Former GM PR Exec Steve Harris Returns Under Ignition Recall Fallout
(Note: header image changed based on whim of E-I-C pro tem, some will understand why — JB)
Detroit Free Press reports former General Motors vice president of communications Steve Harris has been called out of retirement to help guide his former employer through the fallout of the February 2014 ignition recall crisis “for a limited time.” According to spokesman Greg Martin, Harris’ “deep background with GM and proven experience” will be of great benefit to the company. His second return the company — the first in 2006 at the request of then-CEO Rick Wagoner after leaving in 2003 — comes on the heels of successor Selim Bingol’s resignation in April of this year.
Study: Connecticut EV Dealer Incentive Program Could Improve Technology Adoption Rates
While most states and the United States government offer tax credits to consumers for purchasing an electric vehicle or plug-in hybrid, Connecticut instead offers dealers the incentive to sell EVs and PHEVs, a move research group Navigant Research claims could be more effective at bringing about greater adoption of the new technology.
GM Issues ECM Recall, Bids Farewell To Federico
Autoblog reports another recall has been issued by General Motors, this time concerning 51,640 2014 Buick Enclave, Chevrolet Traverse and GMC Acadia crossovers screwed together between March 26 and August 15 of last year. The affected vehicles possess an engine control module whose software may provide an inaccurate fuel gauge reading, forcing the driver to pull to the side of the road should the tank prove empty instead of a quarter to empty. Owners have been asked to bring their affected crossover for a reflashing of the ECM to correct the issue.
Former Hyundai NA CEO Krafcik Now TrueCar President
TrueCar founder Scott Painter and former Hyundai North America CEO John Krafcik both announced that Krafcik is now president of the online automotive shopping company.
FTC Resumes Review Of Fuel Economy Advertising Guidelines
The Federal Trade Commission voted 4-0 Thursday to resume its review of fuel economy claims in advertising by automakers and dealers, and whether or not the agency should revise the 40-year-old guidelines governing them.
Walmart Unveils Online One-Stop Auto Insurance Venture
Walmart is the home of low prices on many, many things, from clothes and groceries, to televisions and tires. The retailer also offers a number of financial services, such as prepaid debit cards and money transfers. And of course, they’re even experimenting with heavy-duty truck design for better fuel economy.
As of this week, though, Walmart shoppers can add one more item to their list: Auto insurance.
U.S. Treasury Loses $11.2 Billion In Accounting Of GM Bailout
Detroit Free Press reports the U.S. Treasury lost $11.2 billion in taxpayer money from the rescue of General Motors back in 2008, up from the $10.3 billion estimated after the agency sold its remaining shares back in early December 2013. Part of the final figure came as a write-off of an $826 million “administrative claim,” which was found in a report by the Office of the Special Inspector General for the Troubled Asset Relief Program. The overall figure pales in comparison to the $50.2 billion given by both Bush and Obama administrations between 2008 and 2009 to GM as the automaker struggled through its financial crisis at the onset of the Great Recession.
GM Changes Mind About Airbag Recall, Ignition Switches
Automotive News reports General Motors, already being hammered from all sides from its delayed recall of 2.59 million vehicles affected by a defect in the ignition switch, issued a customer-satisfaction campaign in mid-March of this year for 1.2 million crossovers whose airbags may fail to deploy in a side-impact crash, an issue known to the automaker since 2008. Once the National Highway Traffic Safety learned of the decision, however, GM did an about-face and upgraded the campaign to a full recall. In addition, its Executive Field Action Decision Committee considered a full recall as early as November 2010, opting to issue service bulletins four times between then and 2012 instead, which spokesman Alan Adler claims satisfied the issue thoroughly without the need for increased action.
Senators Want NHTSA To Force GM To Park Recalled Vehicles
Automotive News reports General Motors’ top lawyer, Michael Millikin, is co-leading the internal investigation with former U.S. attorney Anton Valukas into the events that led to the February 2014 recall crisis that befell the automaker. The former U.S. assistant attorney joined GM in 1977, switching from battling drug lords to corporate traitors, such as the two-pronged litigation against both Volkswagen and former GM purchasing chief J. Ignacio Lopez when it was found Lopez had stolen various confidential documents upon his departure in 1993; the case was settled in 1997.
