Today’s Government Irony: “Success in the global marketplace should be based solely on a company’s ability to innovate and compete...”

Eric Holder, May 19, 2014

Now read the details on GM’s Bailout, Recalls and Fines, below.

GM Bailout, Resignation of former CEO and today’s Recall debacle ought to give Congress food for thought

Editor

Editor@TheIndependentDaily.com

Earlier this year we wrote (read it here) that the coincidences associated with former GM CEO Ackerson’s very timely resignation from General Motors following cashing in all his chips to the tune of more than $7.5 million from stock options alone, should be a clarion call to the US Congress to take a more decisive posture regarding GM’s failure to repay its outstanding government-issued, corporate welfare payment. Of course, nothing happened...

Now, GM is faced with payment of a $35 million fine for failing to take timely action in the face of an apparently very faulty product. GM still owes us - you and I - more than $10 billion in unpaid stimulus. This amount has been outstanding for some time now.

Conveniently, Ackerson managed to bail from GM with a final stock option payment of more than $2 million just a very few months prior to the current Recall fiasco.

What did Ackerson know?

Writing for USA Today, James Healey reports, “GM documents show that it knew in 2001 there could be a problem with the (ignition) key moving unexpectedly out of "run" into "accessory." That shuts off the engine, kills power assist to the steering and brakes and usually disables airbags.

“It happened to a GM engineer testing a vehicle. A technician reported a similar problem in 2003. And in 2004 a ranking GM small-car engineer had the switch problem in the Chevrolet Cobalt during final development.

“GM says it knows of 12 deaths and 46 injury or fatal accidents in the U.S. linked to the problem, and one fatal crash in Canada.

“Two high-ranking engineers with links to the switches recently retired from GM. Two other engineers were put on paid leave. (As did GM’s CEO, Ackerson.)

“In a statement, (current CEO) Barra said, "We have learned a great deal from this recall. We will now focus on the goal of becoming an industry leader in safety. We will emerge from this situation a stronger company."

“GM still faces a probe by the Justice Department into whether there was a criminal violation. Congressional investigations continue, as does an SEC probe. A number of lawsuits are pending.”

From us: If you believe that anything of significance will come out of these Congressional hearings, you are not actively involved in your government.