Investors of General Motors Co. (GM) remained positive despite the recall crisis that resulted to a $3 billion-drop in its shareholders' value in just roughly a month.
In March, the New York Times reported that the carmaker, regardless of numerous complaints and reports about dangerous sudden car engine shutdowns and faulty airbags, failed to act on the issues as there were not enough evidences to start an investigation. Accidents that resulted from the malfunction have caused disabilities and even deaths of the passengers in the affected automobile.
Pictures of the dead victims were displayed and their families were watching from the outside while GM CEO Mary Barra was questioned during a congressional panel investigation a few days ago.
During the investigation, Marra apologized for the deaths of victims in the tragedies brought by the ignition switch malfunction. She also assured that they will conduct a thorough and aggressive investigation on why the incidents were not looked into despite knowledge about it as early as 2001.
Regardless of the issues that the company faces right now, its investors expressed confidence that the company will surpass this.
"Why in the world they didn't deal with it back then is beyond me, but it seems to me now that they're doing the best job they can given the circumstances," said Granite Investment Advisors CIO Scott Schermerhorn to Businessweek. The Concord, New Hampshire-based company manages $600 million and owns 464,469 GM shares as of 2013.
Matthew Moran, a fund manager at River Road Asset Management LLC, on the other hand, told Businessweek, "It's a little silly that it's traded off to the extent that it has," referring to the 7.6 percent decrease in GM shares. "The new CEO is doing a fine job, and I'm very optimistic about her abilities to lead this company."
