General Motors reported earnings of $125 million in the first quarter of 2014, down 85.5% from the same three-month period in 2013.
The decrease is attributed, in a big part, to a $1.3 billion charge for recalls.
The company’s recall related expenses in the quarter included about $700 million for the ignition switch and cylinder recalls of 2.59 million vehicles and about $600 million for recalls of another 4.5 million vehicles. In total, the recall expenses hurt earnings by 48 cents a share.
In 2013, GM earned $865 million in the first quarter, or 58 cents a share.
Source: The Detroit News
