GM Estimates Closing In On Half A Billion Dollars To Settle Recall Lawsuits

General Motors Co. on Thursday reported net income of $190 million or 11 cents a share, a figure that was significantly reduced by $1.2 billion in recall-related charges and a $400 million special charge it estimates will be needed to pay for a victims compensation program.

The company’s net income fell about 85 percent from earnings a year ago, but squared with analysts’ estimates. Net income was reduced by about $1.5 billion with special items that included the compensation plan costs, recall charges and a $874 million pre-tax charge to reserve for future recall costs in North America going forward. The company also took an approximately $200 million restructuring charge mostly for Europe.

JDMUSMuscle - 7/24/2014 3:54:41 PM

-1 Boost

General Motors, Ford and Chrysler all should pay the price like this, so that they may realize how foolish they have been.

You know Domino's Pizza? They admitted the fact that their pizza sucked, so they started making their pizza great again just by listening to the customers. Now, that's really a great marketing, and I respect the Domino's for even doing that.

But you don't see that kind of honesty and humbleness in the auto industry of the U.S.

GM, Ford and Chrysler should be judged, all for the sake of those companies' future. I really hope that the next time I buy my Cadillac, it does not have an ignition problem like the one I used to have in the past.

Do better, America.

MattDarringer - 7/24/2014 4:52:36 PM

+1 Boost

1/2 billion dollars is spare change for a company the size of GM.

Agent009 - 7/25/2014 9:44:45 AM

+1 Boost

The last two quarters would probably have been a loss for the automaker if they were paying federal taxes.