GM sets aside at least $400M to pay recall victims

General Motors Co. said it will spend at least $400 million to pay victims of the 2.59 million compact cars with a potentially faulty ignition switch linked to at least 13 deaths.

By Tim Higgins, Bloomberg | Updated on July 24, 2014

(Bloomberg) — General Motors Co., posting a second-quarter profit that missed analyst estimates, said it will spend at least $400 million to pay victims of the 2.59 million compact cars with a potentially faulty ignition switch linked to at least 13 deaths.

Profit excluding one-time items was 58 cents a share, helped by redesigned pickups and large sport-utility vehicles in the U.S. and improved sales in China, GM said today in a statement. That compared with an average estimate of 59 cents from 14 analysts, according to data compiled by Bloomberg. The biggest U.S. automaker reported earning 84 cents on that basis a year earlier. GM slid 2.3% to $36.54 at 9:41 a.m. New York time.

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