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GM Response to Recall Delay Victims Anything BUT Compassionate
NLPC ^ | March 25, 2014 | Mark Modica

Posted on 03/25/2014 9:05:55 AM PDT by jazusamo

Barra photo

Merriam-Webster.com defines compassion as, "a feeling of wanting to help someone who is sick, hungry, in trouble, etc." A Google search teaming the name Mary Barra with "compassionate" pulls up a host of articles fawning over General Motors' new CEO's handling of the company's botched recalls which seem to have cost at least 12 American lives. Contrary to the media's belief that GM is a compassionate entity working in the best interests of accident victims, the facts show that the response to defects in GM vehicles and subsequent recall delays has been anything BUT compassionate.

The NY Times continued its excellent investigative reporting on the GM recall delay story with an article describing how GM reacted to victims who tried to go up against the corporate giant after lives were lost in accidents involving defective GM vehicles. From that piece:

It was nearly five years ago that any doubts were laid to rest among engineers at General Motors about a dangerous and faulty ignition switch. At a meeting on May 15, 2009, they learned that data in the black boxes of Chevrolet Cobalts confirmed a potentially fatal defect existed in hundreds of thousands of cars.

But in the months and years that followed, as a trove of internal documents and studies mounted, G.M. told the families of accident victims and other customers that it did not have enough evidence of any defect in their cars, interviews, letters and legal documents show. Last month, G.M. recalled 1.6 million Cobalts and other small cars, saying that if the switch was bumped or weighed down it could shut off the engine's power and disable air bags.

In one case, G.M. threatened to come after the family of an accident victim for reimbursement of legal fees if the family did not withdraw its lawsuit. In another instance, it dismissed a family with a terse, formulaic letter, saying there was no basis for claims.

A New York Times review of 19 of those accidents - where victims were identified through interviews with survivors, family members, lawyers and law enforcement officials - found that G.M. pushed back against families in at least two of the accidents, and reached settlements that required the victims to keep the discussions confidential.

The timing of the revelation (May 15, 2009, just two weeks prior to GM filing for bankruptcy) that a "potentially fatal defect existed in hundreds of thousands" of GM vehicles is of particular importance as the company is currently being accused of hiding the liabilities arising from the defects from the bankruptcy court i n June of 2009. Is it really believable that the company honestly overlooked a "potentially fatal defect" and the accompanying lawsuits when they were required to disclose them to the bankruptcy court? Also, how could President Obama's Auto Task Force, which orchestrated the bankruptcy process, not know of the issues when they were so deeply entrenched at GM?

Apologists for GM might argue that the deplorable treatment of accident victims were the actions of "Old GM." Unfortunately, the same people remained in power at "New GM," with the exception of some who were replaced by Obama-appointed executives. Let's be honest here, if Old GM knew about the defects, New GM had to know as well. Also, meetings were held in July of 2011 regarding the known defects at a time when Mary Barra was head of product development; still, no recall. And New GM's recent responses have not been any better than the old.

Let's flash back to GM's response when evidence surfaced that the company delayed recalls for vehicles that had known defects. GM's first reaction was to only recall some of the defective vehicles (leaving dangerous vehicles on the roads until media pressure led to a full recall) while blaming victims for the accidents. Here's GM's statement as reported by a NY Times piece dated February 13, 2014 :

In a separate news release, G.M. said it knew of six deaths in five crashes in which the front air bags did not deploy.

"All of these crashes occurred off-road and at high speeds, where the probability of serious or fatal injuries was high regardless of air bag deployment. In addition, failure to wear seat belts and alcohol use were factors in some of these cases," the statement said.

Alcohol was involved in two of the five crashes, resulting in three of the deaths, Alan Adler, a spokesman for G.M., said in a telephone interview. The statement said G.M. was also aware of 17 other crashes "involving some type of frontal impact and nonfatal injuries where the air bags did not deploy."

Wow, that's a lot of lies from GM packed in to just a few short paragraphs! GM knew of more than "six deaths in five crashes." Not all crashes occurred "off-road and at high speeds." There were a heck of a lot more than "17 other crashes" where air bags did not deploy. The despicable implication that accident victims were speeding and intoxicated really shows what a lack of "compassion" there really is at the company.

Reuter's also published a piece which exposed how poorly New GM and the National Highway and Transportation Administration (NHTSA) handled the problem. One Saturn Ion owner described her experiences:

Saturn Ion owner Nancy Bowman of Washington, Michigan, said she is outraged that GM allowed her to drive a "death trap." She said her car had so many ignition problems she was afraid to resell it to an innocent buyer.

She bought the 2004 model car new and still drives it after extensive repairs and multiple run-ins with a Saturn dealer she called dismissive.

"Five times the car died right out from under me after hitting a bump in the road," she wrote in a 2013 posting on a complaint website, arfc.org, that says it sends information to the National Highway Traffic Safety Administration (NHTSA).

"Every time I brought it in they said it was an isolated incident. Couldn't find the problem, so they acted like I was an idiot."

The above-mentioned Reuter's piece also addresses GM's idea of being compassionate. The company pulled a sleazy sales ploy by offering a $500 discount on a new GM vehicle for anyone owning one of the defective, recalled cars. An attorney considering lawsuits against GM described the offer as "really ridiculous." I personally prefer, "sleazy sales ploy."

So, as President Obama likes to say, "Let's be clear." General Motors is trying to appear "compassionate" only after having been busted for lying about defects in their vehicles which they have known about for years. They are now trying to limit the fallout resulting both from legal liability and a public backlash standpoint. Mary Barra's offer to investigate what went wrong is neither compassionate nor sufficient. Our government's oversight entities must expose the wrongdoing at GM, even if it means outing cronies who are still at GM and bringing into question if Obama's Auto Task Force Team knew of the deadly defects which cost American lives.

