Posted by: SWL | May 21, 2014

GM Recalls: Fed Bailout Funds Likely Not Spent on Safety

General Motors announced more auto recalls today – after announcing others just yesterday. So far this year, GM has recalled over 15 million vehicles worldwide (about 14 million in the US) for various safety reasons. That is more vehicles than GM sold in 2013!

Yesterday’s recalls covered over a million vehicles with seat belt issues, another million with transmission shift cable defects, plus smaller numbers of vehicles with various problems. Today the company issued a recall for older model Chevy Aveos and Optras at risk of dashboard fires.

American taxpayers lost money when the federal government sold the GM stock it received for the bailout money invested in the company. Several people lost their lives when the ignition on Chevy Cobalts suddenly turned off, causing drivers to lose control of the car. It seems like America would have been better off if the government had not given GM a financial bailout. Apparently the federal funds were not used for safety engineering.



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