In September, GM issued a recall on a total of 944,000 of its vehicles over concerns of electrical fires. According to the NHSTA, a short circuit in the wiper fluid system’s electric wiring could cause other electrical features to malfunction, overheating the circuit board and posing a significant fire hazard. The system, which was found mostly in GM’s luxury vehicles, was engineered by Microheat, Inc. To compensate for the equipment failure, GM is suing Microheat to the tune of $20-$25 million, the estimated cost of the the recall. In turn, last month Microheat filed suit against GM, claiming the automaker owes them $3.7 million in payment for products shipped in July, August, and September.
In the wake of the costly events, operations within Microheat were shut down and currently only a skeleton staff remains at headquarters in Detroit. While Microheat CEO Ron Guardhouse refrained from commenting on the situation, employee sources within the company confirmed that the skeleton staff is preparing for Microheat’s closure.
[News Source: Auto News]