You would think America's largest automaker, General Motors, would be a lemon for both investors and consumers. It's announced 54 recalls that have impacted nearly 26 million vehicles in the U.S. and wrote down $2.5 billion in losses because of those recalls in just six months.
Yet compared to last June, sales have climbed 1 percent and the stock has seen double-digit growth. What's fueling the surge at the height of GM's recall crisis?
"If you think about how far car technology, safety features and infotainment has come in the past 5 to 10 years, it's definitely head and shoulders above the old product," explained Edmunds.com Senior Analyst Jessica Caldwell. "I think that some of these people that are coming in for the recalls are actually leaving with new cars and that has inevitability helped all of GM's brands."
GM is working to repair its image after it became public that at least 13 deaths were linked to its cars' faulty ignition switches.