Though the European Environment Agency proclaimed new cars sold throughout the European Union in 2013 as being 4 percent cleaner than those sold in 2012, an environmentalist group says testing loopholes are the cause behind the results.
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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.
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.
A $302 billion, four-year plan to fund the U.S. Highway Trust Fund — and, in turn, any road and transit projects on the table during the period — was brought before Congress by the Obama administration through the U.S. Department of Transportation.
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.
Though automakers still have a decade to hit the 2025 CAFE target average of 54.5 mpg, the Environmental Protection Agency proclaimed in a just-released annual report that the automakers were ahead of schedule in meeting said target.
Up until now, the Australian-turned-American Chevrolet SS checked off nearly all of the boxes for performance enthusiasts who sought a sedan that had a Corvette soul, but could take the family out to a weekend at the Circuit of the Americas. Only a six-speed automatic and old-school suspension kept it from matching up with the likes of the Cadillac CTS-V, Chrysler 300 SRT8 and other similar sedans.
The Environmental Protection Agency said Fiat Chrysler Automobiles’ Chrysler and Ferrari divisions, as well as Daimler’s Mercedes-Benz unit, bought greenhouse gas (GHG) credits to remain in compliance with the agency’s 2025 twin goals of 54.5 mpg and halved greenhouse gas emissions.
Reuters reports General Motors announced in its regulatory filing Thursday that it was under the microscope of five different government agencies related to its numerous recalls as of late. Aside from investigations by the U.S. Attorney’s Office for the Southern District of New York, the National Highway Traffic Safety Administration, and both houses of Congress, the automaker revealed the Securities and Exchange Commission and an unnamed state attorney general’s office were conducting their own probes. The filing also acknowledged GM was under the gun of 55 pending class action lawsuits in the U.S., and five of the same in Canada. GM said they were working with all of the investigations, though the automaker did not say what the SEC was looking for in its probe.
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.
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.
Acura fans hoping to ditch their TL or TSX for an all-new 2015 TLX in time for the start of the summertime driving season will have to make do until sometime later this summer, as the automaker has delayed the launch of its newest sedan.
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.
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.
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