GM’s Record Recall Expands: Is the Brand at Risk?

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July 1 (Bloomberg) -- Bloomberg’s Jamie Butters examines the impact of General Motors adding an additional 8.5 million vehicles to its growing recall list, how it may affect the brand on a long-term basis and previews monthly auto sales results expected later today from the major automakers. He speaks on “Bloomberg Surveillance.”


We go to jamie butters.

This has become a festering thing -- the more you look, the more you find.

If you look at gm's intraday stock chart yesterday, it was up in the morning as feinberg demonstrated gm's commitment to trying to do the right thing, to include as many people as should be included in the compensation program.

Then they halted trading and came out and said six more recalls, 8 million more vehicles, 7.5 million just in the u.s. including admissions.

-- including ignitions.

Less than one standard deviation is sort of a typical day at the office for gm.

Both were pretty well expected.


feinberg's pattern is pretty well laid out.

And then mary barra had said they are wrapping up a bunch of investigations, trying to get them done by the end of the second quarter, which was yesterday, so they wanted to get those out and they did.

If this keeps coming at 5 million a month, that is going to be a real problem.

If this is wrapping up around, maybe they are putting it around the.

When will this affect monthly sales?

It has not so far.

We will see in june -- we will see june results today.

Gm is down but it is in line with their pricing.

They have been disciplined on pricing, and it was taken as a sign of their strength and how well they are handling this.

When does this begin to affect the brand.

Bill blessing has an article in the new york times this morning.

When does it affect that named marquis back to sloan in the 20's. when does it affect gm?

It seems that there are more fatalities that are caused by this kind of negligence, neglect on the part of the whole company . that is the stuff that really tarnishes them.

We have seen the recalls in the last couple of years.

Ford and toyota have ramped up their recall machine to grab everything out there, and it is not hurting them, it is helping them in the market.

By volume of numbers, probably not that bad, but if there are fatalities, and now that they are trying to sell, it hurts.

If you are a chevy person come you think of chevy but they do not necessarily associate with this company, gm, in detroit.

The other key question, do you drive a ford truck or a gm truck?

Mark fields has taken over at ford for alan mulally.

As i look at the bloomberg terminal, earnings are forecast to decline by 18%. what does mark fields need to do with ford starting today?

The reason earnings are down is because they are spending so much on new vehicles, especially the f 150 with the aluminum body.

That is the dreamliner for alan

This text has been automatically generated. It may not be 100% accurate.


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