GM Closes Out 2014 With Total 84 Recalls for 30 Million Vehicles

Cars and Drivers

Published: January 2, 2015 1:40 pm

Last Updated: April 27, 2020 10:10 pm

General Motors Co. (NYSE: GM) began 2014 with a recall of more than 300,000 of its light-duty pickup trucks. In February the automaker recalled more than 1.6 million North American vehicles for an ignition switch defect that the company had ignored for a decade.

On the first day of the new year, the company revealed a December recall of more than 83,000 Cadillac Escalade and Chevrolet Yukon full-size SUVs to replace a faulty ignition switch. Two other recalls were also announced for 56 Chevy and GMC heavy-duty pickup trucks built with a faulty hose clamp and 152 Silverado and GMC 1500 pickups with rear-axles that may fracture while in use.

The number of deaths that have been linked to the faulty ignition switch recall has risen from 13 to its current level of 42. GM created a compensation fund in June to review claims related to deaths and injuries from the defective switch. The company will continue to accept claims until the end of January, so the total may rise.

GM’s share price dropped about 14% in 2014, far less than might have been expected for a company that recalled more than 30 million vehicles. Ford Motor Co. (NYSE: F) stock has declined less than 2% over the year, and Toyota Motor Corp. (NYSE: TM) posted a gain of more than 4% for the year.

Shares of Honda Motor Co. Ltd. (NYSE: HMC) performed even worse than GM’s. Honda’s share price fell nearly 28% in 2014.

For the fourth quarter of 2014, analysts expect GM to post earnings per share of $0.84 on revenues of $40.2 billion. For the full year, consensus estimates call for earnings per share of $2.64 on revenues of $157.03 billion. The stock traded at $34.53 on Friday, down 1.1%, in a 52-week range of $28.82 to $41.06.

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