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Height Analytics: Congress May Think GM Recalls Are Not Fully Conveyed

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Height Analytics: Congress May Think GM Recalls Are Not Fully Conveyed
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General Motors (NYSE: GM) surprised investors Tuesday by reporting one percent year-over-year sales growth for the month of June, while Wall Street predicted a 6.6 percent decline.

Despite almost 27 million vehicles recalled, sales pressed higher.

Benzinga spoke to Henrietta Treyz of Height Analytics to gain insight on what this latest update may mean. Height Analytics focuses on the regulation and legislative impact that Congress can have on firms.

Related: Ford Reports June Sales; Shares Volatile on Results

"Members [of Congress] are getting anxious that the impact of these recalls are not being conveyed to consumers," started Treyz. "I don’t think Barra can do anything she hasn’t already done, but that won't stop members from asking for more. We are still awaiting a second senate hearing on the GM recalls."

The additional outreach Congress is likely to ask for could come in the form of conference calls and additional press releases, according to Treyz. The additional Denate hearing will most likely take place from mid- to late-July, where Congress may be very confrontational.

Shares of General Motors were last trading up 2.98 percent to $37.38. This move more than erases Monday’s losses from an additional 8.4 million cars recalled.

Posted-In: auto sales comments Height Analytics Henrietta TreyzAnalyst Color News Retail Sales Legal Best of Benzinga

 

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