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General Motors Stock Falls Below $32 As Recall Rumors Circulate

General Motors saw their stock prices fall below $32 on Friday due to rumors circulating around a recall.  This is the first time in over a year that stock prices have been this low.

General Motors Stock Falls Below $32 As Recall Rumors Circulate

General Motors Stock Falls Below $32 As Recall Rumors Circulate

General Motors Stock Falls Below $32 As Recall Rumors Circulate

Though stock markets saw a decrease of about 1%  on Friday, General Motors saw an overall decrease of about 4%.

General Motors reported an increase in cost to repairing some recalls that they announced earlier this year.  The recalls are based on faulty ignition switches that have caused accidents and deaths in both Canada and the United States.  The switches can shut off the engine and cause the airbags to be disabled.  Another recall has since been issued around faults with the ignition switch but with different issues.

Another issue has arisen that caused the stock to plummet.  The CEO, Mary Barra, received an email about possibly recalling another vehicle that was not recalled.  Due to her inaction, she is being questioned about knowing more about faults in General Motors vehicles than she disclosed.  The company is complying in producing any documents needed to prove that Barra was not aware of faults in vehicles that were not recalled.

Also, Senators Richard Blumenthal (D-Conn.), Barbara Boxer (D-Calif.), Edward Markey (D-Mass.), Bob Casey (D-Penn.) and Mazie Hirono (D-Hawaii) wrote a letter asking U.S. Attorney General Eric Holder to require General Motors to set up a fund for those families who lost members due to the fault.  They also want to make sure that the company admits to fault in these issues and does not escape without it.  Barra has replied that they will do the right thing but has not let on to what that may be.

General Motors Stock Falls Below $32 As Recall Rumors Circulate

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