And the hits just keep on coming for new CEO Mary Barra. By now she must be suspecting Dan Akerson threw her under the bus as he left the sinking ship. On the heels of all-time record high inventories (over-built amid a frenzy of mal-investment last year), massive recalls (amid ignition switch problems linked to 12 deaths), and potential bankruptcy fraud, GM announced today that it has instructed dealers to stop selling 2013 and 2014 Chevrolet Cruzes but gave no reason for the halt.
“I can just confirm that we put a stop-sale in last night,” GM spokesman Alan Adler said.
He said he did not have any details on why the action was being taken, but said stop-sale orders can happen for various reasons. He said stop-sale orders mean the dealers need to do something to the vehicle before it can be sold.
Chevrolet dealers received a stop-delivery via email Thursday advising them to halt sales of Cruze models with 1.4-turbo engines, according to a copy of the notice viewed by The Wall Street Journal. A reason for the notice wasn’t provided.
“This is something we don’t see every day,” said one dealer who asked not to be identified since he shared the internal document. “To not be given a reason must mean GM has spotted an issue and is still trying to get its arms around it.”
A GM spokesman confirmed a notice was sent late Thursday but declined to provide details. Automotive News reported the stop-delivery order earlier Friday. The notice affects only 1.4 Liter turbo charge Cruze.
The number of vehicles impacted could be relatively small since the notice only covers 60 days worth of production.
If we build it (and stack them high on dealer lots) they won’t come if they fear spontaneous combustion…
GM Chief Executive Mary Barra is scheduled to testify to both chambers of Congress next week as members of the House and Senate seek to learn how the problem did not result in a recall earlier despite being first noted within the company in 2001.
Bring your popcorn…
via Zero Hedge http://ift.tt/1hibc4r Tyler Durden