Category: Blog


GM Payout Offers Begin

September, 2014

Dear Care for Crash Victims Community Members:

Automotive News reports on first payouts.

“Dozens of new claims have poured in each day, with the tally rising from 445 on Sept. 12 to more than 850 now. Fund administrator Kenneth Feinberg and his staff are just beginning to review them. Early results suggest that GM will pay for many more deaths and injuries than it had acknowledged, but many claims are likely to be rejected unless families can provide more evidence.

“A significant number of these submitted claims are completely ‘undocumented’ or ‘deficiently’ documented and cannot be processed until required supporting docs are submitted,” Camille Biros, Feinberg’s deputy, told Automotive News in an email.”….

“Two of the first payment offers went to the families of Amy Rademaker and Natasha Weigel, who died in October 2006 when a Chevrolet Cobalt driven by a friend left a rural Wisconsin road and crashed into some trees.

Weigel’s stepfather, Ken Rimer, said he and his wife met with Feinberg several weeks ago and submitted a claim under what’s known as “Track B,” a less streamlined alternative that allows for individual negotiations and consideration of extenuating circumstances. Their offer includes the fund’s $1 million per-death minimum plus an additional amount Rimer and his lawyer, Bob Hilliard, didn’t disclose.

“We kind of figured this was our best avenue,” Rimer said, explaining why they chose to take Feinberg’s offer and drop the lawsuit. “It simplifies things. Anytime you go in front of a judge and jury, you don’t know what’s going to happen.”  See

http://www.autonews.com/article/20140929/OEM11/309299975/gm-victim-fund-begins-payout-offers

Latest GM statistics show 153 claims made for crash deaths and 23 crash deaths deemed eligible for GM payout offers to be made.  Data as of September 26, 2014 are publicly available at 

http://www.gmignitioncompensation.com/docs/gmFacilityOps.pdf

See

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3 Views of the NHTSA Record


3 Views of the NHTSA Record

September, 2014

Dear Care for Crash Victims Community Members:

1. Current NHTSA Deputy Administrator David Friedman:“When automakers have failed to recall vehicles quickly, NHTSA has repeatedly issued the maximum fines allowed by law — more than $140 million in five years.”  Seehttp://www.usatoday.com/story/opinion/2014/09/16/david-friedman-national-highway-traffic-safety-administration-editorials-debates/15745881/

2.  USA Today Editorial Board: “GM withheld key information from regulators. It settled cases secretly, ignored actions by its own employees and left dangerous cars on the road for a decade. But when companies act so deplorably, safety watchdogs are needed most. Whether because of corruption, capture by the industry or just plain cluelessness, NHTSA failed.

Congress wants to beef up the agency’s powers and open more data to the public. OK. But an empowered lapdog is still a lapdog. What’s needed is leadership that changes the agency’s ways.”  See

http://www.usatoday.com/story/opinion/2014/09/16/gm-ignition-switch-recall-auto-safety-nhtsa-editorials-debates/15745713/

3. Ralph Nader:

“Today, NHTSA operates more as a consultant to the auto companies as executives pass back and forth between regulatory agency and regulated business as if they were merely divisions of the same firm. NHTSA holds secret meetings with auto companies. The agency has not ordered a manufacturer to recall its defective vehicles for 35 years.

NHTSA needs to end its criminally negligent “business as usual” relationship with auto companies. Only congressional action fueled by the organized outrage of aggrieved families can change the deadly status quo.”  See

http://www.usatoday.com/story/opinion/2014/09/17/ralph-nader-safety-nhtsa-investigation-regulation-congress-gm-stalled-column/15801047/

Current Reality:

There is a clear and present danger we face every day – here in the U.S.A.  Crash deaths in the U.S. currently occur at a rate of nearly 100 per day.  Serious crash injuries occur at the rate of nearly 400 per day.  Crash injuries of all severities occur at a rate of about 6,000 per day.  Societal losses from U.S. crash losses amount to more than $2 Billion per day in the U.S.A. 

As I wrote in the July 2014 Monthly Report:

“The GM Recalls come at a time when the nation is celebrating its Declaration of Independence that held “Safety” as a fundamental purpose. During just the expected 8 years of President Obama’s Administration, the nation is on track to record nearly 250,000 crash deaths (more than twice the number of Americans killed in the Afghanistan, Iraq, Korean, and Viet Nam Wars — combined).   Plus 1 million serious crash injuries.   And all crashes are expected to result in $7 Trillion of societal losses in America during these eight years.”

