Ford Motors has announced it will cancel a $1.6 billion facility it planned to build in Mexico and instead extend operations at its factory in Michigan.
The company will spend $700 million on expanding the plant at Flat Rock.
The car giant said it needed to re-organize to use existing facilities more efficiently amid falling sales of its smaller cars.
Donald Trump has criticized both Ford and its rival General Motors over production of models in Mexico.
Earlier, the president-elect tweeted his disapproval of GM’s production of the Chevy Cruze in Mexico.
Ford CEO Mark Fields said the decision to cancel was in part related to the need to “fully utilize capacity at existing facilities” as sales of small and medium sized cars, such as the Focus and Fusion, fall – but he also said the decision was a vote of confidence in the business environment Donald Trump was creating.
However, the automaker is not abandoning production completely in Mexico, but is switching production of its Focus model to its existing plant in Hermosillo there to improve profitability.
Ford makes the current version at its plant in Wayne in Michigan. Production at that facility will switch to two new models, which it says will safeguard 3,500 US jobs.
The planned $1.6 billion facility in Mexico was to be built in San Luis Potosi, but Ford said it would now invest some of that sum in Flat Rock, creating 700 jobs building a range of electric cars.
On January 3, Donald Trump criticized GM on Twitter for making cars built in Mexico and made available tax-free in the US.
He tweeted: “General Motors is sending Mexican made model of Chevy Cruze to US car dealers-tax free across border. Make in U.S.A. or pay big border tax!”
However, General Motors said most of its Chevy Cruze cars were made in the US.
A spokesman said only the hatchback model, which forms a small percentage of sales, was made in Mexico.
He added that the car was built there for global production and said that although some Cruze sedans were made in Mexico for a while last year, all the ones now sold in the US were manufactured in Ohio.
Glenn Johnson, president of a union at the Lordstown factory in Ohio, said there had been no protest about the move of sedan production across the border.
Responding to Donald Trump’s tweet, he said: “It makes for news, that’s all.”
Donald Trump has criticized other US industry titans since his election win and has vowed to make good on campaign promises to bring jobs back to America by, as he puts it, leveling the playing field.
However, some commentators have expressed concern that restricting imports could damage the US economy.
In November, General Motors said it would lay off around 1,250 workers at Lordstown and around 800 at its plant in Michigan from the middle of January, although some may find work at other factories.
The Justice Department has reached a $900 million settlement with General Motors over the issue of faulty ignition switches.
GM was being investigated for not checking millions of cars, despite staff knowing for more than a decade about the defect.
The fault has been linked to more than 100 confirmed deaths.
It could shut down engines, disable power-assisted steering and brakes and prevent airbags working.
GM has admitted it did not alert regulators and the public, failing to issue a timely recall of vehicles.
The DoJ has agreed not to seek a conviction in exchange for the settlement and the appointment of an independent monitor at the company.
However, the US Attorney’s Office did say that GM “admits that it failed to disclose a safety defect to NHTSA [National Highway Traffic Safety Administration] and misled US consumers about that same defect”.
The settlement was disclosed in papers filed on September 17 at a Manhattan federal court.
General Motors, the largest carmaker in the US, did not begin recalling some 2.6 million cars worldwide until February 2014, after years of avoiding any acknowledgement of the problem.
This quickly ballooned to nearly 30 million cars by the end of 2014, as the company began actively recalling any cars that could possibly have defects.
It also set up a claims fund to compensate victims who could prove they suffered harm as a result of the defect.
GM filed for bankruptcy in 2009 during the height of the financial crisis.
The carmaker’s boss, Mary Barra, who took over in January 2014, is keen to show she has changed the culture within the company.
Previously Mary Barra has said that GM engineers, managers and workers know they must come forward once a problem has been identified or they will be held responsible.
General Motors has announced six more recalls covering 717,950 vehicles in the US for varying reasons, although none were related to ignition switch issues, Reuters reported.
Only this year GM has recalled nearly 15 million vehicles worldwide for potentially lethal issues with ignition switches.
