Although the American company announced $0.2 billion second quarter net income attributable to common stockholders, the actual net profit is $190 million, translating to an 85 percent drop compared to the $1.26 billion General Motors posted in Q2 2013.
With the 6 recall campaigns announced yesterday, General Motors' 2014 recall tally currently totals 28,767,143 vehicles. So it's no wonder that 1.2 million green dollar bills were redirected toward fixing those damn cars affected by a wide range of defects, including the faulty ignition switches.
Besides the costly fixes, the automaker has also took 2 pretax charges linked to the 60 safety recalls announced to date. Namely, $400 million have been allocated to the compensation fund created for victims of ignition switch related accidents, while $874 million were allocated for recall expenses of the next 10 years. Don't know about you, but $874 million are definitely not enough for the decade.
"Our underlying business performance in the first half of the year was strong as we grew our revenue on improved pricing and solid new vehicle launches," said GM CEO Mary Barra. "We remain focused on keeping our customers at the center of all we do, and executing our plan to operate profitably in every region of the world."
General Motors reports that a $39.6 billion net revenue has been recorded in the second quarter, which is $500 million better than the same period last year. As for the first half of 2014, GM revenue hiked to $77 billion, a $1 billion improvement compared to the first six months last year. If you want to go into further details, please check out the press release attached below.
Besides the costly fixes, the automaker has also took 2 pretax charges linked to the 60 safety recalls announced to date. Namely, $400 million have been allocated to the compensation fund created for victims of ignition switch related accidents, while $874 million were allocated for recall expenses of the next 10 years. Don't know about you, but $874 million are definitely not enough for the decade.
"Our underlying business performance in the first half of the year was strong as we grew our revenue on improved pricing and solid new vehicle launches," said GM CEO Mary Barra. "We remain focused on keeping our customers at the center of all we do, and executing our plan to operate profitably in every region of the world."
General Motors reports that a $39.6 billion net revenue has been recorded in the second quarter, which is $500 million better than the same period last year. As for the first half of 2014, GM revenue hiked to $77 billion, a $1 billion improvement compared to the first six months last year. If you want to go into further details, please check out the press release attached below.