A higher national safety priority is needed to protect Americans from crash force violence that is killing, maiming, and costing enormous U.S. treasure. See   https://www.careforcrashvictims.com/assets/MonthlyReportforAugust2014.pdf

Lou

 

GM Recall Coverup Continues With New Chairman Solso


GM Recall Coverup Continues With New Chairman Solso 

September, 2014

Dear Care for Crash Victims Community Members:

NY Times reports:

In February, the initial recall of hundreds of thousands of cars with defective ignition switches was treated in such a routine manner at the board’s monthly meeting that the board’s chairman, Theodore M. Solso, said he had only a vague recollection of the details.

“I can’t remember the specifics,” Mr. Solso said in an interview. “It was a large recall. There were probably cost estimates.”

See http://www.nytimes.com/2014/09/08/business/gms-board-is-seen-as-slow-in-reacting-to-safety-crisis.html?hp&action=click&pgtype=Homepage&version=HpSum&module=first-column-region&region=top-news&WT.nav=top-news&_r=0

Looks like the American people will finally learn more.  Hopefully before another person dies of preventable GM crash injuries.

Lou

 

NY Times Investigating NHTSA’s Failures to Protect Americans


NY Times Investigating NHTSA’s Failures to Protect Americans

September, 2014

Dear Care for Crash Victims Community Members:

Another excellent article on NHTSA’s failures to protect Americans has been published.“An investigation by The New York Times into the agency’s handling of major safety defects over the past decade found that it frequently has been slow to identify problems, tentative to act and reluctant to employ its full legal powers against companies.”

See http://www.nytimes.com/2014/09/15/business/regulator-slow-to-respond-to-deadly-vehicle-defects.html?hp&action=click&pgtype=Homepage&version=LedeSum&module=a-lede-package-region&region=top-news&WT.nav=top-news&_r=0

Lou

 

GM Recall Program: Deaths Rise to 23


GM Recall Program: Deaths Rise to 23

September, 2014

Dear Care for Crash Victims Community Members:
NY Times reports on crash victims acknowledged under the GM “Compensation” Plan.  This is an excellent article that gives readers a glimpse of the human tragedies and some of the costs faced by crash victims.

See http://www.nytimes.com/2014/09/30/business/deaths-tied-to-flawed-general-motors-ignition-rise-to-23-as-compensation-offers-go-out.html?hpw&rref=automobiles&action=click&pgtype=Homepage&version=HpHedThumbWell&module=well-region&region=bottom-well&WT.nav=bottom-well

Reuters reports “Under the program’s protocol, eligible death claims will receive at least $1 million, which could increase depending on factors such as whether the deceased had any dependants. GM has set aside $400 million to cover the compensation costs, and said the total could rise by another $200 million.”  Seehttp://www.reuters.com/article/2014/09/29/us-gm-recall-compensation-idUSKCN0HO1F220140929

DOT Policy Guidance on the value of a statistical life should be calculated at $9.1 million in 2012.  See attached DOT document.  If the GM “Compensation” plan met that U.S. policy the 23 deaths so far would cost GM more than $209 million.
Unfortunately many, probably most if not all, crash victims are not likely to receive anything like the dollars called for by U.S. policy guidelines.  See https://www.careforcrashvictims.com/assets/MonthlyReport-June-July-2014.pdf 
Lou

 

“Total Failure on Auto Safety” & Preponderance of Evidence of NHTSA Captivity


“Total Failure on Auto Safety” & Preponderance of Evidence of NHTSA Captivity

September, 2014

Dear Care for Crash Victims Community Members:
NHTSA’s Total Auto Safety Failure To Protect
After the September 16, 2014 Senate Hearings on NHTSA, the NY Times published a good editorial headlined “Total Failure on Auto Safety”.  The Times noted:  “The agency also did not connect the dots between consumer complaints, service bulletins G.M. sent to its dealers about the ignition switch and reports of accidents in which air bags didn’t deploy.” See http://www.nytimes.com/2014/09/18/opinion/avoiding-the-next-auto-safety-failure.html

The NY Times has been doing excellent reporting on NHTSA failures to protect Americans — so much so I think a Pulitzer Prize should be considered.   Unfortunately, this NY Times editorial did not address GM and industry capture of NHTSA.  More is needed to be done to prevent additional needless deaths and serious injuries — more dots need to be connected.