The largest recall announced on July 23 is for a potentially loose bolt in power adjustable front seats for several cars from model years 2010 and 2012.
Vehicles involved in the today’s recalls have been linked to two crashes and three injuries but no deaths, the carmaker said.
Most of GM’s recalls this year have been for older models, but many of the recalls announced Wednesday are for current-model vehicles, including about 57,000 Chevrolet Impala sedans from the 2014 model year for the loss of power steering.
GM will recall 717,950 vehicles in the US for varying reasons, although none were related to ignition switch issues
The latest recalls hit GM’s best-selling vehicles, the Chevrolet Silverado and GMC Sierra pickup trucks, from the 2014-2015 model years. They were among about 124,000 vehicles across eight model lines recalled because a weld on seat brackets may not have been done properly.
The company said it expects that 1% of welds were not completed properly.
Others recalled include three Cadillac models from the 2014 model year, – the ATS, CTS and ELR.
The largest of the recalls announced today was for 414,333 vehicles that may have a loose bolt to adjust front seat heights. Consumers are advised not to use the power seat height adjuster until dealers can replace a bolt.
Vehicles involved in this recall include the 2010-2012 Chevrolet Equinox and GMC Terrain crossovers; the 2011-2012 Buick Regal and LaCrosse sedans; the 2010-2012 Cadillac SRX crossovers and the 2011-2012 Chevrolet Camaro sports cars.
The carmaker did not report how many more vehicles will be included in the six recalls outside the US.
GM has recalled about 29 million vehicles worldwide this year, of which about 25.7 million have been in the US.
General Motors is recalling another 8.4 million cars, including 7.6 million in the US.
The vehicles are mostly cars manufactured between 1997 and 2014 and are being recalled for ignition switch defects.
Among the recalled vehicles, the US car giant says it is aware of seven crashes, eight injuries and three fatalities.
GM said it would take a charge of $1.2 billion for recall-related repairs – up from the $700 million it had previously estimated.
GM is recalling another 8.4 million cars over faulty ignition
However, GM said there was “no conclusive evidence” that the switch defects directly caused the crashes.
GM CEO Mary Barra said in a statement: “We undertook what I believe is the most comprehensive safety review in the history of our company because nothing is more important than the safety of our customers.”
“Our customers deserve more than we delivered in these vehicles.”
The new recalls come on the same day GM announced details of a compensation fund for recall victims.
Kenneth Feinberg – the man GM appointed to deal with compensating those affected by the recalls – has said that the carmaker will not put a cap on the amount it will pay to victims.
Separately, Orange County, California, revealed it had filed a civil lawsuit against GM last Friday.
The Orange County District Attorney alleged that GM “endangered the public through deception regarding vehicle safety and reliability and gained advantage over its competitors by engaging in unfair business practices”.
GM has announced it is recalling 511,508 Chevrolet Camaro cars, mostly in North America, after finding a fault with the ignition system.
The carmaker said a driver’s knee could bump the key fob and turn it out of the “run” position, causing a loss of power.
General Motors said the fault had led to three crashes, causing four “minor” injuries.
In March, GM recalled 2.6 million small cars because of a faulty ignition switch linked to 13 deaths.
GM is recalling 511,508 Chevrolet Camaro cars after finding a fault with the ignition system
In May, the carmaker was fined $35 million for failing to address different defects which have been linked to 13 deaths.
GM has recalled more than 13 million cars in the US this year – more than the carmaker sold in 2013.
In addition to Chevrolet Camaro recall, GM also announced it was recalling 28,789 Saab 9-3 convertibles from the 2004-2011 because of concerns over front seat belt failures and 21,567 Chevrolet Sonic cars from 2012, because of concerns over a transmission fault.
GM is also recalling 14,765 of its 2014 Buicks, because of fears over an electrical wiring fault.
Previous recalls have involved possible faulty seat belts, transmissions and air bags, as well as potential fire issues.
“The Camaro ignition system meets all GM engineering specifications and is unrelated to the ignition system used in Chevrolet Cobalts and other small cars included in the ignition switch recall,” GM said in a statement.
