There are signs that GM CEO Mary Barra may not have to answer more questions about the company's latest recall as GM may finally be done recalling vehicles.
It has so far recalled nearly 26 million vehicles in the U.S. alone, and almost 29 million worldwide – more than any other maker in a single year. But after announcing 54 separate service actions since just the beginning of the year, GM is signaling that its recall blitz finally might be over.
Even then, the maker’s recall headaches are far from over. GM last month announced details of a new victims’ compensation fund to cover the deaths and injuries linked to a faulty ignition switch, a plan that could top $1 billion, according to some analysts. The maker also faces an assortment of legal problems, including a class action lawsuit filed in Seattle that could seek as much as $10 billion in damages. There are separate investigations underway in both houses of Congress, as well as a probe by the Justice Department. And GM has already said it expects to spend about $2.4 billion to handle all those recall during just the first half of 2014.
But the worst, in terms of new recalls could be over, wrote JP Morgan auto analyst Ryan Brinkman, in a report last week, noting that, “GM concluded its enhanced product safety review that has led to a significantly elevated pace of vehicle recalls.” (more…)