General Motors have known as one of the pioneers in the automotive industry across the global market. In recent times, owing for manufacturing flaws around 23 fatal incidents due to faulty ignition switch has been recorded in the international market. As per a latest statement released by Mary Barra, CEO, General Motors, the new replacement parts for the affected one are ready. The affected crash victims shall receive about $400 million to $600 million as compensation from the company.
General Motors had announced 2.6 Million cars recall in February this year, of which, the company says that 1.1 Million have been fixed. As reported earlier, owing to faulty ignition switch, the vehicle’s engine would stall unexpectedly and deactivate the air bags. Barra has reassured investors stating a strong plan from the company for future. The concern was shown by investor post 18% dip in stock for this year.
China being a strong market for automobiles, Berra said that the company shall make extra efforts to sell cars in the Chinese market. The company also expects about 27 per cent of its global sales to come from new or freshened models next year. Based on reports from sources, General Motors is likely to get 10 % pretax profit margin in North America by 2016 and 10% for the whole company by early next decade.
