By Dick Miller
WE.CONNECT.DOTS: Last Tuesday, a select committee of the House of Representatives dragged new General Motors CEO Mary Barra in front of national TV, knowing she would have no answers. On Wednesday a Senate committee did a repeat, asking the same questions and getting the same incomplete and evasive responses.
Obviously, the lawmakers had little intention of using the hearings to uncover information about the faulty ignition switches linked to 13 traffic deaths and/or GM’s slow walking the process to recall the vehicles and replace the switches.
Lawmakers were intent on grabbing face time on national TV. The exposure before gullible voters cannot help but advance their efforts to get re-elected. Beating up General Motors – or any company with deep pockets – can certainly lead to higher campaign contributions from their lobbyists.
The hearings were unlikely to produce new evidence. Lawmakers played to national TV as the main purpose. It was too soon to have answers of any substance.
GM executives are well aware of the dilemma they face. Someone screwed up in delaying the recall.
CEO Barra has already stated the company has no intentions of hiding behind the 2009 bankruptcy to resist liability. GM indicates it will honor financial claims for deaths and injuries proven to have resulted from the faulty switch. A reorganization bankruptcy normally provides a firewall for any liability claims arising after adjudication unless otherwise provided.
Forbes Magazine asked one day if “Barra (was) Being Thrown Under the Bus?” Then the next day, the Forbes headline was “Without Answers, GM’s Apologies Are Starting To Sound Hollow.”
Evidence that Barra was set up for the fall on this scandal is thin. Last October GM announced she would be successor to Dan Akerson. Barra formally assumed command Jan. 15, sooner than expected. Akerson’s wife has been diagnosed with Stage Four Lung Cancer and is undergoing treatment. Those that know Akerson claim he would never stick a fellow executive with such a problem.
Nevertheless, Barra was served up on a platter, less than three months on the job. Fortunately, for headline hunting lawmakers, Barra did not have answers this soon. Lawmakers wanted her to be little more than a pincushion.
GM has provided 200,000 documents to Congressional investigators. Lawmakers asked Barra if she had reviewed those documents in the short time she has been aware of the problem.
Later, lawmakers handed Barra a copy of a “smoking gun” document, signed by a mid-level engineer with apparent knowledge of the need to recall vehicles sooner. Barra was asked why the person was still on the payroll, but it was not established she had knowledge of either the individual or the document prior to the hearing.
Obviously Congressional staff had only recently discovered this scenario, which is why “mystery” engineer was not subpoenaed. No lawmaker wants to question a witness without knowing the answers in advance.
Questioning did vary from the House hearing to the Senate sideshow next day. . . slightly.
On Tuesday, information was introduced implying the replacement part for the faulty switch cost “just fifty cents.” Next day the cost had increased to a dollar. Obviously, both statements did not allow for the total cost of the recall, but rather were steps to grab a headline here or a sound bite there.
Bottom Line: The task of investigating for criminal or civil violations rests with the executive branch of government. Lawmakers are functionally limited to examining existing laws and regulations. GM’s lack of timely action is unforgivable. Ditto for lawmakers.
