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NHTSA "Punishes" GM With $7000/Day Fine

Tyler Durden's picture




 

So much for new GM's transparency... After failing to respond to over a third of NHTSA's requests:

  • *NHTSA: GM STILL HAS 'FAILED' TO PROVIDE SUBSTANTIVE RESPONSE

NHTSA has thrown the book at General Motors (kinda)..

  • *NHTSA SAYS GM SUBJECT TO CIVIL PENALTY UP TO $7,000/DAY

That will teach them!! There are some teeth there, as NHTSA added that it may refer GM to the Justice department.

  • *NHTSA: GM STILL HAS FAILED TO FULLY RESPOND TO SPECIAL ORDER
  • *NHTSA:GM DIDNT RESPOND TO OVER THIRD OF REQUESTS BY DEADLINE
  • *NHTSA SAYS GM SUBJECT TO CIVIL PENALTY UP TO $7,000/DAY
  • *NHTSA SAYS IT MAY REFER GM MATTER TO JUSTICE DEPARTMENT

The fine is the maximum allowed by law (that's lucky eh?). We are sure Ms. Barra is "looking into it" and indeed here is GM's response:

  • *GM SAYS IT HAS WORKED `TIRELESSLY' TO RESPOND TO NHTSA
  • *GM SAYS IT WILL CONTINUE TO PROVIDE RESPONSES TO NHTSA
  • *GM SAYS WILL PROVIDE FACTS `AS SOON AS' AVAILABLE
  • *GM SAYS GOAL IS TO BE ACCURATE, TIMELY

And as soon as the lawyers have vetted it...

 

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Tue, 04/08/2014 - 16:56 | 4636885 willpoi
willpoi's picture

The new bailout will cover that and then some

Tue, 04/08/2014 - 16:59 | 4636897 Surly Bear
Surly Bear's picture

Narrator: A new car built by my company leaves somewhere traveling at 60 mph. The rear differential locks up. The car crashes and burns with everyone trapped inside. Now, should we initiate a recall? Take the number of vehicles in the field, A, multiply by the probable rate of failure, B, multiply by the average out-of-court settlement, C. A times B times C equals X. If X is less than the cost of a recall, we don't do one.

Business woman on plane: Are there a lot of these kinds of accidents?

Narrator: You wouldn't believe.

Business woman on plane: Which car company do you work for?

Narrator: A major one.

Tue, 04/08/2014 - 17:03 | 4636908 Pladizow
Pladizow's picture

Where on my tax return do I file my portion of the $7K/day?

Tue, 04/08/2014 - 18:32 | 4637244 Freewheelin Franklin
Freewheelin Franklin's picture

78. Would you like $3  to go towards the bailout of GM?        _yes _no 

Tue, 04/08/2014 - 18:36 | 4637252 Pool Shark
Pool Shark's picture

 

 

$7,000.00 per day = $2,555,000.00 per year.

A mere $2.5 million a year???!!!

The management spends that much on coffee and doughnuts!

 

Tue, 04/08/2014 - 18:49 | 4637306 bonin006
bonin006's picture

What do you mean "mere"? that works out to a whole 0.034% of their 2013 pre-tax income!

Tue, 04/08/2014 - 19:41 | 4637449 Tabarnaque
Tabarnaque's picture

I can't believe people still buy GM cars. They're the worst crap you can get on the market. They break all the time and cost a fortune to fix. Who buys that shit?! Mind blowing.

Tue, 04/08/2014 - 20:56 | 4637628 Unpopular Truth
Unpopular Truth's picture

GM could pay the fine in kind, in cars that nobody else wants. It will make it look like they are moving inventory as well!

Tue, 04/08/2014 - 22:04 | 4637847 aVileRat
aVileRat's picture

Cars so bad they were even refused for the first 4 pitches of The Winter Soldier.

It's bad when you are giving a car for free to a project company and the Company's stuntmen refuse to use the cars due to insurance risks.

GM is a make work project, nothing less than a giant Yugo factory with tech stuck in 1996. No seriously, with the exception of the HUD go buy a pit monkey a beer and they will confirm the main GM bed has zilch changes since the "dustbuster".

(not Max. Bob, but someone who is a fan of his work)

 

Tue, 04/08/2014 - 17:09 | 4636934 Everyman
Everyman's picture

What are you doing "stealing my lines"?

Tue, 04/08/2014 - 17:21 | 4636976 DeadFred
DeadFred's picture

Crashing and burning with the family inside is a plus because there are fewer survivors to file suit. Recalls are for defects that cause scalding water to land on your crotch.

