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General Motors (GM) Appeals against Lower Court Ruling
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General Motors Company (GM - Free Report) filed a petition in Supreme Court against a lower court verdict which deems the company responsible for casualties caused by faulty ignition switches.
Over a long period, General Motors has been facing issues for delaying the recall of 2.6 million vehicles with defective ignition switches, which can lead to abrupt shutting down of the engine and prevention of front air bag deployment in the event of a crash. The company issued a recall in Feb 2014 although the problem was identified in 2001. This violated the law requiring automakers to alert The National Highway Traffic Safety Administration (“NHTSA”) about any safety concern in vehicles within five business days of recognizing the problem.
General Motors has coughed up $2 billion as settlements for the defective ignition switches to the U.S. Justice Department, shareholders and consumers. The company also paid around $575 million to resolve shareholder litigations and to settle death and injury claims.
In Jul 2016, a federal appeals court ruled that the automaker cannot use the 2009 bankruptcy as an excuse to defend itself against lawsuits over the defective ignition switches. This ruling has exposed the company to several additional liabilities. General Motors has put forward that according to the bankruptcy law, new General Motors should receive the assets of the old company clear of any liabilities.
General Motors has outperformed the Zacks categorized Auto Manufacturers-Domestic industry so far this year. Share price of the company increased 9.85% so far this year, while the industry saw a 3.75% increase. The company benefitted from the strong results in the last quarter and business initiatives including the expansion of Maven and investment in facilities. Expectations of higher earnings in 2016 also provided optimism.
Zacks Rank & Other Key Picks
General Motors currently carries a Zacks Rank #2 (Buy).
Other favorably ranked companies in the auto space include Allison Transmission Holdings, Inc. (ALSN - Free Report) , America's Car-Mart Inc. (CRMT - Free Report) and Rush Enterprises, Inc. (RUSHA - Free Report) .
Allison Transmission has a long-term growth rate of 11%.
America's Car-Mart has a long-term growth rate of 45.50%.
Rush Enterprises has a long-term expected growth rate of 15%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>
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General Motors (GM) Appeals against Lower Court Ruling
General Motors Company (GM - Free Report) filed a petition in Supreme Court against a lower court verdict which deems the company responsible for casualties caused by faulty ignition switches.
Over a long period, General Motors has been facing issues for delaying the recall of 2.6 million vehicles with defective ignition switches, which can lead to abrupt shutting down of the engine and prevention of front air bag deployment in the event of a crash. The company issued a recall in Feb 2014 although the problem was identified in 2001. This violated the law requiring automakers to alert The National Highway Traffic Safety Administration (“NHTSA”) about any safety concern in vehicles within five business days of recognizing the problem.
General Motors has coughed up $2 billion as settlements for the defective ignition switches to the U.S. Justice Department, shareholders and consumers. The company also paid around $575 million to resolve shareholder litigations and to settle death and injury claims.
In Jul 2016, a federal appeals court ruled that the automaker cannot use the 2009 bankruptcy as an excuse to defend itself against lawsuits over the defective ignition switches. This ruling has exposed the company to several additional liabilities. General Motors has put forward that according to the bankruptcy law, new General Motors should receive the assets of the old company clear of any liabilities.
GENERAL MOTORS Price
GENERAL MOTORS Price | GENERAL MOTORS Quote
Price Performance
General Motors has outperformed the Zacks categorized Auto Manufacturers-Domestic industry so far this year. Share price of the company increased 9.85% so far this year, while the industry saw a 3.75% increase. The company benefitted from the strong results in the last quarter and business initiatives including the expansion of Maven and investment in facilities. Expectations of higher earnings in 2016 also provided optimism.
Zacks Rank & Other Key Picks
General Motors currently carries a Zacks Rank #2 (Buy).
Other favorably ranked companies in the auto space include Allison Transmission Holdings, Inc. (ALSN - Free Report) , America's Car-Mart Inc. (CRMT - Free Report) and Rush Enterprises, Inc. (RUSHA - Free Report) .
All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Allison Transmission has a long-term growth rate of 11%.
America's Car-Mart has a long-term growth rate of 45.50%.
Rush Enterprises has a long-term expected growth rate of 15%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>