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UPDATE: General Motors (NYSE: GM) Recall Is a "Legacy Issue for Years to Come"

By , Associate Editor, Money Morning • @TaraKateClarke -

UPDATE: A study released Thursday night by a public interest group, The Center for Auto Safety, claims that there were 303 deaths in recalled General Motors Company (NYSE: GM) cars in which airbags did not deploy. The study examined federal data to reach its conclusion.

What's more, the group's report states that GM intentionally misrepresented raw information about the crashes.

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2014 General Motors (NYSE: GM) Recalls Will Be a "Legacy Issue for Years to Come"

By , Associate Editor, Money Morning • @TaraKateClarke -

UPDATE: Today (Monday), General Motors Company (NYSE: GM) announced three more 2014 recalls. So far this year, GM stock has been feeling the sting of recall fallout, to the tune of a nearly 16% drop to $34.39 per share.

The most worrisome of today's recalls, both in terms of consumer safety and number of vehicles affected, is an air bag issue that will have to be fixed for 1.2 million of GM's crossover SUV models. If a customer ignores a warning light that reads "Service Air Bag," it can result in non-deployment on a side impact collision.

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General Motors (NYSE: GM) Recall Is a "Legacy Issue for Years to Come"

By , Associate Editor, Money Morning • @TaraKateClarke -

Thursday's General Motors Company (NYSE: GM) recall of nearly 800,000 compact cars in North America is markedly different from the slough of other 2014 recalls from the likes of Toyota Motor Corp. (NYSE: TM), Ford Motor Corp. (NYSE: F), and Tesla Motors Inc. (Nasdaq: TSLA).

That's because, according to depositions in a civil lawsuit against GM, the carmaker knew about the defect that's caused fatal and nonfatal crashes since at least 2004.

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General Motors (NYSE: GM) Stock Shrugs Off Weak Earnings

By , Associate Editor, Money Morning • @DavidGZeiler -

After a strong 2013, General Motors Company (NYSE: GM) stock has slumped so far this year and could use an earnings beat when it announces results Thursday morning before the markets open.

Analyst expectations for General Motors earnings per share (EPS) have slipped from $0.90 three months ago to $0.87 now, which is partly responsible for the 13.5% slide in GM stock so far this year.

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Can General Motors Co. (NYSE: GM) Shake Off Trouble from Europe?

By , Associate Editor, Money Morning -

General Motors Corp. (NYSE: GM) reported today (Thursday) its biggest annual profit ever for 2011, but weakness from Europe could dull the share-price rally.

Net income for the 2011 fiscal year hit $7.6 billion, 62% higher than the $4.7 billion GM earned a year ago and more than the previous record of $6.7 billion in 1997. Revenue increased 11% to $150.3 billion.

Net income for the quarter hit $472 million, or 28 cents a share, down from $510 million, or 31 cents a share, a year ago.

North America was GM's biggest income driver, accounting for $7.2 billion of the year's profit. GM suffered a $747 million loss in Europe, where consumer spending is struggling.

"We clearly have work to do in Europe," GM Chief Financial Officer Dan Ammann told reporters. "We have work to do in the South America business. Frankly, we have work to do all around the company in terms of cost opportunity."

Investors remain wary over how successful GM will be at maintaining its profit rise as long as Europe remains weak - and looks increasingly weaker.

"Just because things were looking OK at the end of last year doesn't mean that they will continue to look OK," Richard Cookson, chief investment officer of Citi Private Bank, told MSNBC. "Our best guess is that conditions will continue to deteriorate. This is going to be unpleasant, to put it mildly."



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Stock Market Analysts and Insiders Wave Caution Flags After $20 Billion GM IPO

By , Money Morning -

General Motors Co. (NYSE: GM) yesterday (Thursday) raised $20.1 billion in an initial public offering (IPO) that moves the company closer to paying back the taxpayer funds it received in a bailout last year.

However, GM's journey doesn't end there. Even after all of the IPO money changes hands, the company will still owe the federal government more than $26 billion. And the challenges that drove the company into bankruptcy to begin with – union payouts, tougher competition, and higher gas prices – are still relevant.

Ford Motor Co. (NYSE: F), Honda Motor Co. (NYSE ADR: HMC), and Toyota Motor Co. (NYSE ADR: TM) remain as well, having avoided bankruptcy all together.

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Buy, Sell or Hold Special Report: How Retail Investors Should Play the GM IPO

By , Money Morning -

If you are one of the millions of retail investors who found themselves totally out of luck on the General Motors Co. (NYSE: GM) initial public stock offering, don't fret.

Although the GM IPO is over, the profit opportunity has just begun.

The incredibly oversubscribed GM IPO may well have been the biggest stock offering in global history. But I believe that this stock has plenty of room to run.

In fact, I believe this is a stock that you'll want to buy in the aftermarket - provided that you follow some very strict guidelines for share prices and timing.

Let me explain...

To hear the best strategy for buying GM shares in the aftermarket, please read on...

GM Whets Investors' Appetite for IPO With $2 Billion Third Quarter Profit

By , Contributing Writer, Money Morning -

General Motors Co. reported a profit for the third straight quarter yesterday (Wednesday) and said it is on a path this year to produce its first annual profit since 2004, gathering critical momentum for its planned initial public offering (IPO) next week.

The world's largest automaker said profits rose to $2.16 billion in the third quarter and revenue rose 20% to $34.1 billion. The company reported earnings per share of $1.20, compared to a loss of 73 cents a share in July through September last year, after it exited bankruptcy reorganization.

"It's a very strong quarter financially," Dennis Virag, president of Automotive Consulting Group in Ann Arbor, Michigan, told Bloomberg News in a telephone interview. "They've taken the excess capacity out of the system and cut costs throughout the organization. Any gain in the overall market is going to be very positive for General Motors, and the market has turned around from 2009."

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GM's $10.6 Billion IPO Could be an Enticing Opportunity For Investors

By , Contributing Writer, Money Morning -

General Motors in an initial public offering (IPO) this month will price its shares at a level that could regenerate investor interest, and even throw off generous returns over time.

At least that's the hope of the U.S. government, which is likely to see its taxpayer-owned stake fall to less than the symbolically important 50% level when it sells approximately $7 billion of its shares in the IPO.

GM, 61% owned by the U.S. Treasury Department, will offer 365 million shares at $26 to $29 each, people familiar with the matter told The Wall Street Journal. The automaker also will offer $2 billion to $3 billion of preferred shares that later will become common stock, the people said.

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