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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.
Comments (1)
  • funfun
    , contributor
    Comments (2455) | 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, 08:11 AM Reply Like
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