Government Motors

Survey: Consumers Distrust GM; Oppose Liability Exemption

SurveyToday we released the results of a new survey that reveals the majority of consumers believe General Motors deliberately tried to cover up the deadly recall delay of 1.6 million vehicles. The survey findings also show consumers believe the federal government bailout in 2009 allowed GM to avoid liability for the deaths, and has also helped the company avoid making necessary changes to improve its corporate culture and business operations. 

The survey, conducted on April 10, 2014 by McLaughlin and Associates, was released at the 2014 New York International Auto Show in the wake of GM CEO Mary Barra's testimony before House and Senate Committee hearings on the company's decade-late vehicle recall that is connected to 13 deaths and dozens of injuries.

GM CEO Barra Knew About Steering Defect in 2011

BarraAccording to documents released today by the House Energy and Commerce Committee, General Motors CEO Mary Barra was made aware in 2011 of a steering loss defect in Saturn Ions that were not recalled until March 31 of this year, in apparent response to our request of March 19.

We made the recall demand after NLPC Associate Fellow Mark Modica found a glaring anomaly while examining documents on the National Highway Traffic Safety Administration (NHTSA) website. NHTSA had ordered a recall in March 2010 of Chevy Cobalts and Pontiac G5s for the steering loss defect but three years later had not yet ordered a recall of Saturn Ions, which have the same power steering system.

Barra Can't Blame 'Old GM' for Today's Problems

Roll Call mastheadRoll Call published my piece today. It was written before the recall of 1.5 million vehicles for steering loss, in apparent response to our March 19 request.

Why did General Motors wait a full decade to recall more than 1.6 million vehicles that have been connected to 13 deaths and dozens of injuries?

Most of the questions at this week's Congressional hearings will certainly focus on who knew what, and when they knew it. The answers, and how they relate to the 2009 government bailout of GM, could have political and criminal implications. When it comes to questions of vehicle safety, congressional investigators no doubt will find that the bailout only enabled a culture of mediocrity at GM.

Modica: GM Hid Ignition Defect From Bankruptcy Judge

NLPC Associate Fellow Mark Modica was a guest last night on The Willis Report on Fox Business Network.

Here's a transcript:

GM Recalls 1.3 Million Vehicles With Steering Loss Defect

In apparent response to our request, General Motors announced today that it would recall 1.3 million vehicles that may experience sudden power steering loss.

We made the request on March 19 after NLPC Associate Fellow Mark Modica found a glaring anomaly while examining documents on the National Highway Traffic Safety Administration (NHTSA) website. NHTSA had already ordered a recall in March 2010 of Chevy Cobalts and Pontiac G5s for the steering loss defect but three years later had not yet ordered a recall of Saturn Ions, which have the same power steering system. In my March 19 letter to GM CEO Mary Barra, I wrote, "We do not know why NHTSA has not already ordered a recall or whether politics enter into its decision-making process.  It doesn't matter. You have the authority to immediately recall these vehicles."

GM Asked to Recall 382,000 Vehicles With Steering Loss Defect

GM recallThis 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.

Questions Upton Committee MUST Ask GM About Recall Delay

Fred Upton photoThe following letter was sent today to Rep. Fred Upton (R-MI), Chairman of the House Energy and Commerce Committee:

As your committee prepares for the upcoming House Energy and Commerce Committee hearing on the recent GM recall, I urge you to use every opportunity to examine what, if any, influence the U.S. government's ownership of GM has had on this troubling failure to address the dangerously flawed vehicles. In addition, we urge your committee to consider posing the following questions to panelists at your hearing:

GM Asked to Pay Back $10 Billion Bailout Costs

pile of cashPeter Flaherty, president of the National Legal and Policy Center (NLPC), today posed key questions to the General Motors leadership at a National Press Club press conference, including whether the company will repay to taxpayers the $10 billion direct cost of the GM bailout.

News that the U.S. Treasury Department has sold its remaining stake and that Mary Barra will take over as GM's new CEO have put the spotlight on the company and its future. GM executives have pointed to GM's $26.8 billion in cash as evidence of its improved financial position. Analysts have raised the possibility that the company will buy back shares or institute a dividend.

Questions for GM:

Bailed-Out GM Sponsors Chamber of Commerce's Free Enterprise Tour; NLPC Launches FauxEnterprise.com

Faux EnterpriseThe National Legal and Policy Center (NLPC) announced today the launch of FauxEnterprise.com, a satirical mimic of the U.S. Chamber of Commerce's Free Enterprise website at www.freeenterprise.com/tour.

The Free Enterprise site chronicles the "Free Enterprise Tour," which would be a welcome undertaking if not for the sponsorship of bailed-out General Motors. According to NLPC President Peter Flaherty, "I don't know who looks worse, the Chamber for not appreciating that the GM sponsorship looks silly to many people, or GM for acting like it's a competitive company operating in a real marketplace."

VIDEO: Treasury Rejects Sale of GM Stake

NLPC Associate Fellow Mark Modica was interviewed last night on Fox Business Network's Willis Report. Here's a transcript:

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