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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 - Get Report) 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 - Get Report), Chrysler, Toyota Motors (TM) and others. 

Why shouldn't they? 

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