Are You There, GM? It's Me, the Federal Government

Last month, General Motors (NYSE: GM  ) recalled 1.6 million cars over a problem with ignition switches that suddenly turned off and cut power. Now federal prosecutors are investigating whether GM is criminally responsible for not properly disclosing the problem, which first came to light 10 years ago. U.S. subcommittees in the House and Senate are currently planning hearings.

In this segment from Wednesday's Investor Beat, host Chris Hill and Motley Fool analysts Jason Moser and Bryan White discuss just how big a deal this may be for GM. Jason's opinion is that this primarily calls previous leadership into question, setting a low bar for current CEO Mary Barra to outshine, depending on her and her team's handling of this. The guys also note that even large recalls can be somewhat frequent, and Bryan tells investors why the stock isn't taking much of a hit as a result. The guys also discuss whether hey like the stock and the industry today.

Looking for two great automaker stocks to buy ahead of the curve?
U.S. automakers boomed after World War II, but the coming boom in the Chinese auto market will put that surge to shame! As Chinese consumers grow richer, savvy investors can take advantage of this once-in-a-lifetime opportunity with the help from this brand-new Motley Fool report that identifies two automakers to buy for a surging Chinese market. It's completely free -- just click here to gain access.


Read/Post Comments (1) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On March 12, 2014, at 7:51 PM, GETRICHSLOW2 wrote:

    Interesting that the feds waited until after they sold all their shares in GM to pursue this.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2873915, ~/Articles/ArticleHandler.aspx, 10/24/2014 9:02:01 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement