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

 

NHTSA Celebrates EMS Week May 18-24, 2014

Dear Care for Crash Victims Community Members:

NHTSA celebrates its 40th Anniversary of EMS Week with a Selfie message from its EMS Director Drew Dawson.

See http://ems.gov/newsletter/aprilmay2014/letter_from_director.htm#

Drew joined NHTSA over a decade ago from many years with Montana EMS. When he arrived at NHTSA a decade ago, I thought I would show him the possibilities of saving the lives of more crash victims with new technologies of Automatic Crash Notification (ACN) and URGENCY software to improve timely, optimal emergency medical care.

I showed him a map of crash deaths by location in the State of Montana thinking he would be delighted as to how we could do better saving lives with instant notification of serious crashes along with URGENCY information on the calculated probability of a serious injury being present.

I was shocked by his reaction. He became visibly upset and said those people were DRT’s!

I had not heard that term before so I asked what it meant. He said DEAD RIGHT THERE!

I returned to my office dismayed but determined to continue research on ACN & URGENCY without his support.

One can see how many Americans have died in crashes in Montana and every other State for the years 2002 – 2011 at

http://www.arcgis.com/home/webmap/viewer.html?webmap=71c3bb8008ae4682ab0a36f090a2b443&extent=-161.4739,21.4327,-63.388,54.2524

Montana totals now approach nearly 3,000 crash deaths. National totals to date now exceed 400,000 crash deaths. See http://www-nrd.nhtsa.dot.gov/Pubs/811754AR.pdf

What a legacy!

NHTSA certainly could have done better — much better.

Sorry I was not able to do better.

More Evidence of NHTSA and GM’s Failures to Protect Americans

Dear Care for Crash Victims Community Members:

Please see latest Center for Auto Safety letter and attachments at

CAS Letter to NHTSA Administrator Friedman: Proper Enforcement of Stalling Recalls Could Have Prevented GM Ignition Deaths

And see excellent CNBC Documentary with voices of victims at

http://www.cnbc.com/live-tv/cnbc-originals/full-episode/failure-to-recall-investigating-gm/260083779531

Hopefully these will help improve safety.

Associated Documents:

Friedman Stalling Recalls Letter with Attachments

Stalling Recalls Detailed

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