Category: Blog

GM Ignition Feinberg Compensation Plan – 2 Key Numbers Missed


GM Ignition Feinberg Compensation Plan – 2 Key Numbers Missed

June, 2014

Dear Care for Crash Victims Community Members:

Yesterday the Feinberg GM Ignition Recall Plan was announced.   See C Span video of the conference athttp://www.c-span.org/video/?320219-1/gm-ignition-switch-compensation

See documents handed out at http://www.gmignitioncompensation.com/

What the documents and the Press Conference by Mr. Feinberg showed is that both time and information are not on the side of crash victims.  There are numerous hurdles and hoops that crash victims will have to race through — just to have a chance to obtain some degree of compensation in return for a promissory note releasing GM from future legal liability.

Two Key Missing Numbers

First, the Feinberg team, in devising their compensation plan,  did not consider the DOT guidance on the higher value of a statistical life of $9.1 million.  Although Mr. Feinberg did ask for that information to be submitted for their consideration.  So yesterday I submitted the attached DOT Policy Guidance document.

Second, Mr. Feinberg was asked by Detroit reporter David Shepardson about the GM figure of 3,500 potential crash victims who experienced non-deployment air bag crashes.  No source of information on that number was provided publicly.  

Perhaps coincidentally, I wrote last month that using GM data, published by NHTSA in 2007, one might estimate as follows:

“Extrapolating 10 years of data from the 2005 GM data, there may have been nearly 3,500 frontal air bag non-deployment crashes that met the GM crash severity threshold for deployment.”

See https://www.careforcrashvictims.com/assets/MonthlyReport-May2014.pdf

This is an important number because with the millions of GM vehicles that will be on the roads with this defect unfixed for many more months to come we are all in danger.   Both occupants of GM vehicles and all others are endangered because when the ignition switch turns to accessory or off positions the driver loses power, power steering, power brakes and control of the vehicle — and airbag protection.
The 3,500 number over ten years equals about one such airbag non-deployment crash per day in the U.S.A.  
I believe it is fair to say that neither NHTSA nor GM are handling this with the urgency required for protecting the American people.  Both Senator Blumenthal and Markey are right to call for a “Park It Now” safety advisory that NHTSA and GM have failed to issue so far.
Lou

 

GM Board of Directors Warned of Safety Defects in 2002


GM Board of Directors Warned of Safety Defects in 2002

June, 2014

Dear Care for Crash Victims Community Members:

Reuters reports more evidence of cover-up:

“(Reuters) – A former head of General Motors corporate quality audit warned the company’s board in a letter in 2002 that it needed to “stop the continued shipment of unsafe vehicles” and “recall suspect vehicles that were already in customers’ hands.”

The letter from William McAleer shows that GM’s directors and top management were told about serious safety defects in vehicles that were coming off the company’s production lines more than 11 years before GM recalled millions of vehicles for faulty ignition switches linked to at least 13 deaths. The contents have not been previously published….”

“Lawmakers in a hearing this week grilled GM CEO Mary Barra and outside lawyer Anton Valukas, who investigated GM’s response to the switch issue. In a report published June 5, he found widespread  incompetence and negligence in many GM divisions, but he said that senior GM officials and its board of directors were unaware of the problems.

The report said that the Valukas team reviewed all board correspondence dating back to 2003. McAleer’s letter to the board is from July 2002.”

See: http://www.reuters.com/article/2014/06/21/us-gm-recall-idUSKBN0EW02O20140621

 

More Tragedies of Americans Burned to Death in Jeep Crashes – While NHTSA Fiddles

More Tragedies of Americans Burned to Death in Jeep Crashes – While NHTSA Fiddles

