GM Pulls Small Q1 2014 Profit, Barra One Of Time's 100 Most Influential People

Cameron Aubernon
by Cameron Aubernon

Reuters reports General Motors announced in its regulatory filing Thursday that it was under the microscope of five different government agencies related to its numerous recalls as of late. Aside from investigations by the U.S. Attorney’s Office for the Southern District of New York, the National Highway Traffic Safety Administration, and both houses of Congress, the automaker revealed the Securities and Exchange Commission and an unnamed state attorney general’s office were conducting their own probes. The filing also acknowledged GM was under the gun of 55 pending class action lawsuits in the U.S., and five of the same in Canada. GM said they were working with all of the investigations, though the automaker did not say what the SEC was looking for in its probe.

Speaking of Congress, The Detroit News reports the chairman of the U.S. House Energy and Commerce Committee, Rep. Fred Upton of Michigan, is readying the committee for a second round of hearings regarding GM’s handling of the February 2014 recall of 2.6 million 2003 – 2007 vehicles affected by the ignition switch issue which took over a decade to resolve. Though the committee is still poring over 300,000 documents related to the recall in preparation, Upton wasn’t sure if CEO Mary Barra would return to answer more questions, nor did he think it was good for public relations for the automaker to attempt to reinforce its liability shield before bankruptcy court. No date or topic for the hearing has been set thus far.

As for how hard the recalls hit GM’s bottom line, Automotive News says the automaker barely made a net profit for Q1 2014. With the aid of surging transaction prices on trucks offsetting losses linked to the various recalls, currency challenges in Venezuela, and ongoing issues in Europe, GM made $125 million during the first three months of the year. Barra told those on the call that while there have been setbacks as of late, the automaker’s overall progress was “sure and steady.”

Meanwhile, Reuters reports supplier Delphi reported a stronger Q1 2014 than had been expected, pulling a net profit of $320 million on the high demand of parts in Asia and North America. The supplier, responsible for the out-of-spec switch at the heart of the main recall, is working with GM to supply replacement switches for the affected vehicles.

Finally, The Detroit News reports Barra is one of Time magazine’s annual list of the 100 most influential people for 2014. The CEO cited her parents as major influences in her life, stating they taught her and her brother both “the value of a hard day’s work” and “the power of integrity,” adding they “continue to guide [her]” on a daily basis. In addition, former Chrysler CEO Lee Iacocca penned the following about Barra for her profile in the magazine:

Only time (and the pundits) will judge Barra and the kind of job she’ll do for GM, its board of directors, its employees, the dealers and, most important, the people who buy its cars. If she remains as forthcoming as I’ve seen her on television with Congress, she will enjoy a long tenure at the helm.

Cameron Aubernon
Cameron Aubernon

Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.

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  • APaGttH APaGttH on Apr 25, 2014

    Post bankruptcy when certain B&B were fixated on marketshare, I know others were saying they would prefer this... ...says the automaker barely made a net profit for Q1 2014. With the aid of surging transaction prices on trucks offsetting losses linked to the various recalls... I don't care if GM sells 30% of the Impalas they use to sell when they were W-bodies. If they're making mad profit on the reduced volume that sure as heck beats selling them at a loss. You can't have it both ways - as much as people want. The same people that complained about GM's lack of profitability 7 years ago are the same people complaining about their products being over priced. It ain't a charity. Now as for the quality of those products - and how they meet the customers needs - that's a whole different discussion.

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    • APaGttH APaGttH on Apr 25, 2014

      @KixStart I did write, "when certain B&B were fixated," not all. Just sayin' - I don't think I was painting with a broad brush. And there are some regulars in the B&B that are quite fixated on marketshare and GM.

  • TomHend TomHend on Apr 25, 2014

    A national Rasmussen Reports survey has found that an all-time high 53 percent of all Americans believe that neither major political party "represents the American people".

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    • Lorenzo Lorenzo on Apr 26, 2014

      @highdesertcat "Now I vote for the candidate that reflects MY beliefs, regardless of political party affiliation." But if everybody did that, politicians in Washington would be listening to a million different voices, back room deals would be impossible, and the government would be paralyzed. Hmm. Sounds like a plan.

  • Syke Kinda liked the '57, hated the '58. Then again, I hated the entire '58 GM line except for the Chevrolet. Which I liked better than the '57's. Still remember dad's '58 Impala hardtop, in the silver blue that was used as the main advertising color.
  • Dartdude The bottom line is that in the new America coming the elites don't want you and me to own cars. They are going to make building cars so expensive that the will only be for the very rich and connected. You will eat bugs and ride the bus and live in a 500sq-ft. apartment and like it. HUD wants to quit giving federal for any development for single family homes and don't be surprised that FHA aren't going to give loans for single family homes in the very near future.
  • Ravenuer The rear view of the Eldo coupe makes it look fat!
  • FreedMike This is before Cadillac styling went full scale nutty...and not particularly attractive, in my opinion.
  • JTiberius1701 Middle of April here in NE Ohio. And that can still be shaky. Also on my Fiesta ST, I use Michelin Pilot Sport A/S tires for the winter and Bridgestone Potenza for my summer tires. No issues at all.
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