Government Integrity Project

Evidence Mounts that GM Delayed Recall with Deadly Results

CobaltNew evidence is surfacing that General Motors has known for years about the deadly defects in its vehicles (as I suggested here last week) that are just now being recalled. The defects have led to the deaths of at least six people and are the basis of an ongoing lawsuit against GM.

The deadly recall delay by GM has garnered the attention of Mainstream Media as usually GM-friendly sources like USA Today, The New York Times, CNN Money and even CBS Evening News have rightfully decided that the accusations of deplorable behavior by GM deserve to be shared with the public. It is time for GM to explain its handling of the delayed recall that only came after a lawsuit settlement with one of the victims.

Fisker Sold to Chinese, Another Tesla Fire, More Stimulus Failure

Elon MuskLast week bankrupt Fisker Automotive was sold to a Chinese company, and Tesla Motors experienced another fire in one of its Model S electric cars.

The Obama administration Green-stimulus losing streak continues. The two luxury electric automaking companies, where the Department of Energy deemed taxpayer “investments” should be placed at risk, don’t inspire confidence.

Fannie Mae/Freddie Mac Shareholders Publicize Suit against Federal Taking of Assets

Fannie Mae and Freddie MacFannie Mae and Freddie Mac formally are known as Government-Sponsored Enterprises, or GSEs. These days the "S" might stand for "stolen." A group of their shareholders are arguing as much in federal court in Perry Capital v. Lew. The U.S. Treasury Department, claim the plaintiffs, overstepped its authority by impounding profits in perpetuity through its "sweep" rule of 2012. On Wednesday, February 5, the group, Shareholder Respect, held a conference in Washington, D.C. to highlight its view that the rule violates the terms of the temporary conservatorship under which Fannie Mae and Freddie Mac have been forced to operate since 2008.

Did GM Delay Recall With Deadly Results? Problems Reported Years Ago

Chevy CobaltGeneral Motors recently recalled close to a million vehicles for a deadly problem that resulted in six deaths. The models involved were Chevy Cobalts and Pontiac G5s from the 2005 through 2007 model years. The question is, why did NHTSA and GM wait so long to recall vehicles with a dangerous defect when the problems surfaced years ago?

GM Promotes Gay Rights as Company-Wide Problems Mount

General Motors continues to find innovative ways to make political points while losing market value. The company continues its heavy ad spending, this time at the Olympics. The marketing wizards at GM are trying to tap into the LGBT consumer market, which equals approximately 3.5% of the total population. At the same time, GM shares are getting hit once again as higher inventory levels are leading to heavy discounting. The company still looks a lot like Government Motors.

GM’s Debt Rises as Earnings Disappoint; Warns on First Quarter

GMGeneral Motors announced disappointing earnings results today and issued a warning that first quarter results will underwhelm as well. The reasons behind the earnings' miss are surely going to be explained away by pundits and proponents of the company still known as Government Motors to many. Sorting through the smoke and mirrors can lead to some important and simple explanations as to what is going on at GM.

Menendez Discloses Another Flight on Melgen's Jet; Will Investigations Go Anywhere?

Melgen Menendez photoSenator Robert Menendez (D-NJ) disclosed on Friday that he accepted a third flight on a jet owned by Dr. Salomon Melgen, his largest donor, who is apparently under investigation for Medicare fraud. Last year, when Menendez was forced to admit to that he accepted two flights from Melgen, his office asserted that there were no more flights. Menendez' failure to reimburse Melgen was characterized as an "oversight," the same term his office used in reference to the first two flights.

Bailed-Out GM Falls to Third Place in Global Sales, January Sales Disappoint

Mary Barra and VoltGeneral Motors shares are dropping again today as January sales figures disappointed Wall Street. Sales for the month fell 11.9% from a year ago with weakness across the board. The news follows last week's announcement that GM has now dropped to number three in global sales, being surpassed by both Toyota and Volkswagen.

Obama/Barra Embrace Shows GM is Still Government Motors

Barra SOTUThe Obama Administration may have sold the last of the taxpayers' shares in General Motors, but it appears that politics will continue to play a powerful role in the management of the company. New GM CEO Mary Barra did not seem too concerned about appearances when she attended the State of the Union as Obama's guest. Her predecessor Dan Akerson in previous months had gone to great lengths to distance GM from the federal government.

Chevy Malibu Problems Epitomize GM's Struggle

Government MotorsGeneral Motors is now approaching its fifth year of existence since emerging as a new entity as a result of the 2009 auto bailouts which saw taxpayers fund a bankruptcy process to the tune of $50 billion. Much has been debated about the "success" of GM since the controversial government-orchestrated restructuring. While GM management recently announced a dividend in an attempt to ensure investors of financial stability, a more telling indicator of the likelihood of future profitability may be found through an analysis of how competitive the company's vehicles are.

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