General Motors Recalls 43,732 SUVs Amid Software Transmission Issue

U.S. legacy automaker General Motors GM has issued a recall for 43,732 full-size SUVs from the 2022 model year due to a defect in their 10-speed automatic transmission. The issue involves the transmission control valve, which may wear out prematurely and cause internal fluid leaks. This can lower the hydraulic pressure inside the transmission, causing rough gear shifts and, in rare cases, the rear wheels to suddenly lock up while driving, increasing the risk of a crash.

The recall covers 17,178 units of Chevrolet Tahoe, 7,616 units of Chevrolet Suburban models, 2,239 units of Cadillac Escalade ESV, 3,609 units of Cadillac Escalade SUVs, 7,820 units of GMC Yukon models and 5,270 units of GMC Yukon XL vehicles. GM began investigating the issue in November 2025 after receiving a report of a crash linked to a transmission lock-up. The affected vehicles do not have updated software that can detect excessive wear in the transmission control valve.

To address the issue, dealers will install updated transmission control module (TCM) software free of charge. The revised system is designed to monitor valve wear more closely and detect problems about 10,000 miles before a potential lock-up. If abnormal wear is found, the transmission will be limited to fifth gear, and warning alerts will be activated to help prevent rear-wheel lock-up, particularly during high-speed downshifts.

GM said vehicles showing critical wear may require additional mechanical repairs, including component replacements, all at no cost to owners.

According to recall documents, all of GM’s 2023 and newer full-size SUVs are already equipped with the updated transmission software. Owner notification letters are expected to be mailed by March 30, 2026. Drivers can verify inclusion by entering their VIN in the federal recall database.

The recall reflects GM’s effort to quickly address the issue through a free software update and necessary repairs to reduce accident risk. Owners of affected SUVs are encouraged to watch for official notifications and schedule service promptly.

General Motors Company Price, Consensus and EPS Surprise

General Motors Company price-consensus-eps-surprise-chart | General Motors Company Quote

GM’s Zacks Rank & Key Picks

GM currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the auto space are Ford Motor F, Modine Manufacturing MOD and Strattec Security STRT, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for F’s 2026 sales and earnings implies year-over-year growth of 0.6% and 39.5%, respectively. The EPS estimate for 2026 and 2027 has improved 10 cents and 22 cents, respectively, in the past 60 days.

The Zacks Consensus Estimate for MOD’s fiscal 2026 sales and earnings implies year-over-year growth of 21.3% and 19%, respectively. The EPS estimate for fiscal 2026 and 2027 has improved 1 cent and 4 cents, respectively, in the past seven days.

The Zacks Consensus Estimate for STRT’s fiscal 2026 sales and earnings implies year-over-year growth of 2.1% and 16.2%, respectively. The EPS estimate for fiscal 2026 and fiscal 2027 has improved $1.01 and 48 cents, respectively, in the past 30 days.

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