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.
So Barra and the rest of the company need to do more to emphasize GM cars are still safe cars. They have to make it big, as befitting one of the world's largest car companies.
I suggest the company make a bold explanation and apology to the American public. Own up to its mistakes and explain it to everyone. Do it in the form of a TV ad. That's what GM could do to avoid bankruptcy.
This is not the first time GM has faced bad press, of course. It got a lot of it after its government bailout in 2009.