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 ➡
The Associated Press gives evidence today to how desperate General Motors is to give the appearance that the company is firing on all cylinders. GM pulled out all the stops to ensure that June sales would not disappoint when sales were slowing as a result of the company’s loss of credibility during its seemingly never-ending recall saga.
At mid-June, sales for the month at GM were lagging the previous year’s. The political minds at GM could not have this, and according to the piece:
In mid-June, however, the automaker was headed for a year-over-year monthly sales decline, according to data compiled by automotive research firms. Then, on June 20, GM asked dealers to buy more cars, and it threw in another $1,000 in discounts per vehicle, five dealership representatives told The Associated Press. The company finished the month with a 1 percent gain.
The dealers said they were asked to
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The Houston Chronicle yesterday published an account of a 2013 trip by 10 members of the House of Representatives to Azerbaijan that violates a House rule that prohibits the acceptance of overnight travel from corporations that employ lobbyists. The trip was indirectly paid for by companies doing business in Azerbaijan through nonprofit groups.
The fact set is similar to the 2008 case involving a trip to the Caribbean by then-Ways and Means Chairman Charles Rangel (D-NY), exposed by NLPC, and investigated by the Office of Congressional Ethics (OCE). OCE referred the matter to the House Ethics Committee, which “admonished” Rangel, prompting his resignation as House Ways and Means Chairman. The head of the nonprofit that sponsored the event was eventually convicted of lying to Congress.
According to the story by Will Tucker and Lise Olsen, 10 House members and 35 staffers enjoyed an all expenses paid trip to Baku, which … Read More ➡
General Motors reported earnings today for the 2nd quarter of 2014. The early prognosis is not good with share price falling after the report. While it is difficult for the Mom and Pop investor to sort through GM’s myriad of charges, special items and various smoke and mirrors, there are some key take-aways that give a glimpse of GM’s financial health. Primarily, debt continues to grow at the company, now exceeding $40 billion while earnings are propped up by special items.
Analyzing the levels of cash compared to debt at GM is probably the easiest way to get to the truth behind the many numbers thrown about in the earnings report. In just the past three months at GM, short and long term debt has grown from a hefty $37.8 billion to an even heftier $40 billion. This key fact gives a contrarian view to what the media and … Read More ➡
It has now been over two months since we requested that General Motors recall vehicles that are prone to brake line corrosion. The vehicles in question, GM truck model years 1999 through 2003, have been under investigation by the National Highway Traffic Safety Administration (NHTSA) since 2010. The government agency has done nothing noteworthy regarding the existing GM safety concern over the four year span of the investigation.
NHTSA has also proven its ineffectiveness when it comes to safeguarding American motorists by ignoring multiple complaints for newer model GM vehicles. Why hasn’t NHTSA expanded the GM brake line investigation to include model years 2004 through 2007, which also have hundreds of complaints involving failed braking as a result of brake line rust?
Owners of GM vehicles with corroded brake lines have been frustratingly trying to bring to light an issue which plagues GM vehicles more so than any other manufacturer.… Read More ➡
On Thursday, July 17, General Motors CEO Mary Barra will be back as a witness on Capitol Hill, this time before the Senate Subcommittee on Consumer Protection, Product Safety and Insurance.
Senator Claire McCaskill (D-MO), who has been an outspoken critic of GM’s response to the deadly ignition switch defect, chairs the Subcommittee. Indeed, the hearing is titled, “Examining Accountability and Corporate Culture in Wake of the GM Recalls.” Another subcommittee member, Senator Richard Blumenthal (D-CT), has been even more outspoken. Both deserve credit for seeking to make GM accountable, especially since some members on both House and Senate committees have pulled their punches on Barra and GM.
The hearing is expected to focus on the deadly ignition switch fiasco. It is imperative, however, that McCaskill and Blumenthal press Barra on a separate issue, the necessity of a recall of pickups and SUVs with a brake corrosion defect. On May … Read More ➡
Is General Motors trying to make lemonade out of lemons? In the case of the company’s recent string of lemon recalls, there seems to be a strategy to increase showroom traffic by issuing recalls for only those vehicles which do not require high costs to repair. GM CEO, Mary Barra, gave a hint at this strategy during last quarter’s earnings conference call.
Following is an excerpt from a transcript of GM’s April conference call Q & A session:
Adam Jonas – Morgan Stanley
Thanks. Good morning, everybody. First question is a two-part question. First, on the recall, 7 million units (recalled) obviously creates an enormous amount of showroom traffic and an opportunity to convert that traffic into new sales. So could you outline, perhaps, how successful have you been so far in getting folks coming in and holding the hand and obviously helping them with a real issue, but also
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Subaru last week announced a second recall for vehicles which are prone to brake line corrosion in “salt belt” states. This latest recall follows a 2013 recall for the same issue, which can cause brake failure from burst brake lines due to rust. As Subaru does the right thing by consumers and motorists regarding the safety concern, General Motors continues to claim that brake line rust is a normal maintenance issue and refuses to recall its vehicles with the same problem.
The Subaru recall weakens GM’s defense that rusting brake lines do not need to be addressed by manufacturers and owners should bear the costs and responsibility to replace rusted brake lines. As with GM’s models, the Subaru models affected are prone to rust after six or seven winters. In the case of GM models, the company has far more complaints of brake line rust than any other manufacturer, as … Read More ➡
On May 13, we asked GM to recall Chevy Silverados and other pickups and SUVs with a brake line corrosion problem. GM responded by claiming that it was a “maintenance issue” and therefore not a reason to order a recall.
The media is finally paying attention to the issue. Yesterday, Bloomberg ran a story titled “GM’s Rusting Brake Lines Don’t Make the Cut in Record Recalls,” by Jeff Plungis and Jeff Green. From the piece:
“They seem to be doing a lot of recalls, but on closer investigation, you find they’re more hesitant to do the recalls that cost more money,” said Mark Modica, an associate fellow with the National Legal and Policy Center, who was a onetime GM bondholder and a former manager at a Saturn dealership in Pennsylvania. “GM’s response has been quite callous.”
The New York Times also covered the issue yesterday in an article titled “G.M. … Read More ➡
General Motors continues to deny that there is a problem with rusting brake lines on its vehicles, as noted here yesterday. GM’s new Vice President of Global Safety, Jeffrey Boyer, claims that brake line rust “is a maintenance issue that affects the entire automotive industry.” However, a search of the National Highway Traffic Safety Administration’s (NHTSA) website shows that GM vehicles have about ten times the complaints for brake lines than Ford, Toyota and Honda combined!
NHTSA has a tool to allow searches for complaints by keyword. While there is an ongoing NHTSA investigation on model year 1999 to 2003 GM trucks, the investigation has never been expanded to include newer models which also seem to be plagued by brake line corrosion which leads to brake failure. Here are the figures from a NHTSA complaint search using the keywords “brake line.”
Chevrolet models, model years 1999-2008: 1,372 complaints.
… Read More ➡