UPDATE 2-GM recalls 1.5 million vehicles on fire risk

* GM recall for large Chevy, Cadillac, GMC, Buick models

* Heater windshield washer option will be removed

* Consumers to get $100 payment for removal of feature

* Five fires since mid-2009, no injuries or crashes
(Adds 2008 recall to fix similar issue, estimates cost to GM)

DETROIT, June 8 (BestGrowthStock) – General Motors Co [GM.UL] on
Tuesday announced a recall of about 1.5 million trucks,
crossovers and cars from model years 2006-2009 because the unit
that heats the windshield washer fluid could catch fire.

Jeff Boyer, GM director for safety, said GM will remove the
unit that heats washer fluid, because the supplier who made the
module has stopped manufacturing, leaving no chance to design
an improved unit.

GM will pay each customer $100 when the heated fluid module
is removed at dealerships, Boyer said. The washer is a feature
to allow larger vehicles to better eliminate ice and snow on
windshields.

The models involved include the 2007-2009 model year
Chevrolet Silverado 3500 pickup truck, Avalanche, Suburban and
Tahoe; Cadillac Escalade, Escalade ESV and Escalade EXT; GMC
Acadia, Sierra, Yukon and Yukon XL; and the Saturn Outlook.

The recall also covers the 2009 Chevrolet Traverse, the
2008-2009 Buick Enclave and Cadillac CTS, and the 2006-2009
Buick Lucerne, Cadillac DTS and Hummer H2.

GM in 2009 dropped the Hummer and Saturn brands as part of
its post-bankruptcy restructuring.

A GM spokesman said the removal of the module will take a
mechanic about 20 minutes, at a cost GM did not estimate.

The payouts to consumers would total about $150 million if
all 1.5 million customers collect the $100 payment for loss of
the heated washer feature.

In addition to the 1.365 million vehicles recalled in the
United States, about 98,800 vehicles will be recalled in
Canada, about 26,250 in Mexico and 38,100 elsewhere, GM said.

The heated washer system was recalled in August 2008
because of a short circuit. Dealers installed a fuse in the
module wiring to fix the problem, GM said.

In June 2009, GM discovered a new failure in the system.
The failure caused smoke. Since then, it has received five
reports of the system causing a fire.

Stock Report
(Reporting by Bernie Woodall and Soyoung Kim. Editing by
Robert MacMillan)

UPDATE 2-GM recalls 1.5 million vehicles on fire risk