It wasn’t so long ago we pointed out some troubles at Ford (NYSE:F), where an investor for a new plant in Europe backed out. Now, there’s trouble brewing at General Motors (NYSE:GM), and it has nothing to do with the ongoing UAW strike. This time, it’s trouble with airbags, among other things, and GM stock is down over 2% in Thursday afternoon’s trading.
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It’s not just trouble with airbags, either; it’s trouble with a lot of airbags. Like around 20 million airbags, according to reports. The National Highway Traffic Safety Administration is already looking into the matter and wants to see the vehicles in question recalled. The issue comes down to a set of inflators manufactured by ARC Automotive, and the inflators in question may actually explode in a collision. That, in turn, could send what amounts to shrapnel firing into passengers. The NHTSA asked ARC to voluntarily stage a recall on said inflators, but ARC passed, and now the inflators are in the cars.
Is GM a Good Stock to Buy?
As for General Motors stock, analysts are still hanging in there. A combination of eight Buy ratings, five Holds, and two Sells makes General Motors stock a Moderate Buy. Further, General Motors stock offers investors access to 62.6% upside potential thanks to its average price target of $49.13 per share.