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Heated Windshield Washer System Spurs GM Recall, Supplier Dispute

October 15, 2008

DETROIT --- A major General Motors recall last month seems to have spelled the demise of a Farmington Hills-based supplier of heated windshield washer fluid systems. Microheat Inc. has halted most production and is operating on a skeleton crew, Crain Communications reported.

Last month, GM recalled about 944,000 vehicles equipped with Microheat's HotShot system because of concerns about the risk of electrical fire. GM and NHTSA have said that the HotShot system has a faulty circuit board prone to short circuiting and overheating.

Recalled vehicles have a new wiring harness with an inline fuse installed at GM's expense. 

In court documents, GM said it wants the supplier to pay between $20 million and $25 million to cover recall costs. Microheat has sued GM, alleging the automaker withheld payments for products shipped over three months totaling more than $3.7 million. Microheat has filed for Chapter 11 bankruptcy protection.

 

 

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