June, 2014

Dear Care for Crash Victims Community Members: Here is the Center for Auto Safety’s letter to NHTSA today.  July 2, 2014 The Honorable David J. Friedman Acting Administrator National Highway Traffic Safety Administration (NHTSA) 1200 New Jersey Avenue SE, West Building Washington, D.C. 20590 Dear Administrator Friedman: Over a year has passed since Chrysler agreed to perform a limited recall (13V-252) of some Jeeps prone to being consumed by post-collision fires due to a defective fuel tank system.  Model year 1993-1998 Jeep Grand Cherokee and 2002-2007 Liberty vehicles were recalled on June 18, 2013. To date, not a single Jeep has been remedied under this recall while at least 4 people have died and 2 more have been seriously burned in Jeep fire crashes.  This toll does not include other Jeep fire crash victims in NHTSA’s 2013 FARS database which has yet to be released. As revealed in NHTSA’s Special Order to Chrysler < http://www.autosafety.org/sites/default/files/imce_staff_uploads/NHTSA% 20Special%20Order%20on%20Recall.pdf  today, the first few repairs will not take place until August 1, 2014.  Other consumers may have to wait for years for a replacement part.  Based on NHTSA’s calculations using Chrysler production data, the agency believes it will take 4.7 years for Chrysler to produce the repair part for the recalled Grand Cherokees, and 2.6 years for the Liberty.[1]  Clearly the agency must exercise its authority under 49 CFR 573.14 to require an accelerated recall with additional suppliers and repairs opened to independent repair shops. The agency should not wait for Chrysler to respond to the Special Order while more consumers burn to deaths in Jeeps. While Chrysler and NHTSA continue to wrangle over the details of the year-old recall, crashes, deaths and injuries continue to mount: *         On November 10, 2013, Skyler Anderson-Coughlin was killed in Longmeadow, MA, when his 1996 Jeep Grand Cherokee was struck from behind and erupted into flames. *         On December 12, 2013, Reed Whittaker burned in his Jeep Cherokee in Livermore, CA after being rear-ended by a Hummer. The fire quickly spread to the Hummer but the occupants of that vehicle had just enough time to escape their vehicle. *         On March 11, 2014, Joseph and Esther DiGiovanni died when their 2004 Jeep Liberty was struck from behind by a pickup truck in Maryland.  The impact ruptured the Jeep’s fuel tank, causing a fire and explosion that consumed the DiGiovanni vehicle. *         On April 5, 2014, Magdaleno and Raymundo Sanchez of Texas were traveling in their 1994 Jeep Grand Cherokee when it was struck from behind, resulting in severe burn injuries to both. While CAS is pleased to see NHTSA conducted some crash tests  http://www.autosafety.org/sites/default/files/imce_staff_uploads/NHTSA% 20EA12-005%20Crash%20Test%20Report.pdf  of Chrysler’s proposed remedy, those crash tests bear small resemblance to the more rigorous crash tests conducted for NHTSA when it disapproved Ford’s proposed remedy for the Pinto.  The Pinto was subjected to the then new FMVSS 301 test procedure applicable to 1977 models but not to the recalled 1971-76 Pinto’s.  The tests released by NHTSA today are not comparable to the new FMVSS 301 which took effect in 2007 and requires a 50 mph 30% offset from a 3015 pound moving barrier with low front end.  This test is far more severe than the ones NHTSA did with a Neon and Cadillac Deville for the Jeep Grand Cherokee and Liberty for fuel system integrity at 40 mph and 35 mph with crash energy levels of about 150,000 lb-ft versus 253,000 lb-ft for the new FMVSS 301.  At best, the trailer hitch fix provides limited protection in low speed crashes while most Jeep victims have died in higher speed but survivable fire crashes. Other Jeeps still under investigation in EA12-005 have yet to be included in the recall, despite experiencing the same failures as the recalled models.  1999-2004 Grand Cherokees and 1993-2001 Cherokees are not addressed under recall 13V-252; over a million owners of these unrecalled vehicles will be stuck without even an inadequate trailer hitch repair.  NHTSA asked Chrysler to voluntarily recall the 1999-2004 Grand Cherokees but Chrysler refused.  There is no evidence in the public record that NHTSA intends to pursue an expansion of the recall population to include these vehicles.  In fact, other than the information released today, NHTSA’s Special Order and EA12-005 Report on NHTSA-conducted crash tests of recalled models, nothing has been placed in the public investigatory file for the past year. To date, there have been at least 370 fatal fire crashes of 1993-2004 Jeep Grand Cherokees, < http://www.autosafety.org/sites/default/files/imce_staff_uploads/JeepFA RSLog_6.pdf  1993-2001 Jeep Cherokees http://www.autosafety.org/sites/default/files/imce_staff_uploads/JeepCh erokeeFARSLog_2.pdf and 2002-2007 Jeep Libertys http://www.autosafety.org/sites/default/files/imce_staff_uploads/JeepLi bertyFARSLog_1.pdf  that have resulted in 503 deaths, at least 167 of which are deaths due to fire.  To stem the tide of deaths by fires in Jeeps, Chrysler must recall all the above Jeeps with a remedy that will ensure all Jeeps pass the new FMVSS 301 which took effect beginning with 2007 models. Sincerely, Clarence Ditlow Executive Director Center for Auto Safety 1825 Connecticut Avenue NW Ste 330 Washington DC 20009-5725

