GM Sales Surprise: Can Anything Slow Them Down?

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July 1 (Bloomberg) -- Jalopnik's Travis Okulski, Graham Fisher's Joshua Rosner and Bloomberg's Jason Harper discuss GM surprising investors with a U.S. sales gain in June after analysts projected a decline. They speak with Trish Regan on "Street Smart." (Source: Bloomberg)

What you don't see that coming with 29 million recalls.

It's not what i expected either.

These are mostly older cars except for now, we are getting stuff like the cadillac cts which is not an older car and is one of gm's halo brands.

But the people of the old econo boxes are now brought in and they are looking at the of gm, which are mostly great products.

It's kind of like cash for clunkers.

They are bringing in the old ones.

They could just get them fixed.

It's like a cell phone contract.

Here's why i don't think it is intuitive as that.

You go in and you got a problem with your current vehicle.

Why don't you get a new one when gm is at fault for this?

These are problems you were never going to encounter.

These are problems they are anticipating could be a problem but probably never will be.

But 29 million recalls.

That's a lot of cars.

That's a debtor batting average than you would have in the major leagues.

The other side is you've got them in the show room for the recall and you've got cheap financing.

You are the first point of contact for a potential new car buyer.

These are not ford pinto's. this is not cars exploding.

These are fairly obscure problems.

If you haven't had a breakdown in your driveway, it probably doesn't feel like a tangible problem.

But you feel like you've got to get it into the dealership.

The problem is as new models get pulled in, you have a new problem.

They do stop the sale on something like the cruise.

How did analysts get it so wrong?

It's boggling my mind because i didn't see gm having an increase at all.

I think it goes to show the new product is good and recalls might not matter to consumers as much as we think we do.

Yesterday, gm unveiled its plan to compensate the dems.

While eligible claims will be paid within 90 to 100 days, it's unclear how may claims will be paid out will stop we spoke with ken feinberg, the attorney hired by gm to oversee payments to the victims.

He gave some insight into how it's going to happen.

I have no idea.

It would beep your speculation.

The number of deaths, peer speculation.

The number of physical injuries caused by the ignition switch, peer speculation.

Until people file a claim.

And we evaluate the claim.

Was it an ignition switch defect in a car where it could have been?

We cannot make that kind of speculation.

But some insight that a little bit of wait and see.

Hard to peg what the payouts are going to look like.

Any guesstimates from you?

Thusly is not the cars that cause accidents, it people.

This is one of the cars that had a defect and it's hard to peg it to that incident because we are all on the road.

It's people texting running into people?

Alcohol-related questions, they're going to minimize the amount of outside litigation it could come from this.

I heard at least a million dollars per death.

They are saying there's at least 13 deaths?

Are there many more?

I think it would be a little preemptive to not have this?

If you are looking at settling in 90 to 180 days,

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


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