As for his current case, Millikin and his legal department found themselves under the gun earlier this month before Congress, with legislatures asking how much was known by them regarding the various lawsuits linked to the ongoing recall. GM stated its lawyer learned of the issue at the end of January 2014.
April 2014 Sales Expected To Rise With The Temperature, Fulfilled Demand
As the vortices of winter give way to the tornadoes of spring, two automotive weather forecasters predict April 2014 sales to rise 9 percent as consumers head for the showroom floor amid the warming air.
Recalls Hammer GM Brand, Q1 2014 Profits
Autoblog reports the first several thousand kits meant for repairing a handful of General Motors vehicles affected by the February 2014 ignition switch recall have been shipped off to dealers. In addition, 1.4 million recall letters have been mailed out to affected consumers of 2003 – 2007 vehicles; 2008 – 2011 affected owners will receive their letters in the coming weeks. The letters inform consumers to schedule the repair with their dealer, which GM claims will take 90 minutes to complete. Until the repair occurs, the automaker instructs all consumers to have nothing more than the key itself prior to insertion, and to be sure their transmissions and switches are set in place before removing the key.
Dodd-Frank Act Used In NY State Subprime Lender Lawsuit
The Dodd-Frank Act, created in the wake of the Great Recession as means to curb the practices by financial corporations that led to the Great Recession in the first place, is now being used to go after an automotive lending company in New York for stealing from its customers.
GM Divides Engineering Division, Faces More Recall Woes
Automotive News reports General Motors has split its engineering division in two, with executives Ken Kezler and Kenneth Morris becoming vice presidents of global vehicle components and subsystems and global product integrity, respectively. The split also means vice president of (what was) global vehicle engineering, John Calabrese will retire, though the retirement is alleged to not be linked with the ongoing recall crisis. The immediate changes are the result of the ongoing review of the ignition switch issue affecting the company since early this year, with the aim of flagging potential safety problems within a product sooner than when the division was united. GM product chief Mark Reuss proclaimed the new divisions “would have expedited a whole bunch of things” had they been in place earlier.
Automakers, Dealers Prepare For 2016 Off-Lease Market Flood
Currently, around 2.13 million cars will come off-lease by the end of 2014, up from 1.7 million last year. By 2016 and beyond, however, over 3 million vehicles annually will turn up on many a CPO and used car lot, replacing a long drought with an El Niño-esque flooding of the U.S. used car market.
Ally IPO Brings New Subprime Lending Options To The Table
With Ally Financial’s IPO now making the rounds on the New York Stock Exchange, the former financing arm of General Motors has its eyes on taking more of the subprime market, a move benefiting dealers once the last ties to the U.S. federal government have been severed and sold to the stock market.
GM Sales Unaffected By Recall, Reveals China Expansion Plans
Reuters reports a lawsuit related to the 2014 General Motors recall crisis filed in federal court in California has placed airbag supplier Continental Automotive Systems U.S. at-fault for its role in the recall. Attorney Adam Levitt of Grant & Eisenhoffer proclaimed the supplier knew about the out-of-spec ignition switch at the heart of the recall as early as 2005, yet “did nothing to redesign its airbags” to deploy even when electrical power was cut, “nor did it warn NHTSA or the public.” Continental joins Delphi Automotive as the second supplier to face a lawsuit linked to the ongoing recall crisis.
AutoNation Parts Ways With Third-Party Lead Providers, Pursues Own Online Project
In its pursuit of establishing an online store where shoppers can do (almost) everything related to the car-buying experience, AutoNation Inc. announced last week it would no longer use third-party lead providers, focusing instead on its own online plans.
GM Saved From 'Park It Now' Order, Looks To Strengthen Liability Protections
The Detroit News reports U.S. District Judge Nelva Gonzales Ramos delivered a six-page ruling in favor of General Motors, saving the automaker from issuing a “park it now” order that would have proved costly both financially and in reputation. Had the order gone forward, it would have set a precedent that not even the National Highway Traffic Safety Administration could attempt in its limited penalty power. The attorney representing the plaintiffs in the lawsuit for the order, Robert Hilliard, may appeal.
