Corporate Integrity Project

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.

GM's Internal Investigation (Mary Barra's Whitewash) Prompts Questions

Valukas photoIt is expected that GM's internal investigation will absolve GM CEO Mary Barra of responsibilty for the deadly recall delay that resulted in at least 13 deaths and 31 injuries.

I don't think anybody expects an investigation paid for by GM and conducted by lawyers with longstanding cozy relationships with GM to be anything but a whitewash. This only increases the necessity of NHTSA and Congress getting to the bottom of the delay. They owe it to the victims and the public.

People are tired of hearing leaders at the highest levels of responsibility claim that they were simply not aware.

Here are some questions for GM, NHTSA and Congress:

Silicon Valley Capitulates to Jesse Jackson Shakedown

Jesse Jackson

In the sixth year of the presidency of an African-American, long after Jesse Jackson, Sr. should be seen as relevant to anything, some of the largest companies in California's Silicon Valley are resuscitating his career as tribute artist. Jackson once again is resorting to his anachronistic but apparently still effective tactic of issuing an ultimatum for "diversity," giving a company a choice: 1) orient hiring, marketing and other activities to favor nonwhites; or 2) get ready for a boycott, picketing, a lawsuit or other bad publicity. Though it has been a number of years since he has pulled this off, this May he gave information technology industry titans the full Jesse treatment - and on their own turf. At shareholder meetings of eBay, Google and Facebook, Jackson issued aggressive calls to hire blacks and other "people of color," especially for top positions.

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?

How Warren Buffett Milks Consumers & Taxpayers Through Wind Energy

Warren Buffett photoIn my previous Special Report titled "The Carnahan Wind Deal," I documented that wind energy is highly inefficient and requires additional transmission lines and back-up gas generators when the wind doesn't blow. Yet, windmills keep getting built, thanks to government subsidies.

But it is very hard to trace these subsidies. Vague statements about "tax credits" and "mandates" give no hint of the magnitude of returns that these subsidies provide to crony windmillers. Indeed, in the Carnahan Special Report, we had to burrow into financial statements of a foreign company and its subsidiary to understand where all the money was going.  The principal information was buried in an arcane note to these financial statements.

GM Rusted Brake Line Problem Also Plagues Newer Models

GM brake linesNLPC is requesting that General Motors recall vehicles with a dangerous rusted brake line defect. The request is based on a National Highway Traffic Safety Administration (NHTSA) investigation of GM trucks for model years 1999 to 2003 that included Chevy Silverados and GMC Sierras. We are also asking NHTSA to order a recall without further delay.

Further investigation finds that NHTSA has received many additional complaints for newer model GM trucks that appear to be afflicted with the same defect.

NHTSA Asked to Recall GM Pickups and SUVs With Brake Corrosion

David FriedmanToday, I sent this letter to David Friedman (in photo), Acting Administrator of the National Highway Traffic Safety Administration (NHTSA):

On March 30, 2010 NHTSA's Office of Defect Investigations opened Preliminary Investigation PE10010, into corrosion-related brake line failures in General Motors full-size pickups made between 1999 and 2003. In January 2011, that investigation was upgraded to ODI Engineering Analysis EA11001, which in part appears to determine if corrosion-related brake line failures were a General Motors-specific issue or industry-wide. The "Engineering Analysis" investigation remains open to this day after over three years, making it NHTSA's longest-running open investigation, and the second longest investigation in its history.

Space Launch Deal Puts Spotlight on Revolving Door

Correll photoWashington's metaphorical "revolving door" keeps on spinning. A recent case involving a former Air Force procurement official is at the center of a high-stakes dispute over the launching of rockets into space, and the huge contracts that go with them.

From March 2011 to January of this year, Roger "Scott" Correll (in photo) was the official at the Pentagon responsible for procuring launch services from private companies. One of his last official acts before his "retirement" in January was to oversee a deal with a company called United Launch Alliance (ULA) for a whopping 36 future launches. ULA is a joint venture of Boeing and Lockheed.

GM Resists Brake Corrosion Recall; Trots Out Controversial Spokesman

Alan AdlerGM's initial response to our request yesterday for a recall of vehicles with a brake corrosion problem is completely unacceptable. It was contained in a Detroit News article about our call for the carmaker to recall 6 million pickups and SUVs that are the subject of an open investigation by the National Highway Traffic Safety Administration (NHTSA).

GM spokesman Alan Adler, in photo, claimed that the brake corrosion problem is industry-wide, and suggested it was a normal wear-and-tear issue. He told the News:

The trucks in question are long out of factory warranty and owners manuals urge customers to have their brake lines inspected the same way brake pads need replacement for wear. In fact, more than 20 states require brake-line inspections at one- or two-year intervals or when stopped for a violation.

GM Asked to Recall 6 Million Chevy Silverados and Other Vehicles for Brake Corrosion Problem

Mary BarraHere's the text of a letter I sent today to GM CEO Mary Barra. As I indicate, we welcomed her affirmative response to our request last month for a recall of a separate set of vehicles with a different problem.

Dear Ms. Barra:

We ask General Motors (the Company) to recall model years 1999 through 2003 for the following vehicles: Chevrolet Avalanche, Chevrolet Silverado, Chevrolet Suburban, GMC Sierra, GMC Tahoe and GMC Yukon.

These six million pickups and SUVs endanger the lives and safety of their owners due to a loss of braking related to brake line corrosion.

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