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.