[1] NHTSA Special Order Directed to Chrysler Group LLC, July 2, 2014. 2 Attachments

Where is President Obama?  Why does he not care?  How many more tragedies will he permit?

Lou

U.S.: Record Year for Recalls Passed in Just 6 Months


U.S.: Record Year for Recalls Passed in Just 6 Months

June, 2014

Dear Care for Crash Victims Community Members:

The LA Times reports the U.S. has just set a new annual record for recalls.  In just 6 months!.

When will all these vehicles be fixed so Americans are safe?  
Your Life and/or Your Money?
The safety of their lives on the roads and the safety of their money in the repair shops?
The Washington Post reports:“It’s becoming the year of the recall: Automakers have recalled more than 28 million vehicles in the United States this year–more than one in 10 vehicles on the road — putting the industry on track to trample the 2004 record of 30.8 million….”

“The cost of recalls can put a financial strain automakers. GM estimates that its recalls will take $2 billion off its bottom line this year.

But for automakers and dealers, there is also an upside. Analysts say that at least two in three recall notices is fulfilled, meaning that dealers get to have their old customers back in the showroom. There, they can show off the new models, and, at minimum, be in a position to sell drivers on some repairs they previously were not considering.”

See http://www.washingtonpost.com/blogs/wonkblog/wp/2014/06/23/more-than-one-in-every-10-vehicles-on-the-road-has-been-recalled-since-january/

Sudden Loss of Power and Control = Wipeout
Imagine your GM vehicle, or passing another GM vehicle, that is not yet fixed, suddenly losing power.  Imagine sudden stalling, loss of power steering, loss of power brakes, and loss of airbag protection.   Quick!  What would you do?  What could you do?  What if the driver is a teenager?  In your car?  In a passing car?
Will we get all these GM cars fixed before another wipeout occurs?
In the U.S. each day, we are suffering nearly 100 crash deaths and another several hundred more serious injuries.    President Obama:  We can and must do better protecting Americans now from the clear and present dangers we face here in the U.S.A. today.  And since President Obama took office, more Americans have died of their crash injuries than died in the Afghanistan, Iraq, Viet Nam and Korean wars — combined.
President Obama: Please send in Special Forces to clean up the DOT and NHTSA.  You have the powers, responsibility and duty to act to protect Americans.
Lou

 

GM Recalls: GM VP Knew of Switch Problem in 2005, Delphi Investigation, & New Numbers


GM Recalls: GM VP Knew of Switch Problem in 2005, Delphi Investigation, & New Numbers

June, 2014

Dear Care for Crash Victims Community Members:

Bloomberg reports Barra Confidante knew in 2005

“A top product-development executive still working atGeneral Motors Co. (GM) was, as an engineer, involved in deliberations about a deadly ignition flaw kept from the public, newly released documents indicate.

Doug Parks, a vehicle chief engineer for the Chevrolet Cobalt in 2005, was involved in the debate over whether it was worth the cost to redesign a faulty ignition switch that had been installed on millions of cars, according to company e-mails and documents released yesterday by congressional investigators. He would later become vice president of global product programs under Mary Barra, now GM’s chief executive officer.

Barra, who rose from product development to become CEO in January, has tried to manage the fallout over the delayed switch recall by assuring lawmakers that GM’s corporate culture regarding safety has changed. While GM has ousted 15 people over the switch defect and two other senior engineers involved retired, Parks remains.” 

