General Motors is facing renewed scrutiny from the U.S. National Highway Traffic Safety Administration after approximately 597,571 trucks equipped with the L87 V8 engine experienced failures even after a prior recall remedy. The NHTSA has opened a recall query to determine whether additional corrective actions or a full vehicle recall are warranted. GM’s internal estimates suggest that repairing or replacing affected engines could cost the company up to $1.2 billion, excluding potential fines or penalties. Investors should note that prolonged regulatory engagement could weigh on GM’s free cash flow in the near term and raise borrowing costs as lenders factor in contingent liabilities.

Despite headwinds from changing trade policies, tariffs and the loss of the $7,500 federal EV tax credit, GM achieved a 6% increase in U.S. retail deliveries in 2025, leading the domestic auto industry for the year. The Chevrolet Silverado and GMC Sierra posted their best combined annual sales in two decades, securing GM’s sixth straight year as the top full-size pickup seller. All four GM brands saw growth, with Cadillac logging its highest volume in ten years and GMC setting a second consecutive annual record. GM also sold nearly 700,000 Chevrolet and Buick units priced below $30,000, while holding incentives at 1.8% below the industry average. The automaker finished 2025 as the second-largest EV brand in the U.S., trailing only Tesla, underscoring its ability to balance affordability, margin protection and electric vehicle expansion.