GM blames Toyota for recall of 1.3 million GM vehicles for power steering failure
03 Mar 2010
General Motors has become the latest carmaker to admit to quality problems by issuing a recall yesterday for 1.3 million compact cars for repairs for a power-steering mechanism failure. However, the Deteroit auto maker has pointed a finger at larger rival Toyota for its problem.
GM vice-chairman Bob Lutz blamed Jtekt Corporation, a Japanese auto component maker, part-owned by Toyota Motor Corporation, for supplying a faulty part that led to GM's recall.
Toyota, already reeling under more than 8 million recalls, holds 22.5-per cent stake in the Osaka-based Jtekt Corporation, which was formed in 2006 through the merger of Koyo Seiko Coand Toyoda Machine Works.
Lutz said Jtekt had not conformed to all reliability and durability requirements, a risk taken when a car manufacturer has to some times take while buying a complete system from a supplier.
Lutz said that the cost of the recall may be around $100 million but did not reveal whether GM or Jtekt would bear the repair costs.
The vehicles affected by the problem are the 2005-2010 Chevrolet Cobalt; 2007-2010 Pontiac G5; 2005-2006 Pontiac Pursuit sold in Canada, and the 2005-2006 Pontiac G4 sold in Mexico.
