As U.S. equity markets dropped sharply on Tuesday, General Motors Company (GM
) announced yet another massive recall.
The automobile maker announced it is recalling an additional 2.6 million vehicles worldwide. With this latest recall, GM’s total recalls this year have reached nearly 15.4 million vehicles. General Motors expects the company’s second quarter to take a $400 million hit, mostly for recall-related repairs. In Q1, GM reported a charge of $1.3 billion, mostly related to a previous recall.
The recall announced today includes vehicles with possible faulty seat belts, transmission, air bags and fire issues. The recall affects the Buick Enclave, Chevrolet Traverse, GMC Acadia, Saturn Outlook, Chevy Malibu, Pontiac G6, Cadillac Escalade, Chevy Silverado, and GMC Sierra.
GM shares fell 3.45% during Thursday’s session. Year-to-date, the stock is down 16.36%.
No comments:
Post a Comment