General Motors Announces Recall Of 1.4 Million Cars; Shares Dip Lower

• Shares of General Motors Company GM were trading lower by 1.32 percent early Tuesday afternoon.
• The stock was trading even lower Tuesday morning after the company announced a recall of 1.4 million cars.
• The recall is the third in seven years and affects vehicles dating back to 1997.

Shares of General Motors rebounded from its session lows of $34.76 on Tuesday after the company announced its third recall in seven years, according to an < A href="http://bigstory.ap.org/article/dacda44d267c49bca9d8d54021f9fc06/gm-recalling-14m-cars-oil-leaks-can-cause-engine-fires">AP report. The recall is necessary as affected vehicles that leak oil could catch on fire and damage garages and homes. The recall includes the 1997-2004 Pontiac Grand Prix and Buick Regal; the 2000-2004 Chevrolet Impala; the 1998 and 1999 Chevrolet Lumina and Oldsmobile Intrigue; and the 1998-2004 Chevrolet Monte Carlo. The affected vehicles were included in prior recalls in 2008 and 2009. More than 1,300 cars caught on fire after they were fixed by dealers. The company is advising owners to park their cars outside of a garage as most of the fires occurred shortly after the car was parked and engine turned off. The AP report noted that General Motors acknowledged 19 minor injuries were caused by the defect. The report also noted that in 2008 the company said the affected cars were responsible for 267 fires, including at least 17 that damaged structures. The current recall may be large enough to impact General Motors' fourth quarter results, which isn't expected until 2016. A company spokesperson, Alan Adler, told AP "since we have not decided on a remedy, we do not know whether the cost will result in a material charge to earnings."