Mark Modica is an NLPC Associate Fellow.


TOPICS: Business/Economy; Government
KEYWORDS: barra; delayedrecall; generalmotors; gm; recall

1 posted on 03/25/2014 9:05:55 AM PDT by jazusamo
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To: jazusamo

Why should GM (read government motors) care or be compassionate.

If they drive away or kill their customers because of a faulty product, so be it, the government will just bail them out again.

No worries about going out of business for them.


2 posted on 03/25/2014 9:15:05 AM PDT by Hulka
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To: jazusamo

Let’s be clear, No Government Motors for me. EVAH!


3 posted on 03/25/2014 9:18:00 AM PDT by VRWCarea51
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To: Hulka

That still may well be the thoughts of now GM/UAW (government motors).


4 posted on 03/25/2014 9:23:01 AM PDT by jazusamo ([Obama] A Truly Great Phony -- Thomas Sowell http://www.freerepublic.com/focus/news/3058949/posts)
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To: VRWCarea51

Your local Ford dealer knows that...


5 posted on 03/25/2014 9:26:58 AM PDT by Eric in the Ozarks (Rip it out by the roots.)
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To: jazusamo

Wasn’t part of the bail out a Get Out Of Jail Free card?


6 posted on 03/25/2014 9:27:10 AM PDT by massgopguy (I owe everything to George Bailey)
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To: jazusamo

Just like their buddy mac daddy they lie, lie, lie.. Should or would we expect anything more?


7 posted on 03/25/2014 9:31:08 AM PDT by chiefqc
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To: jazusamo

I’m still fascinated at the Government’s sale of its GM stock just before this story broke.


8 posted on 03/25/2014 9:38:11 AM PDT by motor_racer (Who will bell the cat?)
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To: massgopguy

They’re trying to say that but as Modica brought out in this piece, the whole fiasco was required to be brought forth in the bankruptcy.


9 posted on 03/25/2014 9:40:10 AM PDT by jazusamo ([Obama] A Truly Great Phony -- Thomas Sowell http://www.freerepublic.com/focus/news/3058949/posts)
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To: motor_racer

Very good point, coincidence? sure. /s


10 posted on 03/25/2014 9:41:35 AM PDT by jazusamo ([Obama] A Truly Great Phony -- Thomas Sowell http://www.freerepublic.com/focus/news/3058949/posts)
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To: Eric in the Ozarks

And they do not deal accordingly.


11 posted on 03/25/2014 9:55:07 AM PDT by Resolute Conservative
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To: jazusamo

I still recall my phone conversation with the GM Executive back in the 80s.

“Go ahead and sue us. We’re GM. We’ll tie you up in court for years.”

I wonder why they went broke?


12 posted on 03/25/2014 9:56:21 AM PDT by blueunicorn6 ("A crack shot and a good dancer")
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To: jazusamo

My 74 pickup and 1980 Jeep ran better and longer than any of these high tech vehicles today. The more cheap crap you add to drive up the price the worse these things are.


13 posted on 03/25/2014 9:56:39 AM PDT by Resolute Conservative
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To: jazusamo

Learned a long long time ago all I needed to know about GM... there is no lipstick you can put on that pig.

The very idea that you have some new GM when the same folks are making the decisions now that made them prior to the bailout is nonsense.

They deserved to go BK and they should not have been given special exemptions from BK laws! A true BK might have salvaged the company, instead its just trying to spit shine the same old turd.


14 posted on 03/25/2014 10:01:56 AM PDT by HamiltonJay
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To: HamiltonJay
A true BK might have salvaged the company, instead its just trying to spit shine the same old turd.

I feel the same and they're not out of the woods, I fully believe there'll be a repeat.

15 posted on 03/25/2014 10:08:43 AM PDT by jazusamo ([Obama] A Truly Great Phony -- Thomas Sowell http://www.freerepublic.com/focus/news/3058949/posts)
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To: jazusamo

I was in the business of prepossessing warranty claims for GM dealers from from 1990 to 2008. I was forced to close my business in 2008 when GM closed about a third of there dealerships. The last 3 or 4 years I made the bulk if my income dealing with recall claims. When The govmint took over I was surprised by the sudden drop of recall announcements. Now that all the government stock is sold(at a 10 billion dollar lose) the recalls are starting again.


16 posted on 03/25/2014 10:24:35 AM PDT by woodenickel
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To: Resolute Conservative

Oh, yes they do.


17 posted on 03/25/2014 10:27:58 AM PDT by Eric in the Ozarks (Rip it out by the roots.)
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To: woodenickel

Thanks, it can’t be much clearer than that, GM was tagged with the name “Government Motors” for a good reason.


18 posted on 03/25/2014 10:35:21 AM PDT by jazusamo ([Obama] A Truly Great Phony -- Thomas Sowell http://www.freerepublic.com/focus/news/3058949/posts)
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To: jazusamo

Nahhhhh.... /s


19 posted on 03/25/2014 10:38:29 AM PDT by logi_cal869
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To: jazusamo

That evil and corrupt company does not have to be compassionate - Government Motors has friends in the White House. They showed no compassion for the lawful claimants on GM assets prior to the bankruptcy, instead stiffing the bondholders, suppliers, and others with senior claims in order to reward UAW and others with insider pull.

I am boycotting GM forever because of that shocking corruption, and while it’s sad that those too uninformed to recognize a rogue company got hurt by this newest instance of indifference, it’s hard to work up much sympathy. Those who deal with GM should not be surprised to experience the same corruption, reckless indifference, or low quality that have set the standard for GM ever since they went into bankruptcy proceedings.


20 posted on 03/25/2014 10:38:57 AM PDT by Pollster1 ("Shall not be infringed" is unambiguous.)
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