Money Minute: GM CEO Hits Repair Mode; Next-Gen iPhone On the Way?

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General Motors' new chief tries to repair the automaker's damaged reputation.

After more than a decade of ducking evidence about a serious safety problem with more than a million GM (GM) cars, the company's recently named chief executive is trying to get out in front of the issue. Mary Barra says "something went wrong" with GM's process and as a result, "terrible things happened." She says repairs on the 1.6 million cars with an ignition problem should begin in three to four weeks. Barra also says GM is changing the way it handles future recalls. And it's starting be recalling an additional 1 million vehicles for a variety of other problems.

Get ready for a slew of stories over next few months about the next generation iPhone. Apple (AAPL) hasn't yet announced that there will even be an iPhone 6, but that hasn't stopped the speculation. A prominent analyst from ISI Group says the first thing you'll notice is the size.
He expects two new models this year, one with a 5½ inch screen. The analyst says iPhone users are currently suffering from "large screen envy" because of the jumbo size of some competing models from Samsung and others. As for Apple's stock, the ISI analyst has a "strong buy" recommendation with a $600 dollar price target. Apple closed Monday at $527 a share.

Here on Wall Street, the Dow Jones industrial average (^DJI) jumped 181 points Monday, recouping about half of last week's big loss. The Nasdaq composite (^IXIC) gained 34 points and the Standard & Poor's 500 index (^GPSC) rose 17.

Walmart Stores (WMT) is making a big move into used video games. Beginning next week, the retail giant will pay for your old games, and later this year start selling used games. Trade-ins earn store credit that can be used for any products sold at Walmart or Sam's Club. The move is seen as a big threat to GameStop (GME), which is leading retailer of both new and used video games. And it's a big business. Last year, used game sales in the U.S. totaled $1.6 billion.

-Produced by Drew Trachtenberg.


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art6111

Just another Obama "success story". He's doing as well with foreign relations as he is with the economy. I hope the next election we pick somebody competent!

March 18 2014 at 3:48 PM Report abuse rate up rate down Reply
tmlbtb

Why isn't the previous CEO brought up on criminal charges? Why is it, that CEO's aren't responsible for their companies actions, but are the highest paid employees in the company? Just what do they do? Other than, usually making bad decisions?

March 18 2014 at 12:50 PM Report abuse rate up rate down Reply
TINKDAY

To many corporations and business are run by financial people who look for the short term return on investment and to hell with long term planing that builds solid companies that do not need bankruptcy every few years or be bought out by raiders that buy out companies and than destroy them for quick profit. The state of most of our corporations, pretty bad, we have lost our leadership in many fields and that trend continues as does the overall condition of our economy, that is hidden by our government, lies on inflation, real job loss,cost of bail out that continues even now, crime rate, etc. Now we are trying to develope a national health care plan, by buying it from private insurance companies, who have already announced, premium increases for next year. You cannot buy health insurance on a large scale, where millions of people will have their cost subsidised by the tax payer, when insurance costs are created by private companies making at least 40 % or more. We need single payer system that requires bides on drugs and health care and most important we need to put a stop to this self serving pocket lining corruption that is running our government and to many of our corporations, especially our insurance companies and the people that run our financial instituions, banks, wall street etc.

March 18 2014 at 11:56 AM Report abuse -1 rate up rate down Reply
chuckhalper

IMO---part of the problem is the way they are organized. Recalls need the focus of field engineering, parts, field service, government relations and compliance, technical support, consumer relations... at GM they are all in different departments.And, look at their organization chart and you find no executive singularly in charge of a department called "Service" .They have reorganized the aftersales service function so many times over the years,using spurrious theories, there is no one is in an oversight position on the ENTIRE service function. It should be no surprise that they bungled it.....and will probably drop the ball again in the future for the same reason.

March 18 2014 at 11:28 AM Report abuse rate up rate down Reply
velville

Re: GM-----"Management" makes horrible decisions, and now all the Brands and the "worker-bees" suffer.
IMO---too much "buddy-buddy" input when selecting corporate upper and middle management. The "good-old boys club" screws-up by not being responsible. Now the new Boss ---she has to make good on what they ruined.

March 18 2014 at 9:15 AM Report abuse +1 rate up rate down Reply
1 reply to velville's comment
pickaduncetorunthecountry44

She better play Good ole boy Ball, or the board could still fire her butt.

March 18 2014 at 12:15 PM Report abuse -1 rate up rate down Reply