GM Internal Investigation Hindered By Corporate Culture
Bloomberg reports now-former General Motors engineer Brian Stouffer conducted a two-year internal investigation into the out-of-spec switch at the heart of the automaker’s current recall crisis, only to find confusion and resistance along the way to finding answers as to why vehicles up through 2008 were stalling out. In addition, Stouffer reported to three different executives assigned to the investigation in one year as it moved along, as well as the lack of sufficient cases that met the criteria required. Only in late 2013, when Delphi responded to Stouffer’s inquiry by providing the document showing the changes made to the switch back in 2006, did the investigation come to a head.
New PSA Boss Tavares Prepares To Rebuild Company
Though PSA Peugeot Citroen secured funding in a three-way deal between itself, the French government and Dongfeng, new boss and former Renault COO Carlos Tavares has a hard road ahead of him as he rebuilds the ailing automaker.
Dealers Still Waiting For Replacements, DeGiorgio Linked To Original Design And Upgrade
Automotive News reports dealers are still waiting for the ignition switches meant to replace the out-of-spec switch at the center of the ongoing recall crisis at General Motors. The switch was to have arrived at dealerships beginning this week, yet most dealers are in a “holding pattern” on deliveries. Once the parts do arrive, service bays will begin work on affected customer vehicles immediately before turning toward the used lot, where vehicles under the recall are currently parked until the customer vehicles are fixed.
Wash. Governor Inslee Signs Pro-Tesla Legislation, Hackers Find Ubuntu Inside
Automotive News reports Washington state governor Jay Inslee signed legislation that would allow Tesla to continue with its direct-sales business model within the state while also clarifying current law that favors traditional franchise dealership networks by preventing other automakers from following in Tesla’s path. The EV automaker thanked the state government “for supporting a culture of innovation and ultimately making the right decision for consumers” with the introduction of the bill into law.
GM Seeks Aid From NASA, Issues New Ignition-Related Recall
Autoblog reports 2.19 million of the same vehicles under the current General Motors ignition recall are under a new ignition-related recall, as well. The new recall warns of a problem where the key can be removed without the switch moved to the “off” position. According to GM, the automaker is aware of “several hundred” complaints and at least one roll-away accident resulting in injury, and is instructing affected consumers to place their vehicles in park or, in manuals, engage the emergency brake before removing the key from the ignition until repairs are made.
GM Fined $28k By NHTSA, Places 2 Engineers On Paid Leave
Associated Press reports General Motors has placed two engineers on paid leave as “an interim step” in the investigation conducted by former U.S. attorney Anton Valukas. Spokesman Greg Martin declined to name the two engineers in question.
GM Dealers Deal With Part Backlog, CEO Asked To Back Rental Car Bill
Automotive News reports the repairs of some 2.6 million vehicles affected by the 2014 General Motors ignition switch recall will be delayed by one week as the needed part slowly enters into the automaker’s dealership network. Though most dealers thought they would be receiving the part Monday, GM spokesman Kevin Kelly insisted the part was set to arrive sometime during “the week of April 7”:
We plan to send letters this week informing affected customers that parts are arriving at dealerships and to schedule a service appointment with their dealer. Repairs are likely to begin to follow soon after the customer letter mailing.
Until then, dealerships may face service backlogs, especially with affected vehicles already on the lot that cannot be sold until they are repaired, which can only happen once customer vehicles go through the 30-minute swap. On the other hand, while dealers have noticed some frustration from their customers, the majority of their base was found to be patient with the status of the repair plan.
Lemon Law King Sues Tesla In Wisconsin Circuit Court
Wisconsin lawyer and self-proclaimed “Lemon Law King” Vince Megna has filed a lawsuit in Milwaukee County Circuit Court against Tesla under the state’s lemon law.
