Autoblog

Report: Ralph Nader urges government to postpone GM IPO

Jeff Glucker — Fri, 12 Nov 2010 11:29:00 EST

Filed under: Government/Legal, GM, Earnings/Financials

Ralph Nader has written a letter to President Barack Obama, urging him to delay General Motors' IPO. According to The Detroit News, his fear is that the automaker is still the "same old arrogant GM" and that the government stands to lose a bundle on the sale of its stock.

Nader is not alone in his criticism. His letter is signed by Public Citizen President Robert Weissman, Center for Auto Safety Executive Director Clarence Ditlow and former Public Citizen president Joan Claybrook. The group suggest that GM is taking steps that undermine the Obama administration's efforts after it was directly supported by the government and U.S. taxpayers. It feels that General Motors should not be lobbying congress while owners by the government. Per Nader, "They are lobbying against Obama's own policies on fuel efficiency, auto safety."

In his letter, Nader also states,

"The primary rationale of investing in GM had to be to preserve jobs and prop an economy in a severe downward spiral. As majority shareholder in GM, the United States has the ability to direct or influence the company's investment decisions. As the U.S. reduces its share, so its capacity to influence such decisions diminishes."

Ralph Nader knows that this letter is a Hail Mary attempt to delay General Motor's IPO, but he is hoping for some congressional support to build momentum. What do you think about Nader's move? Have your say in 'Comments.'

[Source: The Detroit News | Image: Brendan Smialowski/Getty]

Report: Ralph Nader urges government to postpone GM IPO originally appeared on Autoblog on Fri, 12 Nov 2010 11:29:00 EST. Please see our terms for use of feeds.

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NHTSA reportedly asks for GM, Ford and Toyota data in Jeep probe

Jonathon Ramsey — Thu, 28 Oct 2010 15:58:00 EST

Filed under: SUV, Government/Legal, Safety, Jeep

The Center for Auto Safety, a group founded by Ralph Nader and the Consumers Union, have reportedly filed a 69-page grievance with the National Highway Traffic Safety Administration requesting they investigate the 1993-2004 Jeep Grand Cherokee. The Center maintains that in a rear-end collision, the placement of the fuel tank below and just ahead of the rear bumper has made the SUV more prone to fires. According to the Center's figures, that model Grand Cherokee suffers six times more fires than more recent models, and five times more fires than the competition's SUVs.

NHTSA has already begun its inquiry, so far finding that the Jeep SUV's fire incident rate is about the same as with its competition. However, NHTSA is now said to be seeking information on the 1993-2004 Chevrolet Blazer, 1993-2004 Ford Explorer and 1993-2004 Toyota 4Runner hoping to get a better look at defect and warranty claims and lawsuits. None of the other companies, General Motors, Ford or Toyota, has commented on NHTSA's request for information. Chrysler moved the gas tank on the Grand Cherokee inside the frame on the 2005 model, and says it is cooperating with the government's probe.

[Source: The Detroit News]

NHTSA reportedly asks for GM, Ford and Toyota data in Jeep probe originally appeared on Autoblog on Thu, 28 Oct 2010 15:58:00 EST. Please see our terms for use of feeds.

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Ralph Nader calls out Toyota on R&D spending

Jonathon Ramsey — Sun, 17 Oct 2010 14:07:00 EST

Filed under: Safety, Videos, Toyota, Earnings/Financials

Ralph Nader challenges Toyota's R&D spending claim - Click above to watch commercial after the jump

Ralph Nader isn't finished. The man whose fame has long outlasted the first car he took to task is now gnawing at Toyota over claims the company makes in its print advertising: "That's why we're spending a million dollars an hour on research and development." In a letter Nader wrote to the U.S. sales chief Toyota, Jim Lentz, he states that an $8.7 billion investment in R&D is "astonishing," and he'd like to know precisely how that amount is spent.

The larger issue, however, might be Nader coming so late to the game. After all, Toyota released a commercial in June in which the narrator says, "At Toyota, we care about your safety. That's why we're investing one million dollars every hour to improve our technology and your safety." Everyone, including the New York Times, wanted to know how Toyota could be spending a million an hour on safety.

A Toyota rep responded to the NYT by saying "The $1,000,000 an hour claim represents all Toyota R&D spending globally, much of that allocated to new quality and safety technologies." True, that doesn't exactly answer Nader's question since he moves the discussion from spending on safety to spending on R&D, but the claim relies on how Toyota defines R&D. Even though Nader says the term "has a specific meaning," it's amorphous enough that we're sure Toyota can defend it... if that's even necessary. Lentz says he'll respond to Nader directly.

[Source: USA Today]

Continue reading Ralph Nader calls out Toyota on R&D spending

Ralph Nader calls out Toyota on R&D spending originally appeared on Autoblog on Sun, 17 Oct 2010 14:07:00 EST. Please see our terms for use of feeds.

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NHTSA announces 2009 fatalities lowest since 1954, continue downward trend

Jonny Lieberman — Thu, 11 Mar 2010 17:30:00 EST

Filed under: Government/Legal, Safety

Safety doesn't sell cars. At least that's what Detroit executives walked around saying back in the 1950s, 1960s and 1970s. The whole of them were convinced that if you even mentioned the word "safety" in a marketing campaign it would imply that cars were unsafe. In fact, it took a crusader like Ralph Nader to stand up to the auto industry and say enough with the death traps, like he did when he published his infamous Unsafe at Any Speed (only one chapter is about the Corvair!) in 1965. Like him or loathe, if you've walked away from a serious car accident in the last forty or so years, you probably owe him.

And it looks like many more of us have been walking away from car accidents lately. According to a new report from The National Highway Traffic Safety Administration, the death rate for calendar 2009 plummeted by a frankly significant 8.9-percent from 2008. 33,963 Americans were killed on our roads last year, as opposed to the 37,261 people that perished in 2008. Still terrible, but much, much better. In fact, 2009's fatality rate (measured with the totally morbid metric, "death per mile") is actually the lowest such rate since 1954. Were cars safer back then? No, not even kinda sorta. It's just that a much smaller percentage of the population drove back then. The Interstate system was still two years off, so road trips were rare and mostly for truckers and beatniks.

Why the drop in the death rate? Many factors. Cars are getting safer. More air bags, crumple zones, better construction techniques, stability control, better tire technology - all of it is adding up to help prevent accidents, or at least make them more survivable. Also, campaigns like "Click It or Ticket" have increased seatbelt usage, and cops nationwide are cracking down harder than ever on drunk drivers. However, there's one other reason the death rate fell so far in 2009: people drove less. Meaning that if our economy recovers and we start driving more, the death rate could - and probably will - increase. Make the jump to read the press release.

[Source: NHTSA | Image: Bantam Dell Publishing Group]

Continue reading NHTSA announces 2009 fatalities lowest since 1954, continue downward trend

NHTSA announces 2009 fatalities lowest since 1954, continue downward trend originally appeared on Autoblog on Thu, 11 Mar 2010 17:30:00 EST. Please see our terms for use of feeds.

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Unlikely Ally: Ralph Nader addresses Capitol Hill over likely GM bankruptcy

John Neff — Tue, 19 May 2009 15:28:00 EST

Filed under: Government/Legal, GM

Ralph Nader, the man who single-handedly sank the Chevrolet Corvair by exposing its safety faults in his book Unsafe At Any Speed, has unexpectedly appeared at the side of General Motors. In a letter written to Senator Chris Dodd, Chair of the U.S. Senate Committee on Banking, Housing and Urban Affairs, and Barney Frank, Chair of the House Committee on Financial Services, Nader warns the Congressmen about the risk of leaving GM's fate in the hands of the Auto Task Force, or what he calls "a small unelected and largely unaccountable group arranged to avoid the Federal Advisory Committee Act."

In truth, Nader is not necessarily sticking up for GM, but as a consumer advocate he's more interested in protecting tax-payers and the thousands -- if not millions -- of families that could be harmed if the Auto Task Force makes a misstep on its march towards an increasingly likely GM bankruptcy. His solution? Get Congress involved through more oversight of the Auto Task Force's decisions and urge the administration to postpone any irreversible decisions until they can be carefully reviewed in Congressional hearings. Of course, this delay would mean that GM needs more bridge loans to survive the interim, but as Nader reminds us, "the virtually condition-free Wall Street" bailout has cost much more. Follow the jump to read Nader's letter for yourself in its entirety.

[Source: Nader.org | Photo Source: Brendan Smialowski/Getty]

Continue reading Unlikely Ally: Ralph Nader addresses Capitol Hill over likely GM bankruptcy

Unlikely Ally: Ralph Nader addresses Capitol Hill over likely GM bankruptcy originally appeared on Autoblog on Tue, 19 May 2009 15:28:00 EST. Please see our terms for use of feeds.

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Nader wants FCC to probe GM's radio ties

Damon Lavrinc — Sat, 18 Aug 2007 16:34:00 EST

Filed under: Government/Legal, Marketing/Advertising, GM

In a letter to the FCC, Ralph Nader, the world's most visible consumer advocate, has requested an investigation into the advertising practices of General Motors with regard to several radio personalities.

The letter from Nader was prompted by an Automotive News article entitled, "Puff Piece. Rush Limbaugh is one of the radio personalities GM is working with to talk up its vehicles" (sub. req.). The article goes on to detail how the General has supplied DJs, broadcasters and Limbaugh with test vehicles, private meetings and VIP tours of GM facilities.

Nader contests that this type of promotion may be against FCC laws requiring disclosure of payments for endorsements. Some choice quotes from Limbaugh include, "GM has a ton of momentum," and, "GM cars and trucks have never been better."

Whether or not an investigation will take place is up to the FCC, but General Motors made it clear in a statement that everything they've done with broadcasters is above board and meets with the FCC's regulations.

You can read Ralph Nader's letter in full by following the jump.

[Source: Automotive News - Sub. Req., Nader.org]

Continue reading Nader wants FCC to probe GM's radio ties

Nader wants FCC to probe GM's radio ties originally appeared on Autoblog on Sat, 18 Aug 2007 16:34:00 EST. Please see our terms for use of feeds.

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U.S. Supreme Court rules in favor of DCX on Ohio tax incentives

John Neff — Tue, 16 May 2006 09:34:00 EST

Filed under: Government/Legal, Daimler

Yesterday the U.S. Supreme Court overturned a decision by the Sixth U.S. Circuit Court of Appeals that ruled the state of Ohio's decision to use tax incentives to attract DaimlerChrysler's business was unconstitutional. Ohio had granted DCX an investment tax credit after the company decided to build its Toledo North Assembly plant in the state but a "taxpayer group" headed by who else but Ralph Nader challenged it. DCX sees the ruling as a victory for America that will help keep investment and jobs within our borders in an increasingly competitive global market.

A statement made by Ohio government Bob Taft reveals that the tax in question levied against an incoming company's machinery and equipment is no longer in effect anyway, though the Supreme Court's ruling means Ohio will be able to honor the incentives it had offered other companies in return for their investment in the state.

[Source: DaimlerChrysler]

U.S. Supreme Court rules in favor of DCX on Ohio tax incentives originally appeared on Autoblog on Tue, 16 May 2006 09:34:00 EST. Please see our terms for use of feeds.

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Nader returns to the automotive fold

Joel Arellano — Wed, 29 Mar 2006 10:31:00 EST

Filed under: Classics, Government/Legal, Plants/Manufacturing, Safety

He's back and with a vengeance.

Consumer advocate and former presidential contender Ralph Nader is refocusing on the automotive industry, a move that brought him critical acclaim back in the Sixties. According to the Boston Herald, Nader accuses the U.S. government of acting as a "consulting firm" to the National Highway Traffic Safety Administration (NHTSA), insurance agencies of failing to promote greater safety and government agencies of continuing to use substandard vehicles. (See here for the Autoblog post and link to the report.) And he wants to establish an office in Detroit, Michigan, U.S., to monitor the automakers.

The NHTSA has already fired back, pointing to all-time low fatality rates and the high rate of seatbelt use by vehicle occupants. Automakers are also defending themselves, noting that side air bags can be found in about seventy-five percent of today's vehicles and are set to be standard by 2009. According to automakers it's the public, not the government, who is demanding these features. We think what they're trying to say Ralph is, "See? The free-market economy does work on its own sometimes."

[Source: Associated Press via the Boston Herald]

Nader returns to the automotive fold originally appeared on Autoblog on Wed, 29 Mar 2006 10:31:00 EST. Please see our terms for use of feeds.

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