Tag Archives: Recall costs

GM’s quarterly profit plunges on recall costs, higher Europe loss

General Motors posted an 85 percent drop in second-quarter net income, hurt by recall-related expenses in the United States and restructuring costs in Europe.

Costs related to GM’s unprecedented spate of safety recalls, along with special items, sliced GM’s net income for the April-June period by about $1.5 billion net of taxes, down to $190 million, from $1.26 billion in the year-earlier period.

Recall costs slam GM profits

The General Motors headquarters in the Renaissance Center is pictured on January 14, 2014 in Detroit, Michigan

General Motors Thursday reported slumping first-quarter profits, dragged down by hefty recall charges that eclipsed a strong core operating performance.