Reuters reports General Motors announced in its regulatory filing Thursday that it was under the microscope of five different government agencies related to its numerous recalls as of late. Aside from investigations by the U.S. Attorney's Office for the Southern District of New York, the National Highway Traffic Safety Administration, and both houses of Congress, the automaker revealed the Securities and Exchange Commission and an unnamed state attorney general's office were conducting their own probes. The filing also acknowledged GM was under the gun of 55 pending class action lawsuits in the U.S., and five of the same in Canada. GM said they were working with all of the investigations, though the automaker did not say what the SEC was looking for in its probe.
Speaking of Congress, The Detroit News reports the chairman of the U.S. House Energy and Commerce Committee, Rep. Fred Upton of Michigan, is readying the committee for a second round of hearings regarding GM's handling of the February 2014 recall of 2.6 million 2003 – 2007 vehicles affected by the ignition switch issue which took over a decade to resolve. Though the committee is still poring over 300,000 documents related to the recall in preparation, Upton wasn't sure if CEO Mary Barra would return to answer more questions, nor did he think it was good for public relations for the automaker to attempt to reinforce its liability shield before bankruptcy court. No date or topic for the hearing has been set thus far.
As for how hard the recalls hit GM's bottom line, Automotive News says the automaker barely made a net profit for Q1 2014. With the aid of surging transaction prices on trucks offsetting losses linked to the various recalls, currency challenges in Venezuela, and ongoing issues in Europe, GM made $125 million during the first three months of the year. Barra told those on the call that while there have been setbacks as of late, the automaker's overall progress was "sure and steady."
Meanwhile, Reuters reports supplier Delphi reported a stronger Q1 2014 than had been expected, pulling a net profit of $320 million on the high demand of parts in Asia and North America. The supplier, responsible for the out-of-spec switch at the heart of the main recall, is working with GM to supply replacement switches for the affected vehicles.
Finally, The Detroit News reports Barra is one of Time magazine's annual list of the 100 most influential people for 2014. The CEO cited her parents as major influences in her life, stating they taught her and her brother both "the value of a hard day's work" and "the power of integrity," adding they "continue to guide [her]" on a daily basis. In addition, former Chrysler CEO Lee Iacocca penned the following about Barra for her profile in the magazine:
Only time (and the pundits) will judge Barra and the kind of job she'll do for GM, its board of directors, its employees, the dealers and, most important, the people who buy its cars. If she remains as forthcoming as I've seen her on television with Congress, she will enjoy a long tenure at the helm.
from The Truth About Cars http://ift.tt/Jh8LjA
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