GM has accepted the findings of a “brutally tough, deeply troubling” report into recalls of its Chevrolet Cobalt over ignition problems which have been linked to 13 deaths.
The carmaker also said it would launch a compensation fund for crash victims and their families.
CEO Mary Barra said the report, which was carried out by former US Attorney Anton Valukas, found “the Cobalt saga was riddled with failures”.
She said 15 employees have been fired.
Five other workers who acted “inappropriately” have been disciplined.
To date, GM has recalled 2.6 million cars with the defective switch.
GM has accepted the findings of a troubling report into recalls of its Chevrolet Cobalt over ignition problems
It took the carmaker more than a decade to report the ignition switch failures, in which the switch can slip out of the “run” position and effectively shut down the car, causing the driver to lose control.
Although the problem has been linked to 13 deaths so far, lawyers for victims put the total at closer to 60.
Mary Barra, in announcing the results of Anton Valukas’s report which involved over 200 employee interviews and more than 40 million documents, promised to “fix the failures in our system”.
However, in a statement, GM emphasized that the report had found no conspiracy or cover-up.
“The Valukas report confirmed that Mary Barra, [and other GM executives] Mike Millikin and Mark Reuss did not learn about the ignition switch safety issues and the delay in addressing them until after the decision to issue a recall was made on January 31, 2014,” GM chairman Tim Solso said.
Last month, GM paid a $35 million fine – the maximum allowed by US law – for its failure to report the ignition switch problems in a timely manner.
Analysts said that GM was hoping this report would be the final word on the matter.
The compensation fund will be run by Kenneth Feinberg, who also led claims processing in the wake of September 11 and the BP oil disaster in the Gulf of Mexico.
“I will be spending the next few weeks seeking advice and input from all interested parties as to the terms and conditions of such a program,” said Kenneth Feinberg in a statement.
He said the fund would start taking claims on August 1.
GM shares barely budged in the wake of the report. Earlier this week, it reported its best May sales in seven years.
The US government has fined GM $35 million for delays in recalling small cars with faulty ignition switches.
The fine is the maximum allowed by US law.
General Motors said it had already begun reviewing its processes and policies to avoid future delays to recalls of this nature.
To date, the carmaker has recalled 2.6 million cars with the defective switch, which has been linked to 13 deaths.
The National Highway Traffic Safety Administration Board (NHTSA) said it was the single highest civil penalty ever levied as a result of a recall investigation.
“Safety is our top priority, and today’s announcement puts all manufacturers on notice that they will be held accountable if they fail to quickly report and address safety-related defects,” said Transportation Secretary Anthony Foxx in a statement announcing the fine.
The US government has fined GM $35 million for delays in recalling small cars with faulty ignition switches
As a result of the settlement, GM has also agreed to provide NHTSA with access to the results of its internal investigation as well as to speed up its process for determining when to recall vehicles.
“We have learned a great deal from this recall [and] we will emerge from this situation a stronger company” said GM CEO Mary Barra in astatement.
GM was fined for not reporting a problem with ignition switches in its Chevrolet Cobalt and other models.
The faulty switches prevented the airbags from working and have been linked to at least 13 deaths in the US.
The NHTSA received reports in 2007 and in 2010 about the problems with the switches, but each time it “determined it lacked the data necessary to open a formal investigation”.
Both GM and the agency have been criticized by customers for their slow response to investigating safety concerns.
US car manufacturers are required to report safety defects within five days of discovering them.
In April, Mary Barra testified in front of Congress and said she was “deeply sorry” over the company’s handling of the defect.
Last month, GM revealed it had taken a $1.3 billion hit to cover the cost of the recall.
However, GM has asked a judge to ban cases “alleging purely economic damages” due to the recall, and has argued it is not responsible for problems with cars manufactured before 2009, when it was bailed out by the US government.
GM has decided to recall a further 2.7 million vehicles, most of which have brake light defects.
The recall, which affects a number of different models, will cost about $200 million, the carmaker said.
