GM revealed late Wednesday that it knew about faulty ignition switches as early as 2001, three years before the date it previously reported, but has yet to determine the entire problem. The car maker is now at the center of three different investigations, including a criminal investigation, according to The Wall Street Journal. Transportation Secretary Anthony Foxx also told reporters in Washington on Wednesday that he had a "high level of confidence" in the National Highway Traffic Safety Administration, "but we'll continue watching as facts unfold and see where we are," according to Reuters.
Separately, Delphi Automotive (DLPH), which makes the component at the center of the problem, said that it only takes a few dollars to make and minutes to install, which has led some to wonder why the problem persisted for so long. Delphi said earlier this week it plans to spend between $2 and $5 to create a replacement ignition switch that could be "swapped out" in mere minutes by mechanics at GM dealerships, according to The Wall Street Journal.
TheStreet Ratings team rates GENERAL MOTORS CO as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate GENERAL MOTORS CO (GM) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had sub par growth in net income."