Subscribe to Breaking News emails

You have successfully subscribed to the Breaking News email.

Subscribe today to be the first to to know about breaking news and special reports.

GM Profit Slammed by Recall Costs, Compensation Fund

/ Source: Associated Press

Breaking News Emails

Get breaking news alerts and special reports. The news and stories that matter, delivered weekday mornings.

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.

Sign up for top Business news direct to your inbox.

IN-DEPTH

-- By The Associated Press and NBC News Staff

Breaking News Emails

Get breaking news alerts and special reports. The news and stories that matter, delivered weekday mornings.
MORE FROM news