Tue, 04/08/2014 - 17:00 | 4636898 insanelysane
insanelysane's picture

The government just rated GM suvs the safest and rated all the competetors as less than safe.  See Tesla.

Tue, 04/08/2014 - 17:48 | 4637055 Deathrips
Deathrips's picture

Ohhh fuck no..not the FRENCH TICKLER!!!

 

RIPS

Tue, 04/08/2014 - 18:22 | 4637201 Jendrzejczyk
Jendrzejczyk's picture

Not the comfy chair!!!!!!!!!!!!

Tue, 04/08/2014 - 19:11 | 4637367 SWCroaker
SWCroaker's picture

Tea and cake, or DEATH?

Tue, 04/08/2014 - 17:02 | 4636906 Canadian Dirtlump
Canadian Dirtlump's picture

I recall it could be 7000 a day per accfected vehicle, which can add the fuck up fast LOL.

Tue, 04/08/2014 - 17:05 | 4636917 swmnguy
swmnguy's picture

That seems more reasonable than just $7000 a day total.  Which is why I'd bet it's just $7000 a day total.  A meaningful penalty for anything handed to a company that couldn't fit in a one-room office?  Not bloody likely.

Tue, 04/08/2014 - 17:46 | 4637032 knukles
knukles's picture

Don't fret.  The NHTSA doesn't know if it's per day, per vehicle, per 5 day week, 7 day week if it is daily, if its vehicle per day or day vehicles or recalled per day or days recalled per vehicle, vehicle recall days per week, whateverthefuck daily weekly recalled or not, not recalled, nobody recalls whether it's per day or vehicle, 5 vehicles per week day or fuck me whadda joke per day.
And all for $7,000.

Nobody knows .... or cares, for that matter.

Best I can recall....

Tue, 04/08/2014 - 17:34 | 4637008 Berspankme
Berspankme's picture

Now, is that $7K day 5 days a week or 7 days a week? Need to calculate the next bailout sum for this worthless shitbag of a company

Tue, 04/08/2014 - 18:22 | 4637198 SAT 800
SAT 800's picture

Well, you have to admit; this car manufacturer worked out as well as every other state owned car manufacturer in history. Probably just a co-incidence.

Tue, 04/08/2014 - 20:11 | 4637536 drendebe10
drendebe10's picture

Gummint Motors makes nothing I want to own or drive....

Tue, 04/08/2014 - 16:57 | 4636888 Rainman
Rainman's picture

GM toilet paper bill is 7000 fiatscos a day  

Tue, 04/08/2014 - 17:00 | 4636899 Major Major Major
Major Major Major's picture

Is that more or less than they lose with every Volt sale?

Tue, 04/08/2014 - 17:03 | 4636907 i_call_you_my_base
i_call_you_my_base's picture

They make it up on volume.

Tue, 04/08/2014 - 17:02 | 4636905 wmbz
wmbz's picture

Gubmint Motors simply sruggs that bullshit off. To big to fail, they know it and the taxpayer has no choice in the matter. We will bail them out over and over again. They can produce pure crap, who really gives a shit, the consumer just laps it up.

Tue, 04/08/2014 - 17:04 | 4636911 swmnguy
swmnguy's picture

$7000 a day?  Wow, they might have to sell 3 cars in a week.

Tue, 04/08/2014 - 17:06 | 4636919 buzzsaw99
buzzsaw99's picture

GM wipes its ass on $7000/day.

Tue, 04/08/2014 - 17:06 | 4636921 totem
totem's picture

I'm guessing the plan calls for them to pay this fine using unsold vehicle stock?

That way, GM channel stuffing is reduced and everyone at NHTSA gets a new car!

Tue, 04/08/2014 - 17:37 | 4637016 ParkAveFlasher
ParkAveFlasher's picture

It's as if Oprah is the AG.

Tue, 04/08/2014 - 18:23 | 4637206 SAT 800
SAT 800's picture

It's as if Oprah is the President; the AG is just a ventriloquist's dummy.

Tue, 04/08/2014 - 18:42 | 4637279 pupdog1
pupdog1's picture

It's hard to see how the AG can even walk to work with Obama's fist so far up his ass.

Tue, 04/08/2014 - 18:25 | 4637216 Oleander
Oleander's picture

My mother bought one of these cars. It is now sitting at the Chevy dealership and she is driving a Chevy Impala until its fixed or replaced. They told her it could be a month. The Implala came through Enterprise and she could only get a Chevy.  If every one of the car owners recieves a Chevy through Enterprise it will add up to more than $7000 a day. 