NHTSA Asked To Investigate Impala Airbags, GM May Compensate Recall Victims
Bloomberg reports the Center for Auto Safety, citing a government petition from former General Motors researcher Donald Friedman, is asking the National Highway Traffic Safety Administration to open a defect investigation into 2003 – 2010 Chevrolet Impalas over a glitch in the car’s software that could “misread a passenger’s weight,” preventing frontal airbags from deploying. The agency has 143 records of fatalities linked to failed airbags in the Impala, 98 of which noted the occupants were wearing seat belts at time of death.
The request reflects growing concern over the algorithms used in advanced airbags, designed to meet strengthened U.S. regulations in 2003 after previous airbags were found in 300 cases to prove fatal to small adults and children due to excessive force upon deployment, and where improvements could be made.
Chevrolet Offers Incentives, Extends Truck Month To Take Back Sales Crown
Though Ram knocked Chevrolet off the monthly sales throne for the first time since August 1999, the brand is ready to reclaim their part of Truck Mountain by offering incentives and extending their annual Truck Month into April.
GM Shareholders Unflappable As Recall Repairs Begin This Week
In spite of General Motors losing $3 billion in shareholder value over four weeks since the recall crisis began, Bloomberg reports investors are holding onto their shares in the belief the automaker will recover from the debacle. Though questions about the delay persist, most shareholders are pleased with how CEO Mary Barra is guiding her company through the maelstrom.
Other factors in the massive stock decline include overseas challenges and weaknesses in product lines, including bringing European profits into the black, while Chevrolet’s Silverado fights Ram’s offerings in order to regain its traditional place in the monthly sales charts.
GM Adds Clinton Media Director To Crisis Team
In an interview with New York Magazine, consumer advocate Ralph Nader said General Motors CEO Mary Barra has “a good opportunity” to make serious changes to the corporate cost culture that gave rise to the 2014 ignition recall crisis. Suggestions include appointing an independent ombudsman with a direct line to the president and CEO for engineers who need to speak out about possible problems without having to go through “cost-concerned bosses,” as well as holding accountable all involved in any cover-up of any potential product issues.
Nader also believes the federal government should go after personal prosecutions of those tied to the current recall, but adds that unless the media keeps putting the pressure on the Justice Department to do so, the only thing that could come is a settlement in the vein of the one reached between the agency and Toyota earlier this month.
Tesla Appealing NJ Direct Sales Ban Ruling
With the Ides of April fast-approaching before direct sales come to an end, Tesla filed an appeal with the New Jersey Superior Court asking to overturn a government ruling that banned the automaker from directly selling vehicles to consumers in its two New Jersey stores.
Barra Testifies Before US Senate Subcommittee
On the second and final day of testimony before Congress, The Detroit Press reports the U.S. Senate Commerce, Science and Transportation subcommittee fired several volleys at General Motors CEO Mary Barra over her lack of answers or greater action during the ongoing GM ignition recall crisis.
Barra, Friedman Testify Before US House Committee
General Motors CEO Mary Barra and National Highway Traffic Safety Administration acting administrator David Friedman both testified before the U.S. House Energy and Commerce Committee in the first of two congressional hearings focused on GM’s 2014 recall of an ignition switch whose issues the automaker nor the agency chose to act upon in a swift manner in the decade leading up to the recall.
GM Recalls 1.3 Million Additional Vehicles As Barra Heads To D.C.
The Detroit News reports General Motors CEO Mary Barra boarded a commercial flight from Detroit to Washington, D.C. Sunday in order to prepare for two separate hearings before Congress regarding her company’s handling of the ongoing 2014 recall crisis. While in the nation’s capital, she also met with 25 family members whose relatives were killed in crashes linked to the ignition switch behind the recall.
GM Adds 824k Vehicles To Recall
Over the weekend, General Motors called back an additional 824,000 vehicles whose ignition switches could slip out of the “on” position, cutting power to the engine, brakes and air bags. According to Automotive News, the recall now affects Chevrolet Cobalts and HHRs, Pontiac G5s, and Saturn Ions and Skys made between 2008 and 2011. The reasoning is that while those vehicles were made after the switch was improved in April 2006, some 90,000 vehicles may have received the faulty switch during repairs.
