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GM Profit Slammed by Recall Costs, Compensation Fund

So far this year GM has recalled almost 30 million vehicles, a company record, and it's hitting the automaker's bottom line.
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/ Source: Associated Press

GM's second-quarter profit dropped 85 percent as recall costs lopped $85 billion off its bottom line. Here's the litany of GM's pretax charges due to one of the most massive recalls in its history: $400 million to compensate victims of ignition-switch related crashes; $874 million to account for recall expenses during the next 10 years; and $1.2 billion for recalls announced during the quarter. In last year's second quarter, GM made $1.26 billion, or 75 cents per share. This year the automaker posted a net profit of $190 million, or 11 cents per share, including restructuring and recall-related expenses. So far this year GM has recalled almost 30 million vehicles, a company record.

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-- By The Associated Press and NBC News Staff