NLPC seeks to promote integrity in corporate governance, including honesty and fair play in relationships with shareholders, employees, business partners and customers. In doing so, NLPC places special emphasis on:
* Asserting that the social responsibility of the corporation is to defend and advance the interests of the people who own the company, the shareholders. True responsibility is fidelity to one’s own mission, not someone else’s, or someone else’s political agenda.
* Exposing the seeking of influence on public officials by corporations, which is the inevitable result of high levels of government spending and intervention in the marketplace.
* Combating practices that undermine the free enterprise system, including philanthropic giving to groups hostile to a free economy.
As Duke wants to recover $1.5 million in costs related to the plant, the state office that advocates for its customers – the Office of the Utility Consumer Counselor – wants IURC to more closely scrutinize why Edwardsport’s operation has been such a miserable failure. The much-delayed and fought-over plant had a $1.4 billion cost overrun and as a result is adding an average 16 percent increase to Hoosier State customers’ electric bills.
“The ratepayers of Duke Energy should not be mandated to bear the risks and most of the costs of this boondoggle,” said Kerwin Olson, executive director of Citizens Action Coalition, to … Read More ➡
General Motors reported lackluster first quarter earnings’ results as the company took a $1.3 billion charge related to recalls. Most of the expenses for the approximately 7 million vehicles recalled, however, were not actually incurred during the first quarter.
In addition, the $1.3 billion figure is far lower than what the recall will cost GM. The power steering recall alone of about 1.5 million vehicles (which was prompted by NLPC’s exposure of the recall delay) is likely to cost more than that. The estimated cost for replacement of power steering columns is in the area of $1,300 per unit, bringing the total for this single recall to roughly $2 billion. That doesn’t include loaner cars.
There will also be legal costs and settlements which are likely to measure in the billions of dollars. Regardless of the extend of what the total costs of GM’s recent recalls will be, … Read More ➡
General Motors still has many questions to answer regarding the recall scandal that saw at least 13 lives lost in accidents involving vehicles with deadly ignition switch defects. GM waited over 10 years to recall the defective vehicles. The company now needs to answer for a seeming lack of compassion for the victims. GM initially blamed drivers of defective vehicles involved in fatal crashes by falsely implying that all of the accidents occurred while driving off-road.
In February of this year, when news of the GM ignition switch recall surfaced, the claim from GM was that all of the crashes caused by the defective switches “occurred off-road and at high speeds.” Here’s the full explanation as reported by the NY Times:
General Motors is recalling about 619,000 small cars in the United States because either a heavy key ring or a “jarring event” such as running off the road
Today 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.
According to the survey of 1,000 consumers, nearly 70 percent believe GM engaged in a deliberate cover up. When asked which of the below choices comes closest to what … Read More ➡
According 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 has denied having knowledge of an ignition switch flaw but has not said anything about the steering loss defect, which is a separate problem that affects many of the same vehicles, such as the … Read More ➡
On April 1st, General Motors announced that they were having “computer system” issues and that their March sales figures would not be released until later in the day. The company eventually reported a year over year sales gain of about four percent versus an estimate of less than a one percent gain. This came as GM CEO, Mary Barra, was preparing to testify at hearings over the recent GM recall scandal which is reported to have contributed to at least 13 deaths. Coincidentally, GM share price had been taking a hit as well.
My immediate thought during the sales release delay was that the company was not quite done cooking the numbers. Of course, this is speculative and just my opinion, but the fact that GM has been anything but trustworthy in the past led others to share my sentiment. One website title read, “General Motors Delays Sales Announcement Due … Read More ➡
As Energy Secretary Ernest Moniz announced last week a renewed push to provide $16 billion in taxpayer-backed loans for “clean” technology vehicles, more bad news emerged from another stimulus-funded electric vehicle company over the weekend.
Smith Electric Vehicles, the truck company that was supposed to “make it” because electrification made so much sense for short, urban delivery routes, halted production at the end of 2013. A quarterly report at Recovery.gov attributed the stoppage to “the company’s tight cash flow situation.”
While not a beneficiary of the Advanced Technology Vehicles Manufacturing Loan Program that Moniz wants to revive, Smith Electric is another reason why subsidies of any type for this floundering pseudo-industry – loans, grants, tax breaks, etc. – are enormous wastes. In light of the hundreds of millions of dollars that other companies like Fisker Automotive, Ecotality and A123 Systems received, Smith’s $32 million in grants is comparatively … Read More ➡
General Motors’ CEO, Mary Barra, testified this week at government hearings on the deadly recall delay that contributed to at least 13 deaths of motorists driving GM vehicles with defective ignition switches. During that testimony Ms. Barra discussed one of GM’s ridiculous early “solutions” for problems with ignitions turning to the off position as vehicles were being driven. GM engineers designed an insert to be placed in the keys’ holes in an attempt to limit how much key chains dangled. This “fix” saved the company a few dollars in labor costs that would have been charged if they recalled the vehicles to replace the defective ignitions.
Ms. Barra did not seem to think that this solution was as ludicrous as I do and the government investigative team did not press the issue. Maybe future hearings will question why such an absurd solution was offered.
Roll 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.
The 2009 auto industry bailout meant goodbye to the “Old GM” and ushered in the “New GM.” The GM bankruptcy agreement granted legal immunity to the automaker for all incidents prior to … Read More ➡
NLPC Associate Fellow Mark Modica was a guest last night on The Willis Report on Fox Business Network.
Here’s a transcript:
Gerri Willis: Well, Kenneth Feinberg as you heard is in. But Mary Barra making it clear today that doesn’t mean money is going to be doled out. So should there be a compensation fund for GM victims? Many people talking about that tonight. Here to weigh in, Mark Modica, the National Legal and Policy Center, and Jack Burkman, a Republican strategist. Mark, I will start with you. So as I said they retained Ken Feinberg. As you know he has been critical, 9/11, BP, Boston marathon, doling out the dough. What does this tell you? Is this the right thing to do for GM right now? Mark, to you.
Mark Modica: Absolutely, absolutely. I think that was the direction this … Read More ➡