General Motors expected to report quarterly loss over faulty ignition switch recall

(WXYZ) - Auto analysts predict GM will have its first unprofitable quarter in years when the company announces first quarter earnings Thursday, April 24, 2014.

The bad financial word from Detroit will be heard on Wall Street and most likely result in a lower stock price.

“No one on Wall Street is expecting to see good numbers,” says AutoBlog Editor in Chief Sharon Carty.   

Analysts predict General Motors will see a quarterly loss of below five percent, but that’s significant since the company hasn’t seen a loss in 16 quarters dating back to the depths of the Great Recession.  

The first quarter loss may be part of a company strategy, says Carty.

“If they can take that financial hit now and it’s not dribbled out through the year it’s in their best interest to get them out of the headlines.”

The loss is largely due to GM’s 2.6 million cars recalled for faulty ignition in 2003 to 2007 models and has been linked to 31 crashes and 13 deaths resulting in CEO Mary Barra being called to testify before Congress.


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