GM Recalls Outnumber Six Years of Sales
(NEW YORK) -- The numbers are staggering.
In the first six months of this year, General Motors announced the recall of more than 29 million cars, including a new recall on Monday of 8.2 million more vehicles. That’s the largest number of recalls ever in one year by a single auto manufacturer. It's also more cars recalled than what has been sold by the company in the last six years.
Still, customers appear to remain loyal to GM despite surpassing the record for single-year safety fixes. GM’s new car sales have not been hit hard by the dent to its reputation as the automaker announced Tuesday that it sold 260,000 cars in June, an increase of one percent from a year ago and beyond the expectations on Wall Street.
Though plagued by millions of recalls, the company said the first half of this year was its best since 2008. The company's stock also remains largely unaffected.
The company says it will take an additional $500 million charge against earnings to pay for the newest recalls. So far, GM has said it will spend $2.5 billion to fix safety problems. But this does not include the newly announced compensation fund for victims of crashes linked to flawed vehicles.
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