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.
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.
Is paying someone an annual salary, as opposed to an hourly wage, a form of exploitation even if the work is identical? President Obama thinks it can be. On March 13, Obama issued an Executive Order directing the Department of Labor to draft a regulation to expand the eligibility of salaried workers on federal contracts to receive overtime pay. The threshold would rise from the current $455 a week to an estimated $970 a week; employees making less effectively would be converted to hourly status and paid at an overtime rate for work done beyond 40 hours in a given week. The president insists the issue is fairness. "Overtime is a pretty simple idea," he said at the White House ceremony. "If you have to work more, you should get paid more." Yet the issue isn't so simple.
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.
Alana Goodman of the Washington Free Beacontoday reports that Michael Bright, a senior advisor to Sen. Bob Corker (R-TN) who was instrumental in crafting a bill to reform Fannie Mae and Freddie Mac, has a controversial background.
He worked as at Countrywide Financial from 2002 to 2006, and as a senior trader for Wachovia from 2006 to 2008. Countrywide was the center of a major financial and political scandal, and was a major contributor to the sub-prime loan crisis.
An lo and behold, look who is topping the list. It is Dr. Salomon Melgen, Senator Robert Menendez' biggest donor, whose eye practice in Palm Beach, Florida has been twice raided by the FBI. Apparently, Melgen was the top recipient of Medicare reimbursements for the whole county. In 2012, he received more than $20 million. The news has put renewed scrutiny on Melgen and his relationship with Menendez, which is reportedly under investigation by federal law enforcement authorities.
The Reverend Al Sharpton, anchorman, preacher, politician and shakedown artist extraordinaire, has led what can be viewed as a charmed life. A lengthy expose published yesterday on The Smoking Gun website (see pdf) provides some insight as to why. Starting in 1983, the New York-based civil rights activist, who 20 years later would run for president, allegedly worked for several years as an FBI informant to avoid prosecution. In return for helping the feds root out organized crime from the entertainment industry, Sharpton since then has operated with near immunity. "The Rev" denies he worked as an informant, adding that the report simply rehashes "old news."
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.
State taxpayers were stiffed out of at least $87,000 when Rep. Charles Rangel stopped paying for the district office he rents in Harlem's Adam Clayton Powell Jr. State Office Building, records obtained by The Post show.
His staffers' excuse? They lost the lease, according to state Office of General Services correspondence.
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.”