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GM Needs to Do This Now to Avoid Bankruptcy

NEW YORK (TheStreet) -- After a relatively quiet period for several weeks, General Motors (GM) has once again rattled investors with more bad news. Let's highlight what's been going on and what we've covered here at TheStreet:

May 15: GM recalls 2.7 million vehicles and takes a $200 million charge. Year-to-date recalls total 11.1 million vehicles. We said, Seriously General Motors -- These Recalls Are a Disgrace

May 16: GM receives the maximum fine from the Department of Transportation for its handling over the ignition switch recall. Fine totals $35 million. 

May 20: GM recalls 2.4 million vehicles and takes an additional $200 million charge. Year-to-date recalls total 13.6 million vehicles. We said, Latest Recalls add to GM's Woes.

May 21: GM recalls an additional 218,000 vehicles.

Oy vey. 

From the beginning, I have been saying it looks like GM's stock is headed toward the $30 to $32 range. It closed as low as $31.93, before rebounding back to around $35. After settling down for a few weeks, the stock has started to crack and looks as if it could be headed lower once again. On Thursday morning, it was trading at $33.61, up 15 cents.

Year-to-date charges have eclipsed $2.4 billion and we're not even halfway through 2014 yet. The company's reputation is taking a beating in the investing community, and the more I talk to everyday people, the more I realize that so is the automaker's public perception.

Although sales have yet to feel the pinch -- April sales rose 6.9%, it may be only a matter of time before U.S. consumers collectively shake their heads in disappointment and open their wallets to Ford (F), Chrysler, Toyota Motors (TM) and others. 

Why shouldn't they? 

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