Tags: gm | chevy cruze | stop | selling | dealers

Chevy Cruze: GM Tells Dealers to Stop Selling Some Models; No Recall

Friday, 28 Mar 2014 06:51 PM

By Morgan Chilson

General Motors has stopped dealers from selling its popular Chevy Cruze cars that have a 1.4-liter turbo engine, without specifying the reason for the decision.

A spokesperson told CNN Money that a recall hasn’t been issued for the Cruze vehicles that were already sold.

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The stop selling order affected about 20,000 of the vehicles on dealer lots.

Although this decision is small potatoes compared to GM’s 1.6 million-car recall for ignition switch flaws, CNN said it “comes at a bad time” as the company is under fire for failing to move faster to fix the ignition switch issues. That problem has been linked to 12 deaths.

The move to stop sales, though, could reflect well on the company, if only to show that it is taking issues seriously and moving quickly.

“GM has to do more than appear to be making changes. They need to have verifiable shifts in how they handle safety issues,” Karl Brauer, senior analyst for Kelley Blue Book, told CNN. “What's the big problem with the ignition switch — that they didn't act quickly enough. Now they're responding at the first signs of any problem.”

The fact that GM isn’t issuing any information about the stop sales order to dealerships had many online speculating.

CNN said GM recalled the Cruze in the past because of a brake assist problem.

The Associated Press talked to dealers, who said stop sale orders are not uncommon and are “almost always made to fix a safety problem.”

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