Almost two weeks after NLPC first requested that General Motors recall vehicles with defective power steering components, the company has agreed to the recall and finally remove the dangerous vehicles from the roads. Over 1.3 million Saturn Ions and related vehicles are included in the recall, bringing the total amount of GM vehicles recalled over the past month or so to over 6 million. The total cost to GM for the recalls will be in the billions of dollars with the latest recall probably accounting for over $1.5 billion on its own. The costs to GM’s reputation are even greater.
GM has known about the latest power steering defect since 2009. It appears that the issue revolves around a defective power steering assist motor supplied by JTEKT. GM sued that company back in 2009 and recalled Chevy Cobalts and Pontiac G5s in March of 2010 which had the same … Read More ➡
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.”
The recall is even broader than we requested. We asked GM … Read More ➡
The housing market has been on an upswing these past few years, but the mortgage bailout is far from a distant memory. Anyone doubting as much should pore through the most recent quarterly report from the Special Inspector General for the Troubled Asset Relief Program, or SIGTARP (see pdf). That audit, among other things, concluded that nearly 800,000 homeowners enrolled in the Home Affordable Modification Program (HAMP) face higher monthly mortgage payments once their current subsidy runs out. The five-year-old HAMP was designed to prevent foreclosures at a time when home prices were sinking and unemployment was rising. Yet defaults, the precursor to foreclosures, have occurred at high rates anyway. SIGTARP Inspector General Christy Romero admits that if interest rates continue to rise, the problem may get far more pronounced.
National Legal and Policy Center several times (such as here and here) has taken a critical look … Read More ➡
On Friday, General Motors expanded its recall of vehicles with an ignition switch defect, but Saturn Ions with a dangerous steering loss problem remain unrecalled, even though Chevy Cobalts and other models with the exact same defect were previously recalled. The two Congressional Committees holding hearings this week must directly ask GM CEO Mary Barra why these dangerous vehicles remain on the road.
It has now been almost two weeks since we requested that Barra immediately order a recall of Saturn Ions (MY 2004 to 2007) with defective electric power steering systems. GM had previously recalled Chevy Cobalts and Pontiac G5s in 2010 which had the same defective part (as reported here) and the National Highway Traffic Safety Administration (NHTSA) has had an ongoing investigation on the defect for years. The fact that the cost to repair the steering column on the defective vehicles is much higher than … Read More ➡
Merriam-Webster.com defines compassion as, “a feeling of wanting to help someone who is sick, hungry, in trouble, etc.” A Google search teaming the name Mary Barra with “compassionate” pulls up a host of articles fawning over General Motors’ new CEO’s handling of the company’s botched recalls which seem to have cost at least 12 American lives. Contrary to the media’s belief that GM is a compassionate entity working in the best interests of accident victims, the facts show that the response to defects in GM vehicles and subsequent recall delays has been anything BUT compassionate.
The NY Times continued its excellent investigative reporting on the GM recall delay story with an article describing how GM reacted to victims who tried to go up against the corporate giant after lives were lost in accidents involving defective GM vehicles. From that piece:
It was nearly five years ago that any doubts were
… Read More ➡
NLPC has detailed extensively the wastefulness and folly of spending billions of taxpayer and consumer dollars to subsidize wind energy, solar energy and electric vehicles, all in the name of fighting climate change.
But the complicated, uneconomical boondoggle that Duke Energy built in Edwardsport, Ind. so as to burn coal gas rather than coal – and thus produce less carbon dioxide than a traditional coal plant – may be the dumbest idea to fight imaginary global warming to date. If you swallow the alarmists’ premise and “solutions,” the plant so far is a joke, as recent evidence shows it is using more energy than it produces.
Edwardsport was supposed to cost $1.9 billion but that estimate was about $1.6 billion short. The project has hacked and wheezed since 2006 under evidence of cronyism, corruption, conflicts of interest, cost overruns, delays, waste, and mismanagement, but at least it became … Read More ➡
Last week AAA released findings from tests it had run on three models of electric automobiles, and announced that the heavily subsidized vehicles suffer dramatic driving range loss in both cold and hot temperatures.
The news wasn’t new, but apparently the broader media noticed because the pronouncement from the nation’s largest consumer automotive club made it official. NLPC (beginning with a Consumer Reports experience) has reported from time to time on such problems since late 2011. The Tulsa World reported that AAA found driving distance for electric vehicles can be diminished up to 57 percent in extremely cold temperatures, and by one-third in very hot temperatures.
The models tested were the Ford Focus EV, Mitsubishi i-MiEV, and the much-hyped Nissan Leaf. AAA said it rated “normal” range as 105 miles on a single charge, but that’s not even realistic for at least one Oklahoma owner.
“My … Read More ➡
It appears that General Motors and the National Highway Traffic Safety Administration (NHTSA) have still not done everything they can to assure the safety of American motorists regarding GM vehicles that have a history of dangerous defects.
The latest defect that I have uncovered relates to a loss of power steering in Saturn Ions for the model years 2004 to 2007. The same vehicles were recalled for a separate, unrelated ignition switch problem, along with the Chevrolet Cobalt and the Pontiac G5. The delay in the ignition switch recall has been blamed for the deaths of at least 12 Americans. Unfortunately, GM is equally slow in addressing the steering loss problem.
Back in December of 2010, NHTSA opened an investigation of Saturn Ions for model years 2004 through 2007. According to NHTSA’s website, the investigation was based on “846 complaints and GM identified 3,489 reports alleging sudden loss of … Read More ➡
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 ➡