Tue, 04/08/2014 - 17:07 | 4636923 Oldwood
Oldwood's picture

I assume the GM bill will be picked up by the taxpayer, right. I always wonder where the money goes...general revenue or some special account for the AG?

Tue, 04/08/2014 - 17:09 | 4636930 Charles Wilson
Charles Wilson's picture

See also: Greece.

"We give you money, manufactured ex nihillo, you give us back money, in the form of fines.  We pay you Bail-Outs so you may pay us back from the proceeds.

John Dough, in Cubby 38-B, 3rd floor, Weimaraner Building, , Washington DC, is in charge of distributing this rebate to the Government in the form of paychecks."

Said John Dough: "I worked really hard this week.  I don't think the general public realizes the difficulties we face.."

 

What. A. Racket.

Tue, 04/08/2014 - 17:10 | 4636937 Seize Mars
Seize Mars's picture

No! Don't fine them so much! They may have to screw their bond holders!

Tue, 04/08/2014 - 17:11 | 4636944 negative rates
negative rates's picture

In their case we can call it a double dip recession.

Tue, 04/08/2014 - 17:10 | 4636939 negative rates
negative rates's picture

Can we take back their bennies yet because of shotty workmanship in the past?

Tue, 04/08/2014 - 17:50 | 4636940 Colonel Klink
Colonel Klink's picture

2.5 mil a year.  Billions of dollars worth of cars sold.  Just the cost of doing bidness with the NHTSA. 

Yet this poor guy is facing $75,000 a day for building a pond on his property.  GM puts people's lives at stake and they get $7000 a day.

http://www.foxnews.com/politics/2014/03/14/wyoming-welder-faces-fine-for...

FUCK YOU FASCIST GOVERNMENT!!!

Tue, 04/08/2014 - 17:18 | 4636964 ebworthen
ebworthen's picture

Bet they take the $7,000/day out of the pension funds.

Tue, 04/08/2014 - 17:32 | 4637002 New_Meat
New_Meat's picture

Left Pocket == Right Pocket babiez!

And I'm with ebworthen above--steal from the pension funds while they are at it.

- Ned

Tue, 04/08/2014 - 17:52 | 4637078 jimijon
jimijon's picture

How many people do the pharmaceutical companies kill per year? How much do they get fined?

Someone has a better lobby.

Tue, 04/08/2014 - 18:07 | 4637141 QQQBall
QQQBall's picture

We need a Recall Czar!

Tue, 04/08/2014 - 18:19 | 4637188 Colonel Klink
Colonel Klink's picture

Excellent idea, then we can recall Obama, Biden, Piglosi, Holder, and the other complicit, corrupt, graft taking politicians.

Tue, 04/08/2014 - 18:08 | 4637149 Freewheelin Franklin
Freewheelin Franklin's picture

It's a new form of taxation.  Fine a company then bail them out and let the taxpayer get stuck with the bill. 

Tue, 04/08/2014 - 18:46 | 4637293 pupdog1
pupdog1's picture

The NHTSA is so complicit in this I can smell the stench from here. They sat on this for 10 years while Americans were dying, and while they received countless communications about it.

Some Chieftains need to be federally prosecuted, but that is an impossibility with Holder.

Tue, 04/08/2014 - 18:54 | 4637334 NoTTD
NoTTD's picture

GM need not pay even this minor transaction charge since it has an unlimited amount of tax funds to support it.

Tue, 04/08/2014 - 18:58 | 4637342 Oil Worker 85
Oil Worker 85's picture

Exactly what is $2.5 million a year to a multi-billion dollar corporation? What a joke.

Tue, 04/08/2014 - 19:47 | 4637471 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

A tax write off, off topic: Sure love this brunette's huge tits staring at me on the left side of the page now...

Tue, 04/08/2014 - 20:15 | 4637540 TalkToLind
TalkToLind's picture

Fines, schmines.  Even with ample evidence of bad workmanship, Uncle Sugar is happy and eager to make fleet vehicles out of every GM vehicle.  That's right, those Chevy Cruzes sitting in the grass at the dealership are already sold!

Wed, 04/09/2014 - 08:55 | 4638794 esum
esum's picture

in capitlism some companies make it and some dont....

GM is what happens when you fuck with the system...

GM failed in the first place due to stupid management, shit product and inability to compete. I leave unions out because its management's job to keep them in line with reality... 

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