General Motors is facing fresh pressure from the U.S. National Highway Traffic Safety Administration after reports that L87 V8 engines have continued to fail even following a prior recall repair. The NHTSA has opened a recall query covering approximately 597,571 vehicles equipped with the 6.2-liter L87 engine, including late-model Chevrolet Silverado and GMC Sierra trucks. GM must now provide detailed warranty data, failure rates and repair effectiveness to demonstrate that the updated piston rings and oil control components in its December 2024 fix have resolved the root cause. If regulators determine the remedy is insufficient, GM could be forced into a second, more extensive campaign—potentially adding hundreds of millions of dollars to its already elevated warranty reserves. The company’s cost of warranty claims rose by 12% year-over-year in Q4 2025, driven largely by powertrain issues, and further escalation could weigh on operating margins already under pressure from rising commodity prices and supply chain disruptions.

Despite regulatory concerns, GM closed out 2025 with solid momentum in its core business, leading the U.S. light-vehicle market with a 6% year-over-year sales gain. Full-year deliveries topped 2.4 million units, buoyed by record combined sales for the Chevrolet Silverado and GMC Sierra—GM’s best pickup performance in two decades—and marking its sixth consecutive year as the domestic leader in full-size trucks. All four GM brands posted growth: GMC achieved a second straight annual sales record; Cadillac recorded its strongest volume in ten years; and the company maintained a 51-year streak as the top seller in the full-size SUV segment. In the electrified arena, GM held the position of second-best-selling EV brand, trailing only the market leader. The automaker also moved nearly 700,000 Chevrolet and Buick models priced under $30,000, a strategic push that helped sustain demand while keeping incentive spending below industry averages and protecting margin profiles.