GM Orders Chevrolet Dealers to Stop Selling Recent Cruzes

General Motors Co. (GM) told Chevrolet dealers to stop selling 2013 and 2014 Cruze small cars because the air-bag modules may have an incorrect part, according to an e-mailed statement today.

The faulty air-bag modules were supplied by Takata Corp. (7312), which made safety components leading to millions of vehicle recalls by automakers including Toyota Motor Corp. (7203) and Honda Motor Co., said Jim Cain, a GM spokesman. Honda said its recall was for flaws related to inadequate pressure and excess moisture.

GM has redoubled its efforts to ensure its vehicles are safe following the slow recall of 2.59 million compact cars linked to at least 13 deaths. The company’s crisis erupted in February with the recall of some small cars it no longer sells, including the Chevrolet Cobalt, that have a defective ignition switch that could be jarred into the “accessory” position, disabling power steering and preventing air bags from deploying.

A spokesman for Tokyo-based Takata couldn’t immediately be reached after business hours in the U.S.

GM has notified Chevrolet dealers in the United States and Canada to stop delivery of new or used 2013-2014 Chevrolet Cruze vehicles until further notice,” the Detroit-based automaker said today in the statement. “Certain vehicles may be equipped with a suspect driver’s air-bag inflator module that may have been assembled with an incorrect part.”

Automotive News earlier reported the stop order.

‘Working Diligently’

“We are working diligently with the supplier of the defective part to identify specific vehicles affected and expect to resume deliveries by the end of this week once those vehicles are identified,” GM said in the statement, which didn’t name the supplier.

GM hasn’t said if it will recall the Cruzes or recommend that owners not drive them. U.S. sales of the car rose 4.4 percent last year to 248,224, according to researcher Autodata Corp.

“We are working through all of the issues associated with the part in real time, and we will move as quickly as possible as we stitch the facts together,” the company said.

Shares of GM fell 0.7 percent to $36.84 in trading after the close in New York. They had gained 1.4 percent before the close for an increase of during the regular trading day. GM gained 4.3 percent from Feb. 12, the day before the small-car recalls began.

To contact the reporter on this story: Tim Higgins in Detroit at thiggins21@bloomberg.net

To contact the editors responsible for this story: Jamie Butters at jbutters@bloomberg.net John Lear

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