GM Leads U.S. Automakers in Disclosing Recall, Warranty Costs

General Motors Co., which recalled a record number of vehicles last year after an ignition issue led to fatalities, is the most transparent U.S. automaker in flagging expected costs for future problems, Stout Risius Ross Inc. said.

GM leads in disclosing financial reporting on recall costs and accruals, followed by Ford Motor Co., Neil Steinkamp, a managing director at financial advisory firm Stout Risius Ross, said in an interview Tuesday. Detroit-based GM now accrues estimated recall costs for vehicles at the time of sale and in July allocated $874 million as “catch-up accrual” for vehicles sold, before noting the change for vehicles on the road.