NHTSA – Industry Lapdog

USA Today’s editorial not only mentioned NHTSA’s captivity but also concluded NHTSA was not a watch dog but a lapdog.  USA Today gave due credit to the NY Times reporting, carried a companion, well documented, Op Ed by Ralph Nader, and provided for public comments.  Seehttp://www.usatoday.com/story/opinion/2014/09/17/ralph-nader-safety-nhtsa-investigation-regulation-congress-gm-stalled-column/15801047/

The NY Times has been keeping an excellent and improving timeline of the GM scandal of deaths and who knew what, when.  The public needs to see more of these dots connected.  See http://www.nytimes.com/2014/09/17/business/senate-hearing-on-nhtsa-and-recalls.html  
Investigative reports still need is an interactive graphic showing a time lapse “chess board” of people who have gone through the DOT NHTSA “Revolving Door” to and from industry – and the powerful positions they hold and held that provide a “preponderance of evidence” of NHTSA captivity.
NHTSA Culture of Captivity, Coverup, and Collusion
NHTSA Deputy Administrator David Friedman used the term “preponderance of evidence” – the lack thereof in his view — to defend NHTSA inactions since 2001.  Friedman assured that action would be taken when there was a “preponderance of evidence” in his judgement — not the public’s judgement.  As for public availability of NHTSA information, Mr. Friedman said some of it was available at the NHTSA Public Reading Room.  (So are interested owners of as yet unfixed defective vehicles to drive to D.C.?) On the same day, the House Committee on Energy and Commerce issued its Staff Report “Review of NHTSA” (copy attached).  In it on pages 2 and 3, the Committee describes its interviews of NHTSA investigators.  Repeatedly, these NHTSA investigators told the Committee that they “did not recall” details or conversations regarding the GM switch crash deaths.  Is it not a crime to mislead Congress?
A long time safety researcher, Mr. Tom Kowalick, sent a Report to ranking member Henry Waxman on the GM Recall issues.  He sent a  very serious and substantive report (copy attached).  He included political cartoons on the subject to illustrate public interest in the subject.  On page 10, there is a cartoon showing GM being questioned on its decade of failures to recall deadly vehicles.  To each question the answer given was “We don’t recall.”
Faulty memories of life or death issues have been found by the NY Times at the highest levels of GM.  The current Chairman of the Board of GM, who was on the Board in September of 2013 when the company settled a major ignition switch law suit on a fatal crash, was interviewed by the NY Times:   “In February, the initial recall of hundreds of thousands of cars with defective ignition switches was treated in such a routine manner at the board’s monthly meeting that the board’s chairman, Theodore M. Solso, said he had only a vague recollection of the details.

“I can’t remember the specifics,” Mr. Solso said in an interview. “It was a large recall. There were probably cost estimates.””

I wonder when he said “probably cost estimates” whether he was thinking of monetary costs to the corporation or costs of customer lives lost.
We can and must do better protecting people.  Preventing crash deaths and serious injuries is in the long term interests of the public, customers, employees, suppliers, and shareholders.
Lou

 

First Known GM Fatality After Recall


First Known GM Fatality After Recall

September, 2014

Dear Care for Crash Victims Community Members:

NY Times reports: “Her accident, on March 18, is the first known fatality to have occurred after G.M. disclosed the defect and began recalling 2.6 million cars.”…. “During months of outcry over G.M.’s handling of the switch issue, as investigations and lawsuits mounted, the company has fought any effort to get the recalled cars off the road until they are repaired.”

See http://www.nytimes.com/2014/09/26/business/after-a-gm-recall-a-fiery-crash-and-a-payout.html?hpw&rref=automobiles&action=click&pgtype=Homepage&version=HpHedThumbWell&module=well-region&region=bottom-well&WT.nav=bottom-well

And I recommend reading the public comments too.

We are left to wonder how many more tragedies will be allowed to occur before NHTSA and GM act to adopt “Park It Now” that was recommended by Sen. Blumenthal and many others.

Lou