GM profits hit by cost of recalls

http://www.bbc.co.uk/news/business-27142912

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General Motors has seen first quarter profits hit by a $1.3bn (£774m) charge to cover the cost of a huge recall of cars over defective ignition switches.

The faulty switches could turn off the engine, disabling the airbags and have been linked to at least a dozen deaths.

The firm says it also incurred $300m in restructuring costs, mostly in Europe.

As a result net income was $125m, compared with $865m in the same period last year. Sales came in at $37.4bn, up from $36.9bn in 2013.

The firm said that of the $1.3bn recall charges, some $300m was to cover the cost of courtesy cars.

It was GM's worst quarterly performance since it posted a net loss after leaving bankruptcy protection in 2009.