General Motor’s ongoing investigation and turmoil have worried investors, leading to a shares drop under $33 IPO price for the first time in almost a year.
In 2009, when GM went through bankruptcy, it received a $49.5 billion bailout mainly from US taxpayers and came back to the New York Stock Exchange in November 2010.
The automaker’s shares reached a record high of $41.85 in December 2013, a week after the US government had sold the last of its GM stake. Since then the shares have dropped 20%, with the steepest fall being recorded before February 13 when the automaker announced the first recall due to faulty ignition switches.
But the largest drop in a single day has been recorded on March 11, when shares fell $2 when it has been announced that federal prosecutors were investigating if GM was criminally liable for delaying the recalls and hiding the ignition switches defects.
The faulty ignition switches in six GM models, among which the Saturn Ion and the Cobalt, have been linked to 31 crashes and 12 deaths. The US giant has recalled almost 1.6 million vehicles in February and other 971,000 units last month.
Previously the automaker said it would be hit by a $750 million cost, now raised to a total of $1.3 billion – as the number of defective cars went up from 1.3 to 2.6 million.
by Mircea Serafim
) - Friday, April 11th, 2014 - filed under General Motors
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