People with knowledge of the matter said that General Motors Co., which is the largest auto manufacturer in the U.S., is trying to restore and improve the efficiency of its legal department while it its trying to eliminate the reasons that led to a delay of the vehicle recalls.
Moreover, General Motors Co. added another 2.4 million vehicles to the list of recent safety withdrawals, which raised its repair costs to 1.7 billion dollars. 29 separate recalls have been revealed by the company since the beginning of 2014. The withdrawals amount to a total of 15.4 million vehicles globally, which equals to about 150% of the companys production generated in 2013.
General Motors Co. made a statement, saying that the latest recalls would cost about 200 million dollars as the Chief Executive Officer of the company Mrs. Mary Barra is trying to improve its quality processes in an attempt to prove GMs vehicles are safe enough.
According to the companys official announcement, there were various vehicle models included in the latest withdrawals. As reported by the Financial Times, General Motors reported that there werent any fatalities related to the faults, and explained that the recalls were part of “a continuing effort to quickly address emerging safety issues”.
One of the people familiar with the process reported that Mr. Michael Millikin, who is the General Counsel of the company, took the initiative of assigning a legal adviser to work in cooperation of global safety and vehicle development units managers to make the information flow faster. Currently the company is doing everything possible in order to repair its corrupted safety reputation.
Mr. Millikin revealed there may be further changes after the completion of the internal investigation carried out by the company. The process is expected to be finalized in the next few weeks, according to a person close to the issues, who asked not to be identified because the investigations are not public.
General Motors Co. was 3.45% down to close at 33.07 dollars per share yesterday, marking a one-year change of -1.87%. According to the information published on CNN Money, the 17 analysts offering 12-month price forecasts for General Motors Co. have a median target of 44.00, with a high estimate of 50.00 and a low estimate of 32.00. The median estimate represents a +33.05% increase from the last price of 33.07.
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