GM has decided to recall a further 2.7 million vehicles, most of which have brake light defects
Last month, General Motors revealed it had taken a $1.3 billion hit to cover the cost of recalling about 2.6 million cars with defective ignition switches.
GM said the latest recall was due to a greater emphasis on safety following the ignition problems.
“We have redoubled our efforts to expedite and resolve current reviews and have identified and analyzed recent vehicle issues which require action,” said GM’s safety chief Jeff Boyer.
The main recall involves 2.44 million Chevrolet Malibu and Malibu Maxx, Pontiac G6 and Saturn Auras models in the US.
GM said the fault could result in brake lights not working when the brakes are applied, or the lights coming on when the brakes are not applied. Cruise control and traction control might also be affected, it said.
The carmaker said it was aware of “several hundred” complaints, 13 crashes and two injuries as a result of the fault.
The other GM recalls include 140,000 Chevrolet Malibus for hydraulic brake booster issues and more than 100,000 Chevrolet Corvettes for faulty head lights.
GM has seen its 2014 Q1 profits hit by a $1.3 billion charge to cover the cost of a huge recall of cars over defective ignition switches.
The faulty switches could turn off the engine, disabling the airbags and have been linked to at least a dozen deaths.
General Motors says it also incurred $300 million in restructuring costs, mostly in Europe.
As a result net income was $125 million, compared with $865 million in the same period last year. Sales came in at $37.4 billion, up from $36.9 billion in 2013.
GM said that of the $1.3 billion recall charges, some $300 million was to cover the cost of courtesy cars.
GM has seen its 2014 Q1 profits hit by a $1.3 billion charge to cover the cost of a huge recall of cars over defective ignition switches (photo Reuters)
“Obviously, the recall campaign charges in the first quarter overshadows the headline results, but if you look underneath that, we had strong performance across the board,” chief financial officer Chuck Stevens said.
It was GM’s worst quarterly performance since it posted a net loss after leaving bankruptcy protection in 2009.
The company had raised vehicle costs during the quarter, which helped boost operating profits by $1.8 billion.
In North America, GM experienced higher sales of its more lucrative versions of its redesigned Chevrolet Silverado and GMC Sierra full-size pickup trucks.
“The performance of our core operations was very strong this quarter, reflecting the positive response of customers to the new vehicles we are bringing to market,” said GM CEO Mary Barra.
“Our focus remains on creating the world’s best vehicles with the highest levels of safety, quality and customer service, while aggressively addressing our business opportunities and challenges globally.”
During 2014 Q1 the company was also hit by another charge of $419 million, “related to changing the exchange rate GM uses for re-measuring the net assets of its Venezuelan subsidiaries”.
GM has asked a US court to bar some lawsuits relating to its recall over faulty ignition switches.
The faulty switches could turn off the engine, disabling the airbags and have been linked to at least a dozen deaths.
The recall was issued earlier this year but GM has admitted some employees knew about the problem as early as 2004.
General Motors has asked the court to ban cases “alleging purely economic damages” due to the recall. It does not affect cases relating to accidents or injury.
The company has been hit by various lawsuits since the recalls began this year.
GM has asked a US court to bar some lawsuits relating to its recall over faulty ignition switches
“The lawsuits that are the subject of this motion, most of which purport to be class actions, are brought by or on behalf of individuals who were not injured as the result of any failure of the ignition switch,” the carmaker said.
GM has so far recalled nearly 2.6 million cars over the issue.
However, it has claimed that the problem affects cars that were manufactured in the years preceding its bankruptcy and subsequent bailout by the US government in 2009.
It said the “new GM” – referring to the post bailout firm – had committed to replacing the defective ignition switches as a result of the recall.
“New GM’s recall covenant does not create a basis for the plaintiffs to sue new GM for economic damages relating to a vehicle or part sold by old GM,” the company was quoted as saying in its filing by the Reuters news agency.
However, the company acknowledged in a statement that “it has civic and legal obligations relating to injuries that may relate to recalled vehicles”, and that it was looking at what options may be available to it to deal with those obligations.