GM Call Center Sees Double, Upton Prepares For Hearing
Automotive News posits an earlier recall would have prevented a majority of fatalities tied to the 2005 – 2007 Chevrolet Cobalt’s ignition switch. According to their research, seven of the eight deaths occurred after April of 2006, when the improved switch was quietly introduced into the supply stream; one of the four fatalities linked to 2003 – 2007 Saturn Ions was found to have occurred after the April 2006 improved part introduction, as well.
Among other findings, only one of the eight Cobalt fatalities did not factor alcohol or seat belts into the equation, two of the eight deaths — one under “Old GM,” one under “New GM” — led to lawsuits that were settled prior to the February 2014 recall, and that some of the families found in their research never had any contact with the automaker.
Gov. Perry Pushing For Direct Sales In Texas To Attract Gigafactory
With the possibility of bringing Tesla’s Gigafactory — and its 6,500 jobs — to Texas, Governor Rick Perry is actively pushing for legislation which would do away with the direct-sales ban currently preventing the EV automaker from doing more than presenting their wares to local customers.
Tesla Business Model Reconsidered In NJ, Talking Point In 2016 Presidential Election
Even though the door on Tesla’s direct sales model appeared to be closed in New Jersey, the Garden State is reconsidering its position just as the automaker’s way of doing business could find itself a major talking point in the 2016 run for the White House.
GM To Go Before Senate Panel, As Allegations Of Hardball Tactics Surface
General Motors CEO Mary Barra and National Highway Traffic Safety Administration acting director David Friedman will testify before the United States Senate on April 2 about their respective parties’ handling of the ongoing GM ignition recall crisis just as two senators introduced a bill expanding public access to safety filings made by all automakers to the federal government.
Congressional Hearings Loom As Switch Swap Raises Questions At GM
General Motors is facing two separate lawsuits related to failures of the ignition switch recalled last month, while also preparing to bring their case before the U.S. House Energy and Commerce Committee next month, led by a representative who honed his skills upon Firestone.
Meanwhile, reports of a quiet swap between the defective ignition switch and an improved switch in 2006 – a swap that may have violated internal protocols -may have serious repercussions for GM and now-bankrupt supplier Delphi.
Finally, a test drive gone wrong results in a GMC Yukon left to burn, whose prompt investigation is only the beginning of a long learning process in how GM handles safety in the future.
GM Rallies Rentals, Braces For Further Investigation
General Motors has issued a new recall for 355 vehicles, while also facing a possible lawsuit by an investor over “immorality”. GM may also face a new probe involving the automaker’s bankruptcy and its relation to the original recall that thrust GM into the headlines, just as the agency responsible for investigating the problem at GM faces an audit from the Department of Transportation.
Tesla Reader's Digest Vol. 1: The Politics Of Dancing
In the first edition of the Tesla Reader’s Digest, Washington state makes nice with Tesla’s business model as Arizona ponders doing the same — while fighting three other states for the right to host Tesla’s Gigafactory, no less. Meanwhile, General Motors pens a letter to Ohio asking the state to force the EV automaker to play by the same rules as they already do, pricing of the Model S falls in Europe, and Edward Niedemeyer offers his view on how Tesla can topple the auto dealer monopoly.
Saturn Ion Steering Woes Focus Of NHTSA Probe
One of the handful of models already under recall by General Motors over a defective ignition switch, the Saturn Ion faces additional scrutiny by the National Highway Traffic Safety Administration over failures traced to the vehicle’s electric power steering.
Toyoda: Recalls Changed Thinking On Safety, Customer Focus
One day after Toyota agreed to pay a record $1.2 billion in a settlement with the U.S. Justice Department resolving a criminal probe into the automaker’s handling of a recall involving unintentional acceleration in its vehicles, president Akio Toyoda proclaimed the recalls changed Toyota for the better.
Fewer Than 4,000 Green Calif. HOV Stickers Remain
For potential California PHEV owners, time may soon run out to obtain the Green Clean Air Vehicle Sticker issued by the California Environmental Protection Agency for HOV lane use, as only 3,770 of the 40,000 stickers remain available.
