Mark Modica's blog

How GM Manipulated June Sales Figures with Dealership Incentives

chart downThe Associated Press gives evidence today to how desperate General Motors is to give the appearance that the company is firing on all cylinders. GM pulled out all the stops to ensure that June sales would not disappoint when sales were slowing as a result of the company's loss of credibility during its seemingly never-ending recall saga.

At mid-June, sales for the month at GM were lagging the previous year's. The political minds at GM could not have this, and according to the piece:

GM Debt Climbs to Over $40 Billion, Earnings Disappoint

General Motors reported earnings today for the 2nd quarter of 2014. The early prognosis is not good with share price falling after the report. While it is difficult for the Mom and Pop investor to sort through GM's myriad of charges, special items and various smoke and mirrors, there are some key take-aways that give a glimpse of GM's financial health. Primarily, debt continues to grow at the company, now exceeding $40 billion while earnings are propped up by special items.

Why Hasn’t NHTSA Expanded GM Brake Line Corrosion Investigation?

FriedmanIt has now been over two months since we requested that General Motors recall vehicles that are prone to brake line corrosion. The vehicles in question, GM truck model years 1999 through 2003, have been under investigation by the National Highway Traffic Safety Administration (NHTSA) since 2010. The government agency has done nothing noteworthy regarding the existing GM safety concern over the four year span of the investigation.

Is GM Using Recalls to Drive Showroom Traffic?

GM recallIs General Motors trying to make lemonade out of lemons? In the case of the company's recent string of lemon recalls, there seems to be a strategy to increase showroom traffic by issuing recalls for only those vehicles which do not require high costs to repair. GM CEO, Mary Barra, gave a hint at this strategy during last quarter's earnings conference call.

Subaru Recall Weakens GM Defense that Brake Line Rust is Maintenance Issue

Subaru last week announced a second recall for vehicles which are prone to brake line corrosion in "salt belt" states. This latest recall follows a 2013 recall for the same issue, which can cause brake failure from burst brake lines due to rust. As Subaru does the right thing by consumers and motorists regarding the safety concern, General Motors continues to claim that brake line rust is a normal maintenance issue and refuses to recall its vehicles with the same problem.

NHTSA Lists 1,895 Complaints for GM Brake Lines, GM Denies Problem

bake line rustGeneral Motors continues to deny that there is a problem with rusting brake lines on its vehicles, as noted here yesterday. GM's new Vice President of Global Safety, Jeffrey Boyer, claims that brake line rust "is a maintenance issue that affects the entire automotive industry." However, a search of the National Highway Traffic Safety Administration's (NHTSA) website shows that GM vehicles have about ten times the complaints for brake lines than Ford, Toyota and Honda combined!

Subaru Recalled Vehicles With Brake Line Corrosion; GM Should, Too

General Motors has still yet to acknowledge that it has a problem with brake lines that are subject to rust on many of its vehicles. Model year 1999 through 2003 trucks, primarily the Chevy Silverado and GMC Sierra, are currently under investigation by the National Highway Traffic Safety Administration (NHTSA) and multiple complaints have come in for newer models up to model year 2007. It has now been about a month since we notified GM and NHTSA of the issue and requested a recall of vehicles that are putting motorists in harm's way. I now suggest that GM look at how Subaru handled a similar issue with its vehicles so that this serious safety issue gets resolved.

GM CEO Mary Barra Ignores Brake Corrosion Safety Issue

Barra photoWell, it looks like New GM is not much different than Old GM when it comes to addressing serious safety issues on its vehicles. The Associated Press reports that General Motors CEO, Mary Barra, claims that GM has not turned up any other major safety issues. I guess Ms. Barra feels that two tons of steel traveling at high speeds with brake lines that can burst at any moment is nothing to be concerned about. The continued denial by GM that there is no safety issue with their trucks that are prone to brake line corrosion proves that the company has a long way to go before they change a culture that puts profits ahead of motorists' safety.

GM Internal Investigation Does Not Absolve Management of Criminality

Brooke's carThe long-awaited General Motors recall report, which was compiled by attorneys with longstanding and lucrative ties to the company, has been released with few surprises. GM-hired attorneys claim that no high-level executives at the company were responsible for the deadly ignition switch recall delay that cost at least 13 people their lives. The report does nothing to vindicate GM. The company's management must be investigated by the Justice Department.

Must Someone Die Before GM Recalls Trucks with Rusting Brake Lines?

Mary BarraIt has now been more than two weeks since we sent a letter to General Motors CEO, Mary Barra, requesting a recall for vehicles (primarily Chevy Silverados and GMC Sierras) that have thousands of complaints regarding brake line corrosion. The National Highway Traffic Safety Administration (NHTSA) has had an ongoing investigation for GM truck model years 1999 through 2003. Considering that new research has discovered newer model trucks with the same problem, just what are GM and NHTSA waiting for to recall these dangerous vehicles?

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