NHTSA Probes 597,571 GM Vehicles Over Recurring L87 Engine Failures

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NHTSA has opened a recall query into about 597,571 GM vehicles equipped with L87 V8 engines after repeated engine failures despite a prior recall fix. This fresh regulatory scrutiny increases potential warranty and repair costs and may pressure GM’s margins and operating expense forecasts.

1. L87 Engine Failures Trigger Fresh NHTSA Scrutiny

General Motors is under renewed regulatory pressure after reports that a recall fix for its L87 V8 engine has not resolved failures in some vehicles. The U.S. National Highway Traffic Safety Administration (NHTSA) has opened a recall query covering approximately 597,571 GM vehicles equipped with the L87 engine, following multiple instances of engine stalls and oil pressure loss. The automaker initially issued a recall earlier this year to update engine software and replace faulty oil pump components, but customer complaints have continued, prompting the safety agency to demand detailed failure rates and corrective plans. GM now faces potential fines and further mandatory corrective actions if the investigation finds the recall remedy inadequate or slowed by insufficient parts availability.

2. 2025 Sales Surge Reinforces GM’s Market Leadership

Despite industry headwinds from changing trade policies, tariffs and the elimination of the federal EV tax credit, GM posted a 6% increase in U.S. retail sales for full-year 2025, leading the domestic auto industry. The company extended its streak as the top-selling full-size pickup manufacturer for the sixth consecutive year, with the Chevrolet Silverado and GMC Sierra achieving their strongest combined annual volumes in two decades. All four GM brands recorded gains: GMC set a new annual sales record, Cadillac delivered its best performance in ten years, and Chevrolet and Buick moved nearly 700,000 entry-level models with starting prices under $30,000. GM also claimed its 51st straight year as the market leader in full-size SUVs and ranked as the second-best-selling electric vehicle brand in the United States.

Sources

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