This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Michael Moore Jabs GM as Carmaker Dodges Blame

NEW YORK (TheStreet) -- What can you say to the families of the 13 victims who died as a result of faulty General Motors (GM - Get Report) ignition switches and airbags? What about the 31 victims of crashes?

"Sorry," just doesn't seem to cut it.

General Motors' brand new CEO Mary Barra faced members of the House and Senate at a two-day hearing that began Tuesday in response to a much-delayed recall of some 6 million vehicles.

Barra will answer a lot of question but they all boil down to one: "Why did it take so long?"

In a written statement, Barra says she doesn't have the answer for that-- but instead will tell you that GM's internal investigation will eventually flush that out. Additionally, she'll tell you how the company plans to rectