GM Special Coverage for Transmission Valve Defect in Escalades, Silverado's and Sierras: What Owners Need to Know

What’s the Problem?

General Motors has issued Special Coverage N242454441 for a transmission defect that may result in momentary rear wheel lock-up and poor drivability in select Chevrolet, GMC, and Cadillac vehicles. The problem stems from a worn transmission control valve, which causes a gradual loss of hydraulic pressure. When this happens, drivers may experience:

  • Harsh shifting

  • Reduced engine performance

  • Check engine light

  • Diagnostic Trouble Code P0747

  • In extreme cases: momentary rear wheel lock-up

These symptoms can pose a serious safety risk, especially if they occur while merging or driving at highway speeds.

Affected Vehicles

The coverage applies to the following models equipped with 6-speed automatic transmissions:

  • 2021 -2022 Cadillac Escalade and Escalade ESV

  • 2020 - 2022 Chevrolet Silverado 1500, 2500HD, 3500HD

  • 2021 - 2022 Chevrolet Tahoe

  • 2021 - 2022 Chevrolet Suburban

  • 2020 - 2022 GMC Sierra 1500, 2500HD, 3500HD

  • 2021 - 2022 GMC Yukon, Yukon XL

Dealers are instructed to inspect for DTC P0747 and, if present, replace the valve body assembly at no cost to the customer.

Extended Warranty Details

General Motors is offering extended warranty coverage for this issue for 15 years or 150,000 miles, whichever comes first, from the vehicle’s original in-service date.

What’s Covered:

  • Full replacement of the control valve body

  • Transmission fluid, seals, and filter kits

  • Courtesy transportation during the repair (U.S. and Canada only)

What’s Not Covered:

  • Repairs unrelated to the P0747 condition

  • Work performed prior to November 26, 2024, if submitted under a third-party service contract

Reimbursement for Past Repairs

If you previously paid for repairs related to harsh shifting, DTC P0747, or transmission performance tied to this defect, you may be entitled to reimbursement—but only if the repair occurred within the 15-year/150,000-mile window.

Key points:

  • Deadline to submit reimbursement claims: December 31, 2025

  • Must present original repair documents and the reimbursement form (included in GM’s customer letter)

  • GM prohibits assignment of reimbursement rights to third-party administrators or warranty companies

Lemon Law Implications

Even with a warranty extension, repeated repair attempts or prolonged downtime may entitle you to legal relief under California’s Lemon Law. You may qualify if:

  • Your vehicle continues to experience shifting problems or rear-wheel lockup

  • You’ve had the vehicle in for transmission repairs multiple times

  • The vehicle has been out of service for 30+ days cumulatively

  • GM’s repair fails to fully resolve the issue

How to Proceed

Document Issues: Keep detailed records of all repairs and communications with the manufacturer. While at the dealership, ensure that all of your complaints are noted in the work order that you receive when you first drop off your vehicle.

Reasonable Number of Repair Attempts: While the law doesn't specify an exact number, generally, if the same problem persists after four or more repair attempts, or if the vehicle is out of service for more than 30 days cumulatively, it may qualify as a "lemon."

Monitor Symptoms: Any hard shifting, loss of power, warning lights, or unusual drivetrain behavior? Stop driving and get the vehicle checked immediately.

Talk to a Lemon Law Attorney, like Valero Law: If the problem recurs—or if you’re concerned about safety, reliability, or resale value—contact Valero Law to understand your legal options.

Protect Your Rights Under California Lemon Law

If your GM truck or SUV continues to suffer from shifting problems or transmission defects—even after the valve body repair—you may be entitled to:

  • A full repurchase of your defective vehicle

  • A replacement vehicle

  • Or cash reimbursement for out-of-pocket losses

📞 Call Valero Law, APC at (424) 299‑4447 or fill out our free Lemon Law case evaluation form today. We take cases on a contingency basis—there is no cost to you.