The National Highway Traffic Safety Administration is expanding a probe into nearly one million GM pickup trucks and SUVs over a faulty engine tied to a 2025 recall, according to Reuters.
The details: NHTSA is opening an engineering analysis into the issue, escalating an investigation launched earlier this year to determine whether GM's fix for the faulty engines was effective.
Models under investigation include the Cadillac Escalade, Chevrolet Silverado 1500, Suburban and Tahoe, and GMC Yukon and Sierra 1500 equipped with L87 engines from the 2021 to 2026 model years.
The initial 2025 recall covered nearly 600,000 vehicles from the 2021 to 2024 model years, citing supplier quality issues, with reports of some engines failing while vehicles were in motion.
Since the 2025 recall, GM has received roughly 7,000 complaints of engine failures in pickups and SUVs that were repaired, while the auto safety regulator said it has received 499 complaints.
Why it matters: An expanded recall or additional repairs could put more GM trucks and SUVs into dealership service departments, increasing warranty work and customer communication needs while potentially affecting confidence in some of the automaker's highest-volume and most profitable models.
OUTSMART THE CAR MARKET IN 5 MINUTES A WEEK
Get insights trusted by 55,000+ car dealers. Free, fast, and built for automotive leaders.
Between the lines: It could take time to assess the full impact of GM's faulty L87 engines, with the engineering analysis representing a required step before NHTSA could push the automaker to expand the recall or make additional repairs.
NHTSA said it has received another 191 reports of engine failures in GM vehicles equipped with the engine that were not included in the 2025 recall, per Reuters.
GM's investigation into the issue last year identified just over 28,000 complaints, with about half alleging vehicles lost propulsion.
Last year, GM identified 12 crashes and 12 injuries in the U.S. that could be tied to the engine issue, as well as 42 reports of potentially related fires, with the company saying all alleged injuries were minor.
Bottom line: NHTSA's escalating investigation raises the possibility that GM's original recall remedy may not have fully resolved the engine problem, making the scope of any additional repairs a key issue for dealers managing affected customers, service capacity, and confidence in some of GM's most important truck and SUV nameplates.
A quick word from our partner
If dealership accounting and finance are part of your responsibilities, this is an event you don't want to miss.
The AICPA® Dealership Conference brings together industry leaders, technical experts, and peers to discuss the issues shaping the future of dealerships.
Held October 18 and 19 in Nashville, Tennessee, and live online, this event delivers valuable insights, practical strategies, and the latest updates you can apply immediately.
Lock in your spot at aicpa-cima.com/auto by September 4 to save $150 with the early bird discount!
