From the Fiscal Times. The question of whether the Obama administration was protecting GM from massive recalls while going after Toyota for its defects is being raised. The issue of "crony capitalism" seems to be pervading Washington. Some companies, who support Democrat policies, get favored treatment while others do not.
The House Energy and Commerce Committee announced two days ago that it would undertake an investigation into why it took GM until quite recently to address a decade of complaints about stalling problems with several car models, and why the National Highway Traffic Safety Administration did not demand a recall of the troubled lines earlier on. Reports of unexpected stalling in Chevy Cobalts began to trickle in as early as 2003 when 7 incidents were relayed to NHTSA. . .
Why would the Obama administration sanction such a tough crackdown on Toyota, while leaving GM in peace? Certainly, the White House wanted GM to succeed. Having handed out $86 billion in bailouts to GM, Chrysler and GMAC, Cash for Clunkers, the Warranty Commitment program, the Supplier Support program, $41.5 billion in TALF loans for auto finance companies, loans from the DOE for electric car development, Recovery Act funding for battery makers and research monies funneled though the Advanced Research Projects agency, the White House had gone all-in on the success of Detroit.
No comments:
Post a Comment