Barclays Capital says GM could continue vehicle-recall announcements into mid-summer
Barclays Capital said in a research note sent to investors on Thursday that vehicle-recall announcements by General Motors (GM) are likely to continue into mid-summer as the automaker is still evaluating data on vehicles.
According to the research not, analysts from Barclays Capital had a meeting with the senior management of GM in Detroit. The GM executives who met with Barclays' analysts included the company's chief of global product development, Mark Reuss; and its chief financial officer Chuck Stevens.
In all, a total of 29 recalls have been issued by GM thus far this year, affecting approximately 14 million vehicles in the US. The recall tally this year marks GM's highest yearly tally; with the number of recalled vehicles in the US being nearly 20 times more than that recalled by the automaker in 2013.
GM's pace of recall has intensified substantially after the company's call-back of 2.59 million cars because of ignition-switch flaws, as well as the consequent probes into why the GM cars - linked to 13 deaths - were recalled by the company after more than a decade of detecting the flaws.
Meanwhile, about the likelihood of recall announcements continuing into mid-summer, Brian Johnson said in the research note: "Given the data-mining is being conducted on an issue by issue, and not on a make and model-year basis, it is possible that GM may issue further recalls for vehicles which have already been recalled."