1. Chassis Electronic Module Recall ETM627 Brice Yager - Chassis Electronic Module November 30, 2014 1 What: Certain model year 2013-2014 General Motors (GM) vehicles equipped with Chassis Electronic Module (CEM) part number 573 Recall Date: October 01, 2014 [1] Why: Some of the vehicles were built with a contamination within the chassis electronic module which can cause an electrical short among the pins and/or internal components. If the module experiences an electrical short, the vehicle may display a check engine light, stall, or fail to start. If the vehicle is equipped with a trailer brake, the vehicle could lose its trailer brake function and display a “Service Trailer Brake System” indicator message. If the vehicle experiences this condition and stalls while in motion, there could be an increased risk of the vehicle to crash. [1] Incidents: GM has received no reports of crashes, injuries, or fatalities related to the issue; however, GM estimates only one percent of the vehicles affected will incorporate the defect. [2] Number of Units Affected: 97,540 vehicles in the U.S. and another 10,111 in Canada, Mexico, and other markets [3] When Sold: June 11, 2013 – February 4, 2014

2. Background Information ETM627 Brice Yager - Chassis Electronic Module November 30, 2014 2 Characteristics: A chassis electronic module is usually a “black box” electrical component, small in size, and located in the engine compartment or under carriage of the vehicle. The CEM usually has one input and one output which are connected in series to the overall computer wiring of the vehicle. The hardware is comprised of a printed circuit board with many micro electrical components connected to it that is driven by proprietary software. The module works synchronously with the other computer systems of the vehicle. Purpose: The CEM helps keep an eye on ­road conditions and vehicle performance, as well as make small adjustments to ensure better vehicle stability. The onboard computer determines what the driver intends, senses what the vehicle is actually doing, and makes minor adjustments to form the safest, most realistic version of the driver's requests. [4] Related Components: In vehicles with all-wheel drive, the CEM distributes drive torque evenly between the two axles and between the two rear wheels helping to fine-tune the vehicle stability controls. The CEM also works with vehicle’s electronic stability control to measure traction and vehicle yaw which allows the anti-lock braking system to not only protect against wheel lockup, but also to help steer the vehicle through braking when there is a loss in stability. The CEM also works with vehicles equipped with an electronic limited slip differential to stabilize the vehicle on curves and turns as well as help with slippery road conditions. The CEM also involves the positioning of the vehicle chassis itself working with self-leveling dampers to lower the vehicle closer to the road in order to minimize body movement, ensure tighter handling, and maintain constant ride height. [4]

3. Management Issues ETM627 Brice Yager - Chassis Electronic Module November 30, 2014 3 Recognition of Problem: Around June 27, 2013, certain vehicles in the affected population began displaying a check engine light during post-production testing at GM assembly facilities. The CEM supplier investigated the cause of these testing failures and determined that contaminants in the CEM caused the check engine lights to illuminate during testing and that this contamination was caused during the CEM manufacturing process. The supplier was also able to determine that the contamination began on June 15, 2013. [1] Speed of Response: The response speed was fairly quick as just over a month after the recognition of the problem the CEM supplier had changed its manufacturing process and tooling to substantially eliminate the risk of CEM contamination. GM assembly facilities reported no further testing failures attributable to the CEM contamination after September 4, 2013. [1] Responsibility: GM took full responsibility for the issue and determined that the cause was attributed to the manufacturing process. GM has notified customers of affected vehicles through a recall notice stating that dealers will replace the CEM on all affected vehicles and the service will be performed at no charge. [1]

4. Impact of Recall ETM627 Brice Yager - Chassis Electronic Module November 30, 2014 4 Legal Consequences: No lawsuits could be found against GM for the recent CEM recall however this announcement was made just after being faced with a $10 billion lawsuit over recently related recalls. Part of the lawsuit GM faces is due to failure to disclose several defects covering around 27 million cars sold in the United States. [5] Reputation: This recall is one of GM’s 69 total recalls so far this year, covering more than 29 million vehicles globally. Of the 29 million vehicles affected, some vehicles are being counted more than once because they’re being called back for multiple defects. [2] The recall comes just three months after GM CEO Mary Barra said GM was largely finished with a series of recalls due to the ignition switch defect crisis that is now tied to at least 23 deaths. [3] Sales: The sale of GM vehicles has not been affected by the CEM recall; however, due to all the other recent recalls GM has faced, the company's second-quarter earnings were reduced by $1.2 billion in recall-related costs.[3]

5. References ETM627 Brice Yager - Chassis Electronic Module November 30, 2014 5 [1] National Highway Traffic Safety Administration. (2014). RECALL Subject: Contamination of the Chassis Electronic Module. Retrieved from http://www- odi.nhtsa.dot.gov/owners/SearchResults?searchType=ID&targetCategory=R&searchCriteri a.nhtsa_ids=14V614000.html. 11 November 2014. [2] Colias, M. (2014). GM to recall 117,651 vehicles for chassis-control flaw. Automotive News. Retrieved from http://www.autonews.com/article/20141002/RETAIL05/141009924/gm- to-recall-117651-vehicles-for-chassis-control-flaw.html. 11 November 2014. [3] Bomey, N. (2014). GM recalling 118,000 vehicles for possible stalling. Detroit Free Press. Retrieved from http://www.freep.com/story/money/cars/general- motors/2014/10/02/gm-recalling-vehicles/16603551/.html. 11 November 2014. [4] Lamb, R. (2008). What is positive force chassis control? Retrieved from http://auto.howstuffworks.com/car-driving-safety/safety-regulatory-devices/positive- force-chassis-control.html. 28 November 2014. [5] Ochieng, V. (2014). General Motors Company (GM) Faces $10 Billion Lawsuit over Recalls Related To 27 Million Cars Sold Within U.S. Stockwise Daily. Retrieved from http://www.stockwisedaily.com/general-motors-company-gm-faces-10-billion-lawsuit- over-recalls/237132/.html. 11 November 2014.