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GM forecasts $1.3B charge in Q1 to cover expanded recall costs

  • General Motors (GM +0.8%) tells the NHTSA it will add ignition lock cylinders to its safety recall of 2.2M vehicles in the U.S.
  • The automakers says it expects to take a charge of $1.3B in Q1 to cover recall costs and courtesy transportation expenses. The amount is inclusive of the $750M in charges that was announced last week,.
  • Even after the $1.3B is lopped off, GM expects to report "solid" core operating performance in Q1.
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Comments (5)
  • Capt Jack Daniels
    , contributor
    Comments (1460) | Send Message
     
    Wow also Gm put 2 engineers on administrative leave.

     

    1.3 Billion dollars...
    10 Apr 2014, 05:41 PM Reply Like
  • Lakeaffect
    , contributor
    Comments (1198) | Send Message
     
    Every car that goes out the door has a reserve for warranty and recall allocated to it. This $1.3 billion would be over and above that reserve figure which had already been accrued when each vehicle was shipped.
    10 Apr 2014, 06:03 PM Reply Like
  • funfun
    , contributor
    Comments (3381) | Send Message
     
    A Management culture of ENRON ETHICS hurts the bottom-line, does not enhance it. General Motors is the WorldCom of motorcar companies. …funfun..
    10 Apr 2014, 07:15 PM Reply Like
  • Budavar
    , contributor
    Comments (1393) | Send Message
     
    Not so much fun fun
    when we observe GM stock tech chart = courtesy Yahoo Finance.
    See for yourself!

     

    It has smashed through both the 100 day + 200 day moving average price line.
    Technically at least, GM stock is poised for a free fall.

     

    How much pain are GM's remaining large institutional investors willing to bear?
    10 Apr 2014, 08:47 PM Reply Like
  • sethmcs
    , contributor
    Comments (3458) | Send Message
     
    This whole issue was totally overblown. If this was a "real" threat to safety then there would have been much more wide spread incidents. The solution is to get rid of NTHSA and the media witch hunts.

     

    Funny how the government forbid anyone to sue GM while they retained ownership. Once they sold there stock they start a witch hunt and extort ransom for past sins. Big banks goes in this category as well.

     

    Call me cynical if you will but I have lost a lot of faith in government during these which hunts. I refuse to owe and equity that the government is involved with because once things get better the government comes for payback destroying shareholder value.

     

    The other side of this is the economy must be better or the government would not be in the position to extort paybacks.
    11 Apr 2014, 12:53 AM Reply Like
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