NHTSA Investigates 286,000 GM Vehicles for Engine Risks

DETROIT, October 27, 2025 – The National Highway Traffic Safety Administration opened a probe into 286,000 General Motors (GM.N) vehicles over potential engine failures from connecting rod bearing issues.

The investigation targets GM’s L87 6.2-liter engine installed in popular models including the Chevrolet Silverado and could lead to costly recalls affecting the automaker’s profitability.

NHTSA probes 286,000 GM vehicles for engine bearing failures
Investigation focuses on L87 6.2-liter engines in Silverados
Potential recall costs could impact GM’s quarterly earnings

Investigation Details

The NHTSA launched an engineering analysis into approximately 286,051 GM vehicles across the United States over engine failure resulting from connecting rod bearing failure ¹. The probe specifically examines the L87 6.2-liter engine installed in models such as the Chevrolet Silverado ².

This action represents an expansion of NHTSA’s ongoing investigation into potential safety defects that could affect hundreds of thousands of GM vehicles currently on American roads ³. The agency has not disclosed the specific model years affected or the timeline for completing its analysis.

Market Context

GM shares have faced pressure this year amid broader automotive industry challenges including supply chain disruptions and increased regulatory scrutiny. The company’s stock performance has lagged behind the S&P 500’s gains as investors weigh potential recall costs against strong truck sales.

The probe adds to regulatory headwinds facing Detroit automakers, with Ford Motor (F.N) and Stellantis (STLAM.MI) also managing various NHTSA investigations this year. Engine-related recalls typically cost manufacturers between 500 million to 2 billion depending on scope and required repairs.

Technical Issues

Connecting rod bearing failures can cause catastrophic engine damage, potentially leading to complete engine seizure while driving. Such failures pose significant safety risks as they can result in sudden loss of power and steering assistance.

The L87 engine is widely used across GM’s full-size truck lineup, making it a critical component for the company’s most profitable vehicle segment. Any mandatory recall could disrupt production schedules and require extensive dealer service capacity.

Regulatory Process

NHTSA’s engineering analysis represents the initial phase of a potential recall investigation. The agency will examine complaint data, conduct technical assessments, and determine whether a safety defect exists that warrants a recall.

If the investigation escalates, GM could face mandatory recalls, civil penalties, and enhanced oversight requirements. The company has not yet publicly commented on the probe or provided estimates for potential financial impact.

Outlook

The investigation’s outcome could significantly affect GM’s near-term earnings and long-term reputation in the competitive truck market. Investors will monitor developments closely as engine reliability issues could undermine consumer confidence in GM’s flagship products.

GM’s response strategy and cooperation with regulators will likely influence both the investigation’s duration and any eventual penalties. The company’s strong cash position provides flexibility to manage potential recall costs without compromising growth investments.

Not investment advice. For informational purposes only.