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7 Million GM Recalls Seen Eroding Profit Under CEO Barra

This was supposed to be the year when General Motors Co. made a record $10 billion in profit.

Now, new Chief Executive Officer Mary Barra will be hard pressed to avoid posting a loss when GM announces its first-quarter earnings tomorrow. The cost of recalling 2.59 million vehicles linked to the deaths of at least 13 people -- combined with continued losses in Europe and new challenges in Russia, Australia, Asia and South America -- have prompted analysts to downgrade their earnings estimates.