02.07.2014 - General Motors is recalling 8.5 million vehicles
The stock price of General Motors continues to grow, despite the news about a new recall of vehicles. Support for the bulls is provided by the news about the growth of car sales in the U.S. in June by 1.0% versus the expected decline by 8.5%.
It is worth noting that the company has announced a recall of 8.5 million vehicles to correct a defect of ignition, which has led to 16 deaths. The amount of compensation to the victims and their families will be from 20 thousand to several million dollars. This year has been recalled 29 million vehicles, more than the company sold during the period 2005-2013. We expect that the company's share price growth will be short and the price will decline in the medium term by 6-8%.