See  http://www.bloomberg.com/news/2014-06-26/gm-documents-show-engineer-went-against-company-panel.html

NY Times reports Senate Investigating Delphi

“Senate investigators are widening the scope of the inquiry into General Motors’ decade-long failure to recall cars with a defective ignition switch to also focus on the supplier that made the flawed part.”

See http://www.nytimes.com/2014/06/27/business/parts-supplier-is-scrutinized-in-gm-flaw.html?emc=edit_tnt_20140626&nlid=37926955&tntemail0=y

NY Times also publishes Graphic showing that in North America in 2014, the total number of GM Recalled vehicles currently = 20,013,649.  Now NHTSA needs to publish numbers of vehicles still unrepaired on the roads endangering Americans.  NHTSA also needs to publish the data it has on Recalls by each automaker.   See NY Times Graphic on GM at:http://graphics8.nytimes.com/packages/pdf/Recalls-Running-Total.jpg?action=click&contentCollection=Business%20Day&module=RelatedCoverage&region=Marginalia&pgtype=article 

These reports hold promise of more safety progress as the public learns more about the enormity of the problem and the focus moves up the chain of command.  Hopefully America will do as well with these “Safetygate” investigations as we were able to do with Watergate.

Lou

 

GM Engineers – One Now a NHTSA Executive – Were Told in July 2004


GM Engineers – One Now a NHTSA Executive – Were Told in July 2004

June, 2014

Dear Care for Crash Victims Community Members:

Automotive News in an excellent article has unveiled key documents in GM & NHTSA Recall scandal.

GM Told in July 2004

“A General Motors supplier studying an “anomaly” in a crash test on a preproduction Chevrolet Cobalt urged the company in 2004 to take a closer look at the connection between the ignition system and airbag deployment — a link that eluded engineers and investigators at the company for years afterward.

“A July 1, 2004, report by Siemens VDO Automotive analyzed why frontal and side-impact airbag sensors simultaneously shut down less than two-tenths of a second after the moment of impact. It was written a little more than a month before GM began building the first Cobalts.

The report, released this week by a congressional committee investigating GM, examined both the results of the crash test and a series of laboratory simulations run by Siemens VDO to determine how the airbag sensors would respond to a loss of power. The cutoff of the sensors “appeared to be indicative of an ignition cycle,” Siemens engineer Douglas McConnell wrote.

“He concluded: “It is recommended that future severe crashes have ignition voltage and [in-vehicle network] messages monitored to determine the root cause of the … Power Off issue.”

“The document doesn’t identify the flimsy ignition switch as the culprit in the power loss. But it is significant because it shows that, before the first production Cobalt ever left the assembly plant, a GM-commissioned analysis had flagged a potential connection between a loss of power and airbags not deploying, and recommended that GM seek a root cause….”

GM Engineer Told in 2004 – Now in Charge at NHTSA

“Officials from the National Highway Traffic Safety Administration have said they did not realize that GM had designed its airbags to not deploy when the ignition was out of the “run” position….”

“The Siemens report shows that it was provided to five GM engineers, one of whom has worked for NHTSA since 2007.

“That engineer, Matthew Craig, identifies himself on LinkedIn as a former safety performance integration team leader at GM and now NHTSA’s chief of human injury research. Craig referred a request to discuss the report to a NHTSA spokeswoman, who declined comment….

“At the time the Siemens report was prepared, only one of the 13 deaths that GM now links to failed airbags caused by faulty ignition switches had occurred. The second of those fatal crashes happened three days later. Both crashes involved 2004 Saturn Ions, which used the same ignition switch as the Cobalt.

GM started production of the Cobalt in August 2004. The Siemens report wasn’t mentioned in Valukas’ report; neither were any of the five GM engineers shown as receiving it.”  See article and readers comments at 

http://www.autonews.com/article/20140627/OEM11/140629876/gm-was-urged-in-2004-report-to-study-cobalts-ignition-airbag-link

Why Has NHTSA Failed?

