GM 1Q profit dragged down by recalls

[Omaha Steve]

Source: AP-EXCITE

By TOM KRISHER and DEE-ANN DURBIN

DETROIT (AP) - General Motors on Thursday reported its worst financial results in more than four years as the costs of a series of recalls dragged down earnings.

First-quarter profit fell 86 percent to $125 million as the Detroit automaker took a $1.3 billion charge for recalling about 7 million vehicles worldwide. GM also incurred $300 million in restructuring costs, mostly in Europe. And it took another $419 million charge due to a change in the way it values Venezuela's currency.

GM made 6 cents per share, down from 58 cents per share a year ago. The recall charge alone cut 48 cents off the company's first-quarter earnings.

But excluding one-time items, GM made 29 cents per share, far above Wall Street estimates of 3 cents per share. Shares rose 3.7 percent to $35.66 in premarket trading.

FULL story at link.


Read more: http://apnews.excite.com/article/20140424/DADCGHTO2.html

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This April 1, 2014 file photo shows the ignition switch of a 2005 Chevrolet Cobalt in Alexandria, Va. General Motors reports quarterly earnings on Thursday, April 24, 2014. (AP Photo/Molly Riley)

[bigdarryl]

1. Buy a Honda or Toyota problem solved

[Omaha Steve]

2. Toyota has issued a total of 5 recalls for nearly 6.4 million vehicles worldwide

I'll keep my recalled 09 Cobalt.

Toyota has recalled more cars in the US than any other auto manufacturer

http://charlottesville.legalexaminer.com/defective-dangerous-products/another-major-car-manufacturer-recall-toyota-makes-headlines-behind-gm/

April 22, 2014 7:56 AM

Just weeks after paying the largest criminal penalty ever assessed against an automaker, Toyota has issued a total of 5 recalls for nearly 6.4 million vehicles worldwide. The recalls include a faulty cable—the spiral cable may become damaged when the steering wheel turns, causing a warning lamp to illuminate and the car’s air bag to deactivate. The cable and air bag problem affects 1.3 million vehicles in the United States. They include the 2009-2010 Corolla, 2009-2010 Matrix, 2008-2010 Highlander, 2009-2010 Tacoma, 2006-2008 RAV4 and 2006-2010 Yaris models.

According to the National Highway Traffic Safety Administration (NHTSA), Toyota has recalled more cars in the US than any other auto manufacturer, with more than five million vehicles in each of the last two years. Four months into 2014 Toyota has already recalled almost 2.9 million vehicles in the US, outpacing last year’s (2013) recalls.

With the GM investigation front and center and now the Toyota recalls, this writer is looking at the increasing number of vehicles showing up in auto dealerships with faulty or defective parts. Question: why aren’t these problems being discovered and corrected in the design, manufacturing, and testing phases? Are new models being rushed to market?

We are seeing a sharp increase in recalls right now but as Clarence Ditlow, executive director of the nonprofit Center for Auto Safety notes, this may be a reaction to government scrutiny. Ditlow believes the strong response by NHTSA to the recent GM and Toyota difficulties has shaken up the industry and that’s why automakers are being more cautious. The involvement of the Justice Department is getting everyone’s attention. “That can be a real game-changer,” Ditlow said. “There’s nothing that changes corporate behavior as much as criminal prosecutions.”

FULL story at link.

[bigdarryl]

5. I drive a 2014 Prius no problem what so ever

And know someone who has a 2006 Prius with 274,000 miles and no problems.I'll take my chances with Toyota any day over US Auto Makers

[Omaha Steve]

6. The Prius isn't built HERE

They don't trust their non-union labor. The Prius plant in Japan is unionized BTW!

[sharp_stick]

4. Yeah they have no problems

never a recall issue with Toyota like sticky gas pedals or anything:
http://en.wikipedia.org/wiki/2009%E2%80%9311_Toyota_vehicle_recalls

Honda, nope nothing to see here either:
barely a month old
http://abcnews.go.com/Business/honda-recalls-900000-odyssey-minivans/story?id=22931850

[Sunlei]

3. GM will recover from this and then their competition will find another 'recall' issue, to promote.

Though they should have fixed that issue much earlier.

Go back to the old ignition switches GM, they were simple but built well.