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06/11/2014 - 10:09

Barra photoWell, it looks like New GM is not much different than Old GM when it comes to addressing serious safety issues on its vehicles. The Associated Press reports that General Motors CEO, Mary Barra, claims that GM has not turned up any other major safety issues. I guess Ms. Barra feels that two tons of steel traveling at high speeds with brake lines that can burst at any moment is nothing to be concerned about. The continued denial by GM that there is no safety issue with their trucks that are prone to brake line corrosion proves that the company has a long way to go before they change a culture that puts profits ahead of motorists' safety.

2,621 reads
06/10/2014 - 15:05

Dennis Williams photoThe United Auto Workers may have declined in numbers, but its taste for confrontation appears as strong as ever. And its new leader, Dennis Williams, isn't about to let anyone forget. Last Wednesday, June 4, Williams, the UAW secretary-treasurer these last four years, overwhelmingly was elected president at the union convention in Detroit. Inaugurated the following day, Williams, now 61, replaces one-term President Bob King, who at age 67 retired in the face of the union's mandatory age limit. Williams' main priority is ending the two-tier wage system to which the union agreed in 2007 as part of a deal to keep General Motors, Ford and Chrysler afloat. He'll get to test his mettle in contract negotiations next year. The union shouldn't lack for funds in this or any other endeavor; delegates approved a 25 percent dues hike.

2,668 reads
06/06/2014 - 09:36

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.

2,555 reads
06/04/2014 - 20:05

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:

2,312 reads
06/02/2014 - 10:45

Lu GuanqiuMonths have passed since the saga about the fate of Fisker Automotive ended, which was the stimulus-funded electric vehicle flop that always seemed on the verge of bankruptcy but had a long existence as part of the walking dead.

The inevitable finally happened in November, after Fisker’s executives spent many desperate months traveling the world trying to find a buyer for the struggling company. Apparently blunders and stumbles that included fires, recalls and bad reviews for the only model Fisker ever produced – the Karma – made the business untouchable for outside investors.

2,914 reads
05/29/2014 - 17:04

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.

4,515 reads
05/29/2014 - 10:13

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?

2,509 reads
05/29/2014 - 10:10

Moral MondayFollowing last week’s attention-getting demonstration at McDonald’s Corp.’s shareholder meeting in Oak Brook, Ill., Rev. William Barber returned Tuesday to his weekly routine of leading stomps and rants at the North Carolina General Assembly.

The supersized president of the NC chapter of the National Association for the Advancement of Colored People relaunched his so-called “Moral Mondays” on May 19, which coincided with the return of legislators to the state capital for a few weeks. Sizes of the crowds he is able to bring to Raleigh vary, but with the aid of the local spectacle-loving media, Barber can always count on overestimates of head counts and exaggerations of his effectiveness.

2,854 reads
05/21/2014 - 18:53

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.

6,187 reads
05/20/2014 - 18:33

Johnson, CrapoEveryone in Washington favors "reform." Unfortunately, the term can be highly deceptive. Such is the case of the Housing Finance Reform and Taxpayer Protection Act of 2014 (S.1217), a bill that would abolish troubled mortgage giants Fannie Mae and Freddie Mac in favor of a federally-backed private insurance system. Last Thursday, the Senate Banking Committee approved the measure by a 13-9 vote. Yet the bill, sponsored by Sens. Tim Johnson, D-S.D., and Mike Crapo, R-Idaho (in photos), may never reach the Senate floor - and not undeservedly. For the real problem with Fannie Mae and Freddie Mac, which now are profitable and have more than repaid their federal bailout debt, is not their existence; it is their subjection to tight federal control.

5,412 reads
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