It has now been over six months since General Motors finally recalled vehicles with a known deadly ignition switch defect. The defect was attributed with being the cause of accidents that resulted in at least 13 deaths. The Wall Street Journal now reports that only 34% of the recalled vehicles have been fixed.
GM has taken $3.4 billion in charges and losses on the past two earnings’ reports for all of their recalls, despite the fact that most of the recalled vehicles have yet to be repaired. The most questionable part of GM’s charges come from the first quarter’s earnings’ report.
In April of this year, GM took a $1.3 billion recall-related charge for the quarter ending March 31st. Repairs on recalled GM vehicles for the ignition switch defect began in April of this year. According to GM’s earnings’ release, the $1.3 billion charge was “for recall costs in … Read More ➡
General Motors continues to deny that it has a safety problem with brake lines that are prone to corrosion in as few as five or six years. Thousands of owners of GM trucks and SUVs have complained of failing brakes due to brake lines bursting from the rust problem. One of these owners, Joe Palumbo from Pennsylvania, has made it a quest (see his website here) to expose the safety defect, thus far to little avail. GM’s latest response to Mr. Palumbo includes an implied admission that the company has been using inferior quality brake lines in its vehicles.
The response to Mr. Palumbo’s complaint of prematurely corroding brake lines came in the form of an email on August 6th of this year from [email protected]. Drew, a “Chevrolet Executive Assistant,” responded to the complaint regarding Mr. Palumbo’s 2004 Chevy Avalanche, which had brake failure after just … Read More ➡
Two years ago, in August 2012, the U.S. Treasury Department issued its so-called “sweep” rule forcing mortgage giants Fannie Mae and Freddie Mac to surrender all future profits. Shareholders were angered. Some sued the government. Their displeasure now has a measure of vindication. Near the end of July, an unnamed source leaked a confidential Treasury document to the public, dated June 13, 2011, showing that the department was willing to go to bat on behalf of outside investors, particularly The Blackstone Group, to facilitate purchases of equity stakes in the companies. At the time, Fannie and Freddie were rebounding from a deep slump, yet their management, under tight federal conservatorship since September 2008, had their hands tied. The latest revelations may strengthen the claims of existing shareholders, and more broadly, the cause of property rights.
National Legal and Policy Center for more than a year (such as here) … Read More ➡
New York City Democratic leader Albert Baldeo was convicted last week of seven counts of obstruction of justice. He was acquitted on three counts of fraud related to the use of straw donors to qualify for taxpayer matching funds for 2010 for his unsuccessful City Council campaign. The scheme was exposed by NLPC and was the subject of a New York Post story on October 11, 2011.
Baldeo is a close associate of Rep. Gregory Meeks (D-NY). The two shared an office from 2006 to 2009. The two have jointly sponsored workshops and programs on immigration and mortgage foreclosure. Meeks even arranged for a Congressional Proclamation in 2009 that called Baldeo a “visionary leader” and thanked him for his community service. See photo.
Preet Bharara, the US District Attorney for the Southern District of New York who prosecuted the case, released this statement:
The fact that Albert Baldeo lost his
… Read More ➡
The arrival of Al Sharpton in St. Louis could have been predicted. And his departure can’t come soon enough. On Tuesday morning, Sharpton, the New York City-based minister, civil rights leader and media personality, was in town supposedly to defuse the ongoing street violence following the fatal shooting last Saturday by a white police officer in nearby Ferguson, Missouri of a local black youth, Michael Brown. As revealed days later by hidden video footage, Brown very likely had robbed a convenience store. Moreover, Brown minutes later assaulted the officer and tried to grab his gun. Sharpton has demanded that police release the name of the officer and arrest him. Early today, he got his first wish. Hopefully, the cop, Darren Wilson, won’t have to hide for the rest of his life. Meanwhile, Missouri Governor Jay Nixon yesterday ordered State Police to take control of the riot area.
The rioting … Read More ➡
General Motors has yet another unresolved safety concern with its vehicles. This one involves trucks with anti-lock braking system (ABS) problems. The ABS in some GM trucks engages at slow speeds in dry conditions, leading to a loss of braking and increased stopping distances. Once again, this is a known problem at GM, as they have recalled vehicles previously from earlier model years with the same problem.
A search on the National Highway Traffic Safety Administration (NHTSA) website finds hundreds of complaints from owners of GM trucks, model years 2003 to 2008, who experienced loss of braking from inadvertent ABS activation. The root of this problem is not hard to discover; GM recalled earlier model years of the same vehicles that experienced the same problems back in 2005. The plot thickens when considering the known cause, which was brake line corrosion; a problem we at NLPC have been trying to get … Read More ➡
It has been two years since General Motors admitted that there was little demand for the Chevy Volt (as reported here) due to there being “no plug-in market.” Their answer was to “create market” to drive sales for the politically popular but economically-nonviable Volt. GM manipulated sales for the Volt through the use of subsidized leases at a time when President Obama’s favorite, green wonder-car was being criticized for low sales as it failed to live up to the early hype.
GM was able to use taxpayer money in the form of electric vehicle tax credits to help drive down costs to lessees. Taxpayers chipped in $7,500 for each Chevy Volt placed on the road for terms as low as two years. The taxpayer subsidies, along with inflated residual values and other GM incentives, provided for low monthly lease payments and led to a full two-thirds of all Volt “sales” … Read More ➡
After three years and $1.4 billion in stimulus subsidies from U.S. taxpayers, you’d think the technology and performance of the all-electric Nissan Leaf would have improved rather than worsened by now.
You’d be wrong.
Whereas once the Leaf enjoyed a favorable review by Consumer Reports (despite an extremely unpleasant test experience by one of its researchers and the identification of several negative features), the magazine has yanked its recommendation. That’s because of the Leaf’s dismal safety performance in crash testing of small cars by the Insurance Institute for Highway Safety, where it received a rating of “poor,” along with three other models.
“Collapse of the occupant compartment is the downfall for four small cars in this group, including the…Leaf,” said Joe Nolan, senior vice president for vehicle research for the IIHS. “A sturdy occupant compartment allows the restraint systems to do their job, absorbing energy and controlling … Read More ➡
It’s been a month since the billionaire triumvirate of Tom Steyer (pictured), Henry Paulson and Michael Bloomberg introduced their ballyhooed Risky Business report on the climate, and after all the op-eds, blog posts and public interviews so far, all that can be said about it is that it is already an empty, meaningless PR campaign upon which the financial hot shots have wasted their money.
There is no there, there.
Logical scrutiny of the project, from its genesis to its outcome, would reveal how deeply flawed and biased it is. Given every contributing factor, there is no other verdict that would have been reached other than “we must all do something about global warming!” Yet the legacy media has treated Risky Business as something that was objectively conceived, and which has delivered perfectly reasonable conclusions. That is to be expected from pack journalists who don’t look beyond the climate crystal … Read More ➡
There’s fallout from the July 27 Houston Chronicle exposé of a trip to Azerbaijan by 10 member of the House that violated House rules. The trip was ostensibly sponsored by nonprofit groups but was actually funded by oil companies BP, Conoco Phillips and SOCAR, the national oil company of Azerbaijan. According to the New York Post today:
Rep. Gregory Meeks pushed to let an Iran-backed natural-gas project dodge US sanctions — after attending an illicit junket paid for by energy companies.
Also from the Post:
“Congressman Meeks went on a 2013 Congressional trip to Baku, Azerbaijan, subsidized in part by corporate interests which lobby Congress — a violation of House rules. Shortly after he returned, Meeks sponsored a resolution wanted by those same corporations,”
… Read More ➡