General Motors: ESG + DEI = Disaster?

February 21, 2025
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Has General Motors’ commitment to DEI (Diversity, Equity, and Inclusion) and ESG (Environmental, Social, and Governance) initiatives taken their eye off the ball and put American drivers at risk?

A major government investigation is now underway, and the findings could be alarming.

General Motors Under Investigation

The National Highway Traffic Safety Administration (NHTSA) has launched an investigation into General Motors’ 6.2L V8 L87 engine, which powers nearly 900,000 vehicles across multiple GM brands, including the Chevy Silverado, Tahoe, Suburban, GMC Sierra, Yukon, Cadillac Escalade, and even some Ford Expeditions.

The early reports are troubling. Drivers, mechanics, and dealers are reporting total and partial engine failures in these L87-powered vehicles. The primary culprits? Faulty bearings and improperly installed wrist pins—defects that are causing catastrophic engine failures in vehicles that have shockingly low mileage.

Even worse, these failures are happening so frequently that replacement engines are in short supply, leaving countless SUVs and trucks inoperable. With months-long wait times for repairs, many GM owners are stranded without their vehicles, their daily lives thrown into chaos.

It Gets Worse: Another Major Engine Problem

While the L87 engine failure has taken center stage, a second widespread defect has been lurking in the shadows.

GM’s 5.3L V8 engine, used in even more vehicles than the 6.2L, has been experiencing performance issues on lifters at an alarming rate. While this issue has been widely known among mechanics and dealers, it has largely flown under the radar—until now.

With the NHTSA’s investigation into the 6.2L L87 engine, many are now questioning how GM allowed both engine issues to spiral out of control.

What Went Wrong at General Motors?

The question is: How did a company once known for engineering excellence end up with widespread vehicle failures?

The answer may lie in GM’s priorities.

A Woke Automaker? GM’s Obsession with DEI & ESG

While GM’s engineers and customers deal with catastrophic failures, the company has been busy racking up corporate activism awards.

In the 2025 Human Rights Campaign (HRC) Corporate Equality Index, GM received a perfect 100 score—one of only a select number of companies to achieve this ranking.

In its 2023 Sustainability Report, GM proudly showcased its achievements in DEI and ESG initiatives:

  • Fair360’s ‘Top 50 for Diversity’ for the eighth straight year (#33, up from #36 in 2022).
  • First Place in Just Capital’s ‘JUST 100’ rankings for the Automobiles & Parts sector.
  • Fast Company’s ‘Brands That Matter’ for leadership in social action, sustainability, and inclusivity.

General Motors has spent years crafting an image of being one of the most progressive and socially responsible automakers in the world.

But with two major engine failures, one might ask: Was GM too focused on social virtue signaling to ensure its vehicles actually worked?

Financial Engineering Over Quality Engineering

In June 2024, General Motors’ Board of Directors authorized a $6 billion stock buyback. While buybacks are common, they are often used as a financial sleight of hand—artificially boosting a company’s stock price without actually improving business operations or product quality.

Instead of investing in better manufacturing processes, stricter quality control, or addressing customer complaints, GM pumped billions into reducing outstanding shares, making its financials appear stronger on paper.

The result? Wall Street cheers, executive bonuses skyrocket, but GM vehicles continue breaking down.

Where Are GM’s Priorities?

According to GM’s Sustainability Report, the company is making key commitments to “promote its brand & reputation” rather than focusing on engineering reliability.

It raises a serious question:  Has General Motors become more concerned with winning ESG and DEI accolades than producing reliable, safe vehicles?

The real victims here aren’t shareholders, executives, or ESG rating agencies.

It’s the American drivers who rely on GM vehicles for their families, their jobs, and their daily lives—only to be left stranded by catastrophic engine failures in low-mileage vehicles.

With the NHTSA now investigating, General Motors may soon be forced to confront the real-world consequences of its priorities.

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