General Motors share price up, recalls 155 000 vehicles in India

General Motors Co announced on Monday it will recall 155 000 Chevrolet vehicles in India starting next week to fix a faulty wiring in a remote keyless entry part.

The recall, the companys biggest in the country, will cover the Chevrolet Spark and Beat hatchbacks and the Chevrolet Enjoy minivan. It affects certain vehicles manufactured between 2007 and 2014 that were fitted with a faulty remote keyless entry accessory, a feature that allows owners to open their cars without the use of a traditional mechanical key.

The gadget “meets all the relevant regulatory standards; however, GM India has been made aware of some isolated cases where certain Chevrolet Spark, Beat and Enjoy vehicles were fitted with a faulty accessory,” the company said in a statement. As a result, the impacted cars could experience damage “due to inappropriate routing”, it added.

GM said it will contact all affected car owners to carry out the repairs free of charge at the companys service centers across the country. Many affected customers have reportedly already received letters requesting them to visit the nearest service center, while a GMI spokesperson said that if owners not identified as affected by the issue have any concerns regarding their car, they may visit the nearest Chevrolet dealer.

The recall, one of Indias biggest, follows a similar procedure in July 2013 when General Motors recalled 114 000 Tavera sports utility vehicles over faulty reporting of emission results, while two months later it pulled back 4 000 diesel Chevrolet Sail vehicles to replace a faulty engine part.

“Quality is our highest priority and we are committed to putting customers at the center of everything we do,” said Arvind Saxena, GMI President and Managing Director. “If there is a potential issue, we ensure that it is corrected as soon as possible as part of our complete commitment to customer satisfaction.”

General Motors Co traded 1.13% higher at $31.76 per share at 13:35 GMT in New York, trimming its year-on-year decline to 16.32%. The company is valued at $50.47 billion based on Fridays close. According to the Financial Times, the 16 analysts offering 12-month price targets for GM have a median target of $43.00, with a high estimate of $51.00 and a low estimate of $28.00. The median estimate represents a 36.94% increase from the previous close of $31.40.