GM: General Motors to Take $200M Charge to Cover Recall Repairs

It is recalling almost 3 million more vehicles

   

GM: General Motors to Take $200M Charge to Cover Recall Repairs

A series of new vehicle recalls will result in a hefty quarterly charge for General Motors (GM).

GM 300x300 GM: General Motors to Take $200M Charge to Cover Recall RepairsThe nation’s largest car maker said on Thursday that it will record a charge of up to $200 million during the third quarter to cover five new recalls. The latest GM recalls cover almost 3 million GM vehicles, Reuters motes.

cars GM: General Motors to Take $200M Charge to Cover Recall Repairs
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Earlier this year, GM recalled 2.6 million mostly older-model vehicles over defective ignition switches. General Motors took a $1.3 billion charge relating to that recall during the first quarter.

GM is facing government scrutiny over its late response to the ignition switch problem. The automaker has also been hit with a series of lawsuits resulting from accidents linked to the problem.

A General Motors official said the company is working to improve its handling of vehicle defects and recalls.

GM stock sank more than 1% in Thursday morning trading. General Motors stock closed at $ per share on Wednesday.

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Article printed from InvestorPlace Media, http://investorplace.com/2014/05/gm-general-motors-take-200m-charge-cover-recall-repairs/.

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