GM vehicles could be affected, the WSJ said

Shares in General Motors Company (NYSE:GM) plunged on Thursday, as reports emerged that some 20 million of its vehicles could have been built with faulty airbags.

According to the Wall Street Journal, GM is likely among the most exposed to an issue in airbags supplied to manufacturers by ARC Automotive of Tennessee.

Millions of GM cars could face a recall as a result, with the issue relating to around 52 million inflators in ARC’s systems.

GM shares faced a hit as a result, falling 2.4% to US$30.31 as the market closed - its lowest since September 2020.

Though The National Highway Traffic Safety Administration is yet to release details on the number of cars or which models could be involved in a recall, issues with the airbags are said to have been lethal.

At least two people have been killed as a result of the issue, which sees the airbags deploy with too much force, the Wall Street Journal said.

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