Feds To Investigate GM Over Recall, Congress To investigate Feds

Illustration for article titled Feds To Investigate GM Over Recall, Congress To investigate Feds
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1st Gear: Feds Look At GM's Recall

Illustration for article titled Feds To Investigate GM Over Recall, Congress To investigate Feds

Yeah, the GM recall ain't going away, and, as we reported yesterday, now the feds are getting involved.

Specifically, the Justice Dept. is going to open an investigation into how GM handled the recall.

Per The Detroit News:

Two people briefed on the matter say that a deputy chief of the office's criminal division reached out to lawyers last week gathering information for a possible subpoena to GM; that is a sign the office is mounting a preliminary investigation. The investigation is focused on whether GM notified NHTSA in a timely fashion about the switch problems.

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So that's happening and I assume it's all going to end right th– oh wait, what?

2nd Gear: House To Investigate Feds

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If you missed it yesterday Congress is ready to jump up and down on GM for how they performed. Also, they'll be looking at NHTSA.

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Per the Freep:

U.S. Rep. Fred Upton, R-Michigan, chairman of the House Energy and Commerce Committee, said the committee would examine why GM and the National Highway Traffic Safety Administration failed to act quickly when customers started reporting problems nearly a decade ago.

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3rd Gear: And In Other News...

Illustration for article titled Feds To Investigate GM Over Recall, Congress To investigate Feds
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So Fiat CEO Sergio Marchionne is gonna have to make do with just $5 million, a slight decrease from the year before.

Why? He didn't quite meet certain performance metrics for Fiat. Don't feel bad, he also got the right to receive about $25 million in Fiat shares but hasn't taken them yet.

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He also didn't take any money for any of his work for Chrysler, although I bet they pay for his Blackberry.

4th Gear: Who Would Buy Cars.com?

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We told you yesterday that Cars.com could be worth $3 billion, but who would buy it?

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Bloomberg reports that Cox Enterprises/Apax Partners — who already own AutoTrader — are interested in bidding for the site.

Cars.com is currently owned by a company made up of some of America's largest newspaper pubs who, I'm guessing, wouldn't mind the extra income from the sale.

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5th Gear: Skoda Has A Great Month

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Skoda, America's favorite Czech automaker, is well on their way to another strong year in an otherwise still weak European market with sales up 4.6% in February to 67,100 vehicles.

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While their best-selling Skoda Octavia was off a little for the month, and the Suberb was somehow down 23.3% despite being awesome, their Skoda Rapid was up a whopping 212.1% for the month.

Keep it up Skoda, we love you.

Reverse: The Italian Henry Ford

On this day in 1921, Giovanni "Gianni" Agnelli, the glamorous, powerful Italian business tycoon who turned Fiat, his family's car company, into an international conglomerate, is born in Turin, Italy. Agnelli was named for his grandfather, who founded Fabbrica Italiana Automobili Torino, later known as Fiat, in 1899.

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[HISTORY]

Neutral: How badly does this go for GM?

Normal bad, Toyota bad? How bad?

Photo Credit: AP Images

DISCUSSION

tommcparland
Tom McParland

1st Gear- In related news GM's bankruptcy may limit lawsuits related to the ignition problems.

Under the terms of its restructuring, GM's product liability extends only to accidents that happened after the reorganized company left bankruptcy in July 2009. Plaintiffs injured before that time would have to seek redress from the defunct shell of GM in Bankruptcy Court, where the chance of compensation is slim. Read more at Automotive News