Brake Assist Concerns: NHTSA Reportedly Probes 3,322 GM Cadillac Lyriq EVs
Portfolio Pulse from Shivani Kumaresan
The U.S. National Highway Traffic Safety Administration (NHTSA) is investigating complaints of brake assist loss in 3,322 General Motors Company (NYSE:GM) Cadillac Lyriq EVs from the 2023 production year. Reports indicate issues with a firm brake pedal and a 'Brake System Failure' notification. GM identified the cause as a potential fracture in the electronic brake control module's internal spindle during ABS events. GM plans to address this issue with an over-the-air update for affected vehicles. GM shares rose 0.33% to $43.22 following the news.
April 15, 2024 | 2:04 pm
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NEUTRAL IMPACT
General Motors is under NHTSA investigation for brake assist loss in Cadillac Lyriq EVs, planning an over-the-air update to address the issue. Shares increased slightly by 0.33%.
The investigation by NHTSA into GM's Cadillac Lyriq EVs for brake assist loss is a significant regulatory concern that could impact consumer confidence and future sales. However, GM's proactive approach with an over-the-air update to rectify the issue may mitigate negative impacts. The slight increase in share price indicates a neutral to slightly positive short-term market reaction, likely due to confidence in GM's handling of the issue.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100