The news about GM this year has been grim. We’re not even through 2014, and so far GM has had more than 60 recalls. The total cost will likely top $1 billion and involve more than 26 million vehicles.
And yet, GM just paid its shareholders a quarterly dividend in September. Despite everything, GM’s stock valuation is holding relatively steady.
How can a company that has been in the news all year for extremely negative reasons, continue to be valued on the stock market? Partly it’s a matter of brand management.