This letter is being sent today to GM CEO Mary Barra:
We ask that General Motors (the Company) recall Saturn Ions for the model years 2004 through 2007 without further delay.
These automobiles endanger the lives and safety of their drivers and passengers due to a loss of power steering, a serious problem of which the Company has been aware for several years.
According to a summary of an ongoing investigation by the National Highway Traffic Safety Administration (NHTSA):
…GM indicated that the EPS (electric power steering) system used in the subject vehicles was the same as that used in the MY2005 to 2010 Chevrolet Cobalt and Pontiac G5. In March 2010, GM recalled approximately 1.05 million Chevrolet Cobalt and Pontiac G5 vehicles (NHTSA recall no. 10V-073) to correct a defect with the EPS assist motor.
Although it affects many of the same vehicles, the steering loss is a problem … Read More ➡
Never underestimate the ability of Congress to address a problem through symbolic action. Over the weekend, Sens. Tim Johnson, D-S.D., and Mike Crapo, R-Idaho, introduced a bill, the Housing Finance Reform and Taxpayer Protection Act of 2014, to phase out secondary mortgage lending corporations Fannie Mae and Freddie Mac over a five-year period and replace them with a new insurance-based system. The 442-page draft bill builds on a plan unveiled last June by Sens. Bob Corker, R-Tenn., and Mark Warner, D-Va. Like its predecessor, this bill rests on the faulty premise that the main problem is these companies’ continued existence. Lawmakers instead should allow them to operate, but without a federal lifeline. Significantly, the new bill makes no mention of the junior preferred and common Fannie Mae and Freddie Mac shareholders whose earnings are being seized in perpetuity by the U.S. Treasury.
Federal National Mortgage Association (“Fannie Mae”) and … Read More ➡
The New York Times hinted that the 11 year death toll for victims who drove defective General Motors’ vehicles (that are just now being recalled) may rise from the current 12 confirmed fatalities. The Times reports, “Since 2003, GM has reported at least 78 deaths and 1,581 injuries involving the now-recalled cars, according to a review of agency records.”
It is not clear how many of the accidents involving one of the 1.6 million now-recalled vehicles were caused by the defect. The article does state that “the records mention potentially defective components” and “regulators appear to have overlooked disturbing complaints of engine shutdowns.”
The basis of the report is a new chronology of events regarding the recall. The chronology also gives evidence that now-GM CEO Mary Barra was likely aware of the problem in 2011. GM’s response to the escalating scandal was to offer drivers of its defective vehicles loaner … Read More ➡
In today’s New York Times, Frances Robles provides new details of the extensive political giving of two wealthy Ecuadoran brothers, Roberto and William Isaias, who are wanted in their home country for allegedly looting a bank. From the Times:
“There is a certain mercenary aura on the Hill when it comes to overlap of fund-raising from wealthy individuals with problems,” said Ken Boehm, chairman of the National Legal and Policy Center, a research group. “The key elements are all there: They are wealthy and have problems that are solved by the discretionary judgment of someone in the administration. They have tons of money and are willing to write checks all over the place.”
In January, a New York TV station first reported that the criminal investigation of Senator Robert Menendez had been widened to include Menendez relationship with the brothers, who are seeking to stay in the … Read More ➡
General Motors continues to double down on plug-in electric vehicles, now offering the Cadillac ELR, which is a gussied up version of the Chevy Volt at twice the price. The latest Cadillac ELR ad has stirred up a lot of debate regarding its pro-American capitalism message as General Motors spent roughly $100,000 for each of the commercials that it ran during the Sochi Olympics.
Although the commercial garnered much attention, the heavy ad spending resulted in just 58 of the tax-subsidized (each affluent buyer gets a $7,500 federal tax credit) Cadillac ELRs being sold in February, three months into the car’s launch. The debate about the ELR ad seems to be omitting the most obvious question which is, why is GM wasting shareholder’s money advertising a car that has no chance of having widespread market appeal?
I’m sure GM apologists will have some explanation for the wasted marketing dollars that … Read More ➡
Former head of the National Highway Traffic Safety Administration (NHTSA), Joan Claybrook, has weighed in on the deadly delay by General Motors on a recall for a defect that is alleged to have resulted in 13 deaths and 33 accidents. Ms. Claybrook appeared on the Cavuto Show on Fox Business where she blasted both GM and NHTSA for waiting 10 years to recall the defective models and went as far as saying that there should be criminal charges brought against GM by the Justice Department.
Congress was questioned for its response (or lack thereof) as Cavuto started the segment by comparing the lack of hearings on the recall delay to the quick response that brought Toyota to task for its unintended acceleration problems. It’s hard to disagree that Congress has been unusually silent on the matter, perhaps as a result of being concerned with the risks of criticizing the politically-powerful … Read More ➡
The National Highway Traffic Safety Administration (NHTSA) is opening an investigation into General Motors’ response to an ignition-switch defect that has been linked to 13 deaths, prompting a recall of 1.6 million vehicles. As I have previously reported, the ignition-switch problem has been known for years. What took NHTSA so long?
NHTSA is an executive branch agency, part of the Transportation Department. According to its website, NHTSA “is dedicated to achieving the highest standards of excellence in motor vehicle and highway safety. It works daily [emphasis added] to help prevent crashes and their attendant costs, both human and financial.”
Five years ago, when Toyota delayed a recall for vehicles with unintended acceleration problems that allegedly cost some motorists their lives, NHTSA was a tiger. It eventually fined Toyota over $65 million for not recalling its vehicles sooner. TV networks (particularly business news networks) gave the story much air time, as … Read More ➡
Remember President Obama promising “If you like your plan, you can keep your plan?” PolitiFact.com has identified 37 instances of Obama or another top administration official making this claim, or something close to it.
Today we received this email from United HealthCare informing us that our health plan that we like “will no longer be offered:”
… Read More ➡
New evidence is surfacing that General Motors has known for years about the deadly defects in its vehicles (as I suggested here last week) that are just now being recalled. The defects have led to the deaths of at least six people and are the basis of an ongoing lawsuit against GM.
The deadly recall delay by GM has garnered the attention of Mainstream Media as usually GM-friendly sources like USA Today, The New York Times, CNN Money and even CBS Evening News have rightfully decided that the accusations of deplorable behavior by GM deserve to be shared with the public. It is time for GM to explain its handling of the delayed recall that only came after a lawsuit settlement with one of the victims.
It appears that there is an ongoing lawsuit relating to GM’s deadly recall delay, as well as the settled lawsuit … Read More ➡
Last week bankrupt Fisker Automotive was sold to a Chinese company, and Tesla Motors experienced another fire in one of its Model S electric cars.
The Obama administration Green-stimulus losing streak continues. The two luxury electric automaking companies, where the Department of Energy deemed taxpayer “investments” should be placed at risk, don’t inspire confidence.
As NLPC has documented extensively, Fisker burned through more than $1.4 billion, which included $193 million loaned from U.S. taxpayers and millions more from state and local governments. After selling the scraps of its loan to a Chinese businessman, Richard Li, DOE said the government would realize a $139 million loss. Now another Chinese-based company, Wanxiang Group, won the rights to Fisker’s assets with a $149.2 offer at the bankruptcy auction. U.S. taxpayers are none the better for it.
Wanxiang – China’s largest auto parts manufacturer – was also the company … Read More ➡