General Motors Company has filed with the U.S. Securities and Exchange Commission – the SEC – a notice confirming that GM will take a ~$750 million charge against Q1 earnings because of its safety recalls this year.
The three-quarters of a billion dollar expense to stockholders includes yesterday’s safety recall of electric power steering assist affecting approximately 1.3 million vehicles and other safety recalls announced in the three months ending 31 March 2014.
This amount – and it could grow in subsequent quarters – includes $300 million previously disclosed in connection with the three safety actions announced on 17 March 2014 and the ignition switch recall announced 25 February 2014. Given the growing number of lawsuits lawsuits and a new scrutiny of safety issues at GM, both inside and out, more charges are likely.
Read AutoInformed on:
- GM Recalls 1.3 Million Cars for Bad Electric Power Steering
- GM Expands Ignition Switch Recall Yet Again