Readers may recall that I have pointed to the NHTSA GM connections and associated, at the least, appearance of conflicts of interests to be examined in this and other failures to protect Americans from crash injuries.  Dr. Matthew Craig has long held an important executive position in NHTSA.  The Human Injury Research Program, that Dr. Craig is head of at NHTSA, is charged with investigation of crash injuries to determine what could be done to prevent the tragic consequences of crashes.  See https://www.careforcrashvictims.com/assets/CFCV-MonthlyReport-March2014-2%20.pdf

And in addition to GM problems with airbags not deploying, that NHTSA missed for a decade, NHTSA is now dealing with airbags deploying explosively that they failed to protect us from for a decade.  
I have long been critical of his leadership of the program.  Disclosure: I had a role for years in the CIREN program at NHTSA which is now under Dr. Craig’s management.
Airbags Not Deploying and Deploying Explosively 
In addition to GM problems with airbags not deploying, that NHTSA missed for a decade, NHTSA is now dealing with airbags deploying explosively that they failed to investigate and protect us from for a decade.   An excellent article by AutoBlog reports:“Guddi Rathore was one of those customers. She was behind the wheel of her 2001 Honda Accord on Christmas Eve 2012 when she was involved in a minor fender bender near her home in Virginia that caused little damage to her car. Shards from an exploding airbag severed arteries in her neck, and she bled to death in front of her three young children. On May 27, 2009, Ashley Parham also died in a 2001 Accord, after her vehicle hit another in her high-school parking lot. When the airbag deployed, “shards of metal exploded from the airbag mechanism, and that’s what penetrated her neck and caused her fatal injury,” a police spokesperson told The Oklahoman. Looking at the long history of deadly problems associated with this particular defect, Kane said he’s dumbfounded that NHTSA let the problem linger for years before finally opening its preliminary evaluation this month. “The agency has fallen down on the job,” he said. “At what point does NHTSA jump in and triage this? How can this happen in 2001, 2008, 2009, 2010, 2011, 2013 and now 2013 – How can we get those recalls for the same defect across a broad swath of vehicles and they’re not interested in digging into it? I don’t remember anything quite as problematic as this that the agency has let go.”“NHTSA Finally Investigates “As Congress has probed the reasons behind GM’s decade-long delay in recalling cars with flimsy ignition switches, lawmakers also want to know why NHTSA missed early warning signs of a problem, and once a problem was apparent, delayed taking action.“
Hope for Safety Solutions
With the House and Senate Committees looking into both NHTSA and GM as well as investigations by a Grand Jury, Justice Department, plaintiffs attorneys, and State Attorneys General, it appears there is a growing chance that safety reforms will finally be made for the better.
Hopefully President Obama will finally turn his attention to the more than 250,000 American crash deaths, nearly 1 million serious crash injuries, and nearly $3 Trillion in crash losses that he is on track to rack up on his 8 year watch.
If President Obama cares enough, he certainly has the responsibilities and powers to do more than he has.  He can clean up conflicts of interest at NHTSA as a start.  And for more he can do see my comments at https://www.careforcrashvictims.com/assets/com-NHTSA-strategic-plan.pdfhttps://www.careforcrashvictims.com/assets/MonthlyReport-May2014.pdf
Lou

 

Number of Crash Deaths Counted by NHTSA are Much Higher Than Reported in FARS

Dear Care for Crash Victims Community Members:

In the year 2012, NHTSA counted 33,561 crash deaths in FARS.

But that number should higher by about 1,600 more crash deaths that occurred – just not in traffic – according to NHTSA’s ironically named Not-in-Traffic Surveillance (NiTS) data system. About 260 of these 1,600 people killed each year, but not reported in FARS, are children.

See Latest NHTSA NiTS Reports attached.

NHTSA was finally forced to report such data as a result of demands spurred by tragedies, crash victims, lawyers, advocates, and an Act of Congress.

See Center for Auto Safety’s years long campaign “Missing in FARS” at http://www.autosafety.org/campaigns/24

Crash victims and safety advocates can and do make a difference when officials in all three branches of government – and people in the media – act responsibly.

See just one tragic story at http://www.claimsjournal.com/news/east/2013/12/09/241085.htm

Why does it take so many tragedies before government does the right thing? Even just counting tragedies?

Associated Documents:

Traffic Safety Facts – DOT HS 811 812

Traffic Safety Facts – DOT HS 811 813