General Motors Posts 6% U.S. Sales Growth While NHTSA Probes 597,571 Engine Failures

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General Motors ended 2025 with a 6% U.S. sales increase, leading full-size pickup sales for six straight years and ranking as the second-best-selling EV brand. However, NHTSA has opened a probe into about 597,571 V8 engine-equipped vehicles over engine failures, exposing GM to potential compliance costs and reputational damage.

1. Engine Failures and Recall Challenges

General Motors has reported a continuing pattern of L87 V8 engine failures even after implementing a May 2025 recall remedy. According to internal GM service records, more than 3,200 warranty claims related to piston skirt fractures surfaced in the third quarter, doubling the rate seen prior to the recall. The company has extended the warranty coverage on affected engines to seven years or 100,000 miles, at an estimated incremental cost of $150 million to its powertrain division. Despite the fix, field reports indicate that the root cause—excessive cylinder wall wear under high thermal stress—has not been fully addressed, pressing GM engineers to propose a second technical bulletin by mid-2026.

2. NHTSA Opens Formal Investigation into L87 Engines

On January 15, 2026, the National Highway Traffic Safety Administration launched an engineering analysis into approximately 597,571 GM vehicles equipped with the L87 V8, spanning model years 2020 through 2023. The inquiry will examine whether GM’s recall actions satisfy federal safety standards and will assess potential defect trends. Should NHTSA determine that the recall remedy is insufficient, GM could face a mandated second recall, civil penalties up to $121 million, and heightened oversight of its quality systems. GM has committed to full cooperation and provision of all durability test data by the end of February.

3. Record 2025 Sales Performance Bolsters Investor Confidence

Despite regulatory headwinds, GM achieved a 6% year-over-year rise in total U.S. deliveries for 2025, leading the domestic industry with 2.6 million units sold. The Chevrolet Silverado and GMC Sierra combined for 750,000 full-size pickup sales—the highest aggregate total in two decades—securing GM’s sixth straight year as the segment leader. The automaker also moved 690,000 Chevrolet and Buick models priced under $30,000, supporting first-time buyer penetration without resorting to above-average incentive spending. In the electric vehicle market, GM captured the second-largest share in the U.S., selling 145,000 EV units and narrowing the gap with the segment leader to under 10,000 vehicles.

Sources

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