April 24 - General Motors managed to eke out a profit and boost revenue despite writing off $1.3 billion to cover the costs of its massive recall. Fred Katayama reports.
The costs of its massive recall heavily dented GM's earnings, but the automaker managed to eke out a profit and boost revenue in the latest quarter. Increased sales in Europe and Asia offset declines in the Americas. In the U.S., the company held the line on incentives despite the recall and wound up losing sales and market share. Its global share also slipped. GM said it wrote off $1.3 billion to cover the costs of repairing the more than 7 million recalled cars and loaning out vehicles. Replacement of faulty ignition switches accounted for more than half of that. GM's CFO said it was too early to predict if there would be more charges around the corner. GM shares, which are down nearly 16 percent this year, bounced back sharply in early trade.