It 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.
NHTSA has also proven its ineffectiveness when it comes to safeguarding American motorists by ignoring multiple complaints for newer model GM vehicles. Why hasn’t NHTSA expanded the GM brake line investigation to include model years 2004 through 2007, which also have hundreds of complaints involving failed braking as a result of brake line rust?
Owners of GM vehicles with corroded brake lines have been frustratingly trying to bring to light an issue which plagues GM vehicles more so than any other manufacturer.… Read More ➡
On Thursday, July 17, General Motors CEO Mary Barra will be back as a witness on Capitol Hill, this time before the Senate Subcommittee on Consumer Protection, Product Safety and Insurance.
Senator Claire McCaskill (D-MO), who has been an outspoken critic of GM’s response to the deadly ignition switch defect, chairs the Subcommittee. Indeed, the hearing is titled, “Examining Accountability and Corporate Culture in Wake of the GM Recalls.” Another subcommittee member, Senator Richard Blumenthal (D-CT), has been even more outspoken. Both deserve credit for seeking to make GM accountable, especially since some members on both House and Senate committees have pulled their punches on Barra and GM.
The hearing is expected to focus on the deadly ignition switch fiasco. It is imperative, however, that McCaskill and Blumenthal press Barra on a separate issue, the necessity of a recall of pickups and SUVs with a brake corrosion defect. On May … Read More ➡
NLPC Associate Fellow Fred N. Sauer, in photo, filed a lawsuit on June 6 against the Missouri Public Service Commission to make it disclose what is happening to all the money being paid in artificially-high renewable electricity prices. The suit is an outgrowth of his 2013 Special Report titled, The Carnahan Wind Deal: Crony Capitalism is Missouri.
Here’s the background on the lawsuit as explained by Fred:
On May 4, 2008, Missourians For Cleaner, Cheaper Energy filed a petition with the Missouri Secretary of State, Robin Carnahan, to put Proposition C, the Clean Energy Initiative on the November 2008 ballot in Missouri. This proposition created a renewable electricity standard in the state. The standard requires utility companies to gradually increase their usage of renewable energy annually until 15% of the energy used in the state is renewable.
This proposition does not result in a trivial sum of money. In … Read More ➡
Should perpetuating racial grievance be the defining mission of a U.S. Attorney General? Eric Holder, who has held the office for the past five and a half years, really believes it is – and acts accordingly. A new book, Obama’s Enforcer: Eric Holder’s Justice Department (Broadside), presents a strong case for removing Holder from office as a corrective to his many abuses of power related to racial and other issues. In 256 pages, authors John Fund and Hans von Spakovsky pull no punches in revealing how Holder and other department officials routinely have subordinated rule of law to radical politics, all the while stonewalling Congress and punishing internal dissenters. They also, properly, point a finger at Holder’s boss, President Obama.
There is an old saying in the world of bureaucracy: “Personnel is policy.” This is certainly true of the U.S. Department of Justice (DOJ), a $27 billion cabinet-level agency with … Read More ➡
Is 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.
Following is an excerpt from a transcript of GM’s April conference call Q & A session:
Adam Jonas – Morgan Stanley
Thanks. Good morning, everybody. First question is a two-part question. First, on the recall, 7 million units (recalled) obviously creates an enormous amount of showroom traffic and an opportunity to convert that traffic into new sales. So could you outline, perhaps, how successful have you been so far in getting folks coming in and holding the hand and obviously helping them with a real issue, but also
… Read More ➡
Senator Robert Menendez (D-NJ) is claiming that Cuban intelligence operatives may have planted reports that he patronized underage prostitutes. According to a Washington Post story on Monday by Carol Leonnig and Manuel Roig-Franzia:
The alleged Cuba connection was laid out in an intelligence report provided last year to U.S. government officials and sent by secure cable to the FBI’s counterintelligence division, according to the former official and a second person with close ties to Menendez who had been briefed on the matter.
The Post apparently did not have a copy of the “report,” nor could it verify its existence. To us, this whole thing sounds about as mysterious and vague as the original prostitution reports, but it really doesn’t matter. Menendez faces far more serious allegations.
Something very damaging, perhaps the indictment of his top donor Dr. Salomon Melgen, may be about to break. It is obvious what Menendez is … Read More ➡
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.
The Subaru recall weakens GM’s defense that rusting brake lines do not need to be addressed by manufacturers and owners should bear the costs and responsibility to replace rusted brake lines. As with GM’s models, the Subaru models affected are prone to rust after six or seven winters. In the case of GM models, the company has far more complaints of brake line rust than any other manufacturer, as … Read More ➡
On May 13, we asked GM to recall Chevy Silverados and other pickups and SUVs with a brake line corrosion problem. GM responded by claiming that it was a “maintenance issue” and therefore not a reason to order a recall.
The media is finally paying attention to the issue. Yesterday, Bloomberg ran a story titled “GM’s Rusting Brake Lines Don’t Make the Cut in Record Recalls,” by Jeff Plungis and Jeff Green. From the piece:
“They seem to be doing a lot of recalls, but on closer investigation, you find they’re more hesitant to do the recalls that cost more money,” said Mark Modica, an associate fellow with the National Legal and Policy Center, who was a onetime GM bondholder and a former manager at a Saturn dealership in Pennsylvania. “GM’s response has been quite callous.”
The New York Times also covered the issue yesterday in an article titled “G.M. … Read More ➡
General 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!
NHTSA has a tool to allow searches for complaints by keyword. While there is an ongoing NHTSA investigation on model year 1999 to 2003 GM trucks, the investigation has never been expanded to include newer models which also seem to be plagued by brake line corrosion which leads to brake failure. Here are the figures from a NHTSA complaint search using the keywords “brake line.”
Chevrolet models, model years 1999-2008: 1,372 complaints.
… Read More ➡
NLPC has extensively documented how Tesla Motors has taken advantage of market distortions to reap revenues – including government mandates, subsidies, and taxpayer support – not the least of which have been so-called “zero emission credits” from the state of California. But much of the revenue Tesla enjoyed last year – which often meant the difference between profit and loss – was credited based upon theoretical technological capabilities and not ones actually put into practice.
CEO Elon Musk has also relied on accounting gimmicks to enhance his bottom line over the last 18 months, during which a couple of quarterly earnings reports even showed a profit – albeit under non-Generally Accepted Accounting Principles. Those handsome returns were achieved in part thanks to a scheme administered under the California Air Resources Board in which additional zero emission credits are awarded to vehicle manufacturers based upon the ability for models to “fast … Read More ➡