Some of those suing the carmaker have alleged the firm hid the information about the problem from the US government while it was being bailed out.
They claim that as result of concealing this information GM was not entitled to protection from liability arising from the issue.
“GM’s argument suggests that the US Government would have agreed to extend $40bn of taxpayer money for GM’s restructuring, and supported shielding it from liability through the sale order, had it known of GM’s intentional misconduct,” Reuters quoted the plaintiffs as saying in their lawsuit.
GM is already facing an inquiry from US authorities over its handling of the issue.
General Motors is accused by US Congress of a potentially criminal cover-up of its defective ignition switches.
Lawmakers on Capitol Hill fumed at the lack of answers from GM’s new CEO Mary Barra during a second day of hearings Wednesday into why the carmaker waited a decade to recall cars with the deadly flaw.
Members of a Senate subcommittee also said GM should tell owners of the 2.6 million cars being recalled to stop driving them until they are repaired.
However, Mary Barra gave assurances that the cars, mainly Chevrolet Cobalts and Saturn Ions, are safe to use while owners wait for the replacement part, saying she would let her own son get behind the wheel if he took certain precautions.
GM has linked the switch to 13 deaths and dozens of accidents. Others, including relatives of some victims, have a higher count of fatalities.
The automaker has said the ignition switch can move from the “run” position to the “accessory” position because of weight on the key chain. That causes the engine to shut off, disabling power steering, power brakes and the front air bags.
As she did Tuesday at a House hearing, Mary Barra said many of the answers Congress is seeking will come out in an internal GM investigation that should be completed in 45 to 60 days. She also said she was unaware of certain details about GM’s handling of the problem – an assertion that frustrated some of the senators.
“You don’t know anything about anything,” Senator Barbara Boxer, D-California, said.
Image source Wikimedia
Mary Barra also tried to assure lawmakers that GM is now more focused on safety and the consumer. Few sounded convinced.
Senators aggressively questioned Mary Barra about how GM approved a replacement switch in 2006 but never changed the part number. Failing to change the number makes the part harder to track. In this case, anyone investigating the cars wouldn’t know why earlier switches were failing at a higher rate than later ones.
While Mary Barra called the failure to change the part number “unacceptable,” several members of the panel implied that it was done intentionally by a person or group within the company.
“I don’t see this as anything but criminal,” said Senator Kelly Ayotte, R-New Hampshire, a former prosecutor.
Senator Richard Blumenthal, D-Connecticut, who is also a former prosecutor, told Mary Barra that the more he learns about GM, “the more convinced I am that GM has a real exposure to criminal liability”.
The Justice Department is conducting a criminal investigation of GM’s handling of the recall. The GM CEO promised the company will cooperate.
Mary Barra said the company has not yet fired any employees in connection with the recall. But she said if inappropriate decisions were made, GM will take action, including firing those involved.
As she began her testimony, Mary Barra faced an angry and skeptical Senator Claire McCaskill, D-Missouri – the head of the subcommittee – who recounted the story of a woman who died in an accident involving a faulty switch.
Claire McCaskill said GM had “a corporate culture that chose to conceal rather than disclose.”
She also dismissed Mary Barra’s claim that there is a new culture at GM. She said that when emerging from bankruptcy in 2009, GM had ample time to recall cars with the faulty switch.
GM did not begin recalling the vehicles until February.
Mary Barra said GM has already provided 13,000 loaner cars to drivers who are concerned. But she said the company’s testing on different types of roads shows the cars are safe as long as there is nothing but the ignition key on the key chain.
In 2015, GM entering a deferred prosecution agreement with the New York Office.
In September, 2018, U. S. District Judge Alison Nathan dismissed the criminal cases against General Motors. New York prosecutors told Nathan the car maker paid over $2.6 billion in penalties, fines and settlements.
GM still faces pending civil lawsuits, but the government has finished monitoring the company as per bringing state or Federal charges.
General Motors is recalling 1.3 million more cars for power steering loss.