NADA, House Committee Press CFPB On Lending Rules
Uncertainty on auto lending rules resulting from the Consumer Financial Protection Bureau’s methodology behind consent orders issued to lenders found overcharging or otherwise misleading minority borrowers has prompted calls from the National Automobile Dealers Association and the House Financial Services Committee for a detailed explanation from the bureau on said methodology.
GM Hires New Safety Czar As Barra, Service Bulletins Go Under The Microscope
General Motors CEO Mary Barra has appointed executive Jeff Boyer to the newly created position of Vice President, Global Vehicle Safety. Meanwhile, Barra and her company’s use of service bulletins in lieu of recalls will both go under the microscope, with the new CEO likely to testify before Congress next month.
GM Recalls 1.55 Million More, Investigations, Fence-Mending Ongoing
As the recall of 1.76 million General Motors vehicles over a faulty ignition switch — a recall possibly prompted by a Georgia lawyer’s own dealings — continues to hammer away at the automaker’s “new” image, and with dealers doing all they can to mend fences between GM and its customers, three separate recalls have been issued to a total of 1.55 million vehicles.
Hyundai Sonata Fuel Economy Rating Found Lower Than Stated, Corrected
Hyundai announced a correction in the upcoming 2015 Sonata’s fuel economy upon findings showing the economy figures to be lower than originally stated.
GM Offers Cash Allowance, NHTSA Cites Lack Of Sufficient Data Amid Recall Fallout
1.37 million owners in the United States affected by the ignition switch recall issued by General Motors last month will be offered $500 toward the purchase or lease of a new vehicle just as the National Highway Traffic Safety Administration cites a lack of sufficient data as the reason said recall wasn’t issued sooner.
US Justice Dept, House Panel To Investigate GM Ignition Recall
Things are going from bad to worse for General Motors amid the fallout related to the long-delayed recall of 1.6 million vehicles worldwide over a faulty ignition switch installed between 2003 and 2007, as both the U.S. Justice Department and a House panel plan to conduct separate investigations into the matter.
Ford Medium-Duty Truck Production Moving To Ohio In 2015
With the Econoline passing the torch to the Transit Connect at the end of this year, Ford is in the process of moving production of the F-650 and F-750 from Mexico to Ohio in time for the medium-duty trucks’ redesign for 2015.
"New" GM Only Responsible For Post-Bankruptcy Ignition-Related Accidents
In addition to pledging to do business differently in the wake of a 1.6-million vehicle recall over a faulty ignition switch and the decade-long delay behind the recall, post-bankruptcy General Motors may find itself protected by its former self before the court of law for any accidents resulting from the switch.
GM Receives 107-Question Survey Over Ignition Recall
General Motors, in the midst of a 1.6-million vehicle recall involving a faulty ignition switch discovered a decade earlier — and the resulting silence until late February of this year — must now answer a 107-question survey issued by the National Highway Traffic Safety Administration about the recall by April 3.
Mitsubishi Publishing Real-World MPG Sign Of Openness With Customers
In a sign of openness toward its customers, Mitsubishi will begin publishing real-world MPG figures for their entire lineup, beginning with the Outlander PHEV.
Ignition Flaw Fallout Grows For GM
The years-long silence over a faulty ignition switch responsible for 13 deaths and a recall of 1.6 million vehicles made between 2003 and 2007 is about to take a greater toll on General Motors executives as federal investigations, lawsuits and penalties loom over the horizon.
Hyundai Canada Settles Class Action Fuel Economy Suit
Hyundai Auto Canada reached a settlement with consumers in a class action lawsuit over exaggerated fuel economy numbers among their Hyundai and Kia lineup of vehicles, paying a total of $46.65 million CAD ($41.85 million USD) in the deal, according to just-auto.
Ford Repair Shops to Undergo Mandatory Certification For Aluminium F-150s
Own a Ford dealership with a repair shop? Should your mechanics and body repair crew desire to the ability to repair the new aluminium F-150, then prepare to seek certification with a substantial price tag.
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