GM second-quarter earnings tumble after $1.2B recall charge

General Motors Co. (NYSE: GM) reported net income of $200 million in the second quarter after a $1.2 billion charge for the cost of recalls in the quarter.

That's down from $1.2 billion a year ago, when the company didn't have a huge recall expense, according to USA Today.

GM also said it expects to spend $400 million to compensate victims of its defective ignition switches — the first time GM has forecast what that cost will be.

Revenue was roughly flat at $39.6 billion compared to a year ago.

Read more from USA Today.