Despite a ton of bad publicity over its seemingly endless recall announcements over its faulty ignition switches and the resulting coverup, sales at General Motors have yet to show any signs of serious weakness. Kelley Blue Book forecasts GM to add a 7.2% gain to May's auto sales.
Investors were very happy to hear CEO Mary Barra apologize for the problems that led to the recall and the resulting government fines when she testified before Congress. GM shares are currently trading around $34.50, down 15.6% for the year to date but are down a bit less than 1% for the preceding 52 weeks.
Address the issue up front and maybe the automaker will regain respect rather than flack for doing so. It shows ownership and strength, not weakness. It would be commendable, not condemning.
A General Motors spokesman told me that the recent issues have had "no effect" on sales and that any suggestion future sales will fall is only speculation.
As to the speculation, GM had "no comment." Still, would it hurt to go before America and say, "We're sorry?" I don't think so. At the time of publication the author was long F. Follow @BretKenwell
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.
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