The latest recall includes the 2004-2006 Pontiac G6, Chevrolet Malibu, and Malibu Maxx, 2004-2007 Saturn Ion, 2008-2009 Chevrolet Malibu, Pontiac G6 and Saturn Aura, 2009-2010 Chevrolet HHR (non-turbo models) and 2010 Chevrolet Cobalt.
At issue is a potential loss of power steering. GM has been involved with this particular problem since the National Highway Traffic Safety Administration (NHTSA) began an investigation in December 2010, which forced GM to disclose it had received nearly 3,500 complaints from Ion owners.
Since the start of February, GM has recalled more than 6 million cars and is now facing the wrath of multiple federal investigations and lawsuits.
GM is recalling 1.3 million more cars for power steering loss
The NHTSA did not provide recall documents explaining the problem in greater detail. GM said dealers would replace one or a combination of parts, including the power steering motor, steering column and the motor control unit. Owners who paid for these repairs earlier will be reimbursed by GM. The carmaker said it would also give out lifetime warranties for the power steering motor for other non-recalled models, including the 2006-2009 Chevrolet HHR and 2003 Saturn Ion.
On Friday, GM recalled more than 490,000 pickups and SUVs, including the 2014 Chevrolet Silverado and GMC Sierra, as well as the 2015 Chevrolet Tahoe, Suburban, GMC Yukon and Yukon XL. On those vehicles, the transmission oil cooler could leak. GM also recalled more than 170,000 Chevrolet Cruze sedans from 2013-2014 due to half-shafts on the front axle that can fail. Still on the same day, GM recalled an additional 971,000 cars for faulty ignition switches that had previously covered 1.62 million recalled cars in February. Two weeks earlier, GM recalled 1.54 million cars for faulty airbags, brake boosters and non-compliant dashboard material.
GM still has several more vehicle investigations pending within the NHTSA. One involves 1.77 million full-size SUVs and pickup trucks from 1999 to 2003 for brake line corrosion that can lead to increased stopping distances. GM and the NHTSA also received more than 1,300 complaints for brake light malfunctions on 2005-2008 Pontiac G6 models, which were not included in last year’s recall of just under 10,000 cars in the US. None of these investigations have been escalated to a recall either by the NHTSA or GM.
GM CEO Mary Barra is scheduled to testify Tuesday before the US House Energy and Commerce Committee on the ignition switch recalls.
General Motors is recalling 824,000 more cars over defective ignition switches that have caused some engines to shut off and to disable airbags.
GM said it was recalling a variety of models made between 2008 and 2011, in addition to 1.6 million cars made before 2007 that were recalled last month.
The carmaker said it was unaware of deaths caused by the flaw in the 2008-2011 models.
But the problem has been linked to between 12 and 303 deaths in crashes.
Separately on Friday, GM halted sales of some models of the popular Chevrolet Cruze car.
General Motors is recalling 824,000 more cars over defective ignition switches
GM did not give details of the reasons behind its move, which affects models with 1.4 litre turbo diesel engines, nor did it say whether the sales halt affects markets outside the US.
The recall of the 2008-2011 models announced on Friday adds to the 1.6 million cars the company has already recalled over reports of the faulty ignition switch.
“We are taking no chances with safety,” GM chief executive Mary Barra said in the company’s announcement.
“Trying to locate several thousand switches in a population of 2.2 million vehicles and distributed to thousands of retailers isn’t practical. Out of an abundance of caution, we are recalling the rest of the model years.”
The models affected by Friday’s recall are the Chevrolet Cobalt and HHR, Pontiac G5 and Solstice, and the Saturn Ion and Sky.
At issue is a flaw in the manufacture of the ignition switch that causes the key to shift on its own from the “run” position to the “accessory” or “off position”, even while the car is driving at full speed on the road.
That can shut off the car’s engine and disable the airbags, with potentially disastrous consequences.
Until the cars can be recalled and the ignition switches replaced, GM recommends customers remove all items, including the key fob, from their key rings, using only the vehicle key in the ignition switch.
GM has admitted that some employees knew about the issue as early as 2004.
The carmaker has linked the issue to 12 deaths. But a report by the Center for Auto Safety has put the number at 303 – a figure that GM has disputed.
The delay in recalling the vehicles has triggered two congressional enquiries against General Motors.
Mary Barra is scheduled to testify to both chambers of Congress next week on the issue and address why it did not recall vehicles earlier.
General Motors (GM) expects to spend nearly $300 million in Q1 2014 to repair vehicles affected by its recent recalls.
GM set aside the amount on Monday as it announced three separate recalls affecting nearly 1.5 million vehicles.
That follows the 1.6 million vehicles it called back last month over faulty ignition switches.
GM announced three separate recalls affecting nearly 1.5 million cars
GM is facing an investigation over its handling of the recall over the faulty switches which can disable airbags.
The recall announced on Monday affects the following models:
1.18 million vehicles, including 2008 – 2013 Buick Enclave and GMC Acadia, 2009 – 2013 Chevrolet Traverse and 2008 – 2010 Saturn Outlook, over problems with deployment of side airbags.
303,000 Chevrolet Express and GMC Savana from the 2009 – 2014 model years with gross vehicle weights of 10,000 pounds or less as they do not comply with a head impact requirement for unrestrained occupants.
63,900 Cadillac XTS full-size sedan from the 2013 and 2014 model years to fix a problem that could lead to overheating, melting of plastic components and a possible engine compartment fire.
GM is under pressure over its handling of a recall earlier this year that involved faulty ignition switches which could turn off the engine and disable airbags.
General Motors (GM) announced it will resume dividend payments, capping a remarkable turnaround since its 2009 bailout by the US government.
GM will pay a dividend of 30 cents per share, the first since July 2008.
The company filed for bankruptcy at the height of the global financial crisis and was rescued after the government pumped in billions of dollars.
But the firm has since seen a strong recovery, led by a jump in sales in key markets such as the US and China.
On Tuesday, GM said it sold 9.71 million vehicles in 2013, an increase of 4% on the year before.
GM announced it will resume dividend payments, capping a remarkable turnaround since its 2009 bailout by the US government
“This return to shareholders is consistent with our capital priorities, and is an important signal of confidence in our plans for a continuing profitable future,” Dan Ammann, GM’s chief financial officer, said in a statement.
GM, like other global car makers, has benefited from the ongoing recovery in the global car market.
Car sales in key markets such as China and US have been rising – recovering from the slump seen in the years following the global financial crisis.
According to data released over the past few days, auto sales in China, the world’s biggest car market, jumped 14% in 2013 to 21.98 million vehicles.
Sales in the US – the world’s second-biggest market – are also expected to have hit 15.6 million units last year – up from 10.4 million units 2009.
Analysts said that GM had been able to tap into the growth in both the emerging as well as developed economies, which had helped boost its recovery.
General Motors has promoted product development chief Mary Barra to the post of CEO.
Mary Barra replaces Daniel Akerson, and is the first woman to run a US carmaker.
Daniel Akerson, who is also currently chairman of GM, will leave both of his posts in mid-January. His wife has recently been diagnosed with advanced cancer.
Earlier this week the US government sold its remaining shares in GM, the world’s second biggest carmaker.
General Motors has promoted product development chief Mary Barra to the post of CEO
Overall, GM lost around $10 billion on its bailout of the carmaker in the aftermath of the financial crisis in 2008 and 2009.
The US Treasury spent $49.5 billion bailing out GM, and took a 61% stake in the company.
Mary Barra has been in charge of design and engineering, and before that was head of human resources at the company.
She joined GM as a student in 1980.
In a message to the company’s employees on Tuesday, Daniel Akerson said: “I will leave with great satisfaction in what we have accomplished, great optimism over what is ahead and great pride that we are restoring General Motors as America’s standard bearer in the global auto industry.”
Current CFO, Dan Ammann, was named GM president. He will also take responsibility for the Cadillac and Chevrolet brands.
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