GM turns a profit in Q1 despite massive recall costs


General Motors (GM) posted a significantly lower profit in Q1 due to the high costs of its ignition switch recall.

The automaker was able to stay in the black as solid pricing trend in North America helped to boost margins.

As previously reported, GM tallied recall expenses of $1.3B in Q1.

GM Europe reported an EBIT-adjusted loss of $300M, inclusive of $200M for restructuring costs.

GM +2.1% premarket despite a miss by the automaker on its top line.

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Comments (1)
  • funfundvierzig
    , contributor
    Comments (4909) | Send Message
     
    We are more than mildly curious: Is the rather modest accrual of $1.3 billion in Q1 for the multiple recalls of some 7 million defective GM cars sufficient to cover all the costs and expenses? Or will there be other surprise hits to earnings in ensuing quarters? Or additional recalls, as a secretive GM Management discloses other heretofore concealed deficient parts or designs? Stay tuned, folks…funfun..
    24 Apr 2014, 08:11 AM Reply Like
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