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Last Updated: Tuesday, 26 April, 2005, 00:50 GMT 01:50 UK
GM recalls two million vehicles
Hummer H2 SUV
The Hummer H2 is among the SUVs being recalled
General Motors has announced a recall of more than two million vehicles in the US - the latest setback faced by the world's largest car manufacturer.

The recall comes after GM posted a net loss of $1.1bn (576m) for the first three months of 2005.

GM said there had only been a few minor injuries associated with the recall.

The largest issue involves seat belt design problems in about 1.48 million Sports Utility Vehicles and pick-up trucks from the 2003-2005 model years.

These include the Chevrolet Silverado, Hummer H2 and Cadillac Escalade.

GM shares fell more than 2% on Monday.

Flagging sales

About 330,000 Chevrolet Suburban and Yukon XL SUVs from the 2000-2001 model range are also being recalled over the potential overheating of fuel pump wires.

The recall is the largest for GM since March last year when it replaced tailgate support cables in four million full-size pickup trucks.

Last week, the company cited flagging sales and the rising cost of employee healthcare when it reported its largest quarterly loss in more than a decade.

GM's Buick, Cadillac and Chevrolet cars have lost out to foreign brands.

And higher oil prices have lead some motor industry analysts to say the US's long infatuation with gas-guzzling SUVs may be running out of steam.



SEE ALSO:
GM loses $1.1bn as car sales slow
19 Apr 05 |  Business
Car giants race for China sales
19 Apr 05 |  Business
GM boss takes charge of division
04 Apr 05 |  Business
GM warns it may phase out brands
24 Mar 05 |  Business


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