Overregulation Anyone??

This is a picture of a Chevy Camaro. According to the Heritage Foundation, Chevy Camaros from 2013 and 2014 are being recalled for violating Federal Motor Vehicle Safety Standard No. 208—Occupant Crash Protection. The recall affects 18,941 cars.

Gene Blevins/Polaris/Newscom

So what is the problem with the car that constitutes a safety violation? The air bag warning label on the sun visor may peel.

The article reports:

The recall decision was made by the Executive Field Action Decision Committee, following a review by the Field Performance Evaluation Review Committee. So, pursuant to 49 CFR §573.6, the automaker submitted to the National Highway Traffic Safety Administration (NHTSA) its determination of noncompliance for the requirement that the visor label be “permanently affixed.”

GM also issued a stop delivery order to dealers, and instructed them to inspect the label on each sun visor (“using a finger nail, plastic card, or similar” to determine proper adhesion). In the event a label is prone to peel, the entire sun visor must be scrapped and replaced.

There are a few questions here. How is this recall going to impact GM financially? Would you bring you car in to the dealer if your recall notice told you the recall was about a label on the sun visor? Is this another example of the government overstepping its bounds and having a negative impact on the American economy?

We have done a lot in recent years to improve the safety of the American automobile. This is not an example of that.

 

 

 

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About That Successful Bailout Of General Motors

President Barack Obama, with Assembly Manager ...

President Barack Obama, with Assembly Manager Teri Quigley, drives a new Chevy Volt, during his tour of the General Motors Auto Plant in Hamtramck, Mich., July 30, 2010. (Official White House Photo by Pete Souza) (Photo credit: Wikipedia)

One of the accomplishments that President Obama is citing on his ‘stump speech’ is his bailout of General Motors. So far the taxpayer has lost about $25 billion on the bailout. I have posted a number of articles about the lack of sales of the Chevy Volt during the past year (you can use the search engine at the top of this site if you want to read them). The bottom line is that even with the government paying customers to buy the car, the car is not selling. There have also been a number of fires in the Chevy Volt after minor accidents.

Yesterday USA Today reported that General Motors is shutting down its Chevy Volt assembly line for a month and retooling it to produce Chevy Impalas.

The article reports:

“We are not idling the plant due to poor Volt sales. We’re gearing up for production of the new Impala,” Chevy spokesman David Darovitz said in an email.

Maybe I just don’t understand business, but it seems to me that if a car is selling well, you don’t suspend production of that car for a month.

 

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When Government Interferes In The Free Market

There will probably come a time in the future when we are not driving cars with internal combustion engines. I don’t know when that time will come, but I know it will come when an alternatively-fueled car becomes practical and economical. We are not actually there yet.

On Friday the Washington Examiner posted an article stating that General Motors is temporarily laying off 1300 employees due to lack of sales of the Chevy Volt.

The article reports:

The car company had hoped to sell 45,000 Chevy Volts in America this year, according to the Detroit News, but has only sold about 1,626 over the first two months of 2012.

“GM blamed the lack of sales in January on “exaggerated” media reports and the federal government’s investigation into Volt batteries catching fire, which officially began in November and ended Jan. 21,” the Ann Arbor (Mich.) News reported.

Under President Obama’s proposed budget for next year, the government subsidy for people who purchase a Chevy Volt will be raised to $10,000. I am not sure that will pass or will help if it is passed. I suspect the only way to sell them is to drop the price to about $20,000, which is about what average people actually pay for a car. Meanwhile, I wish the auto bailout money had stayed in the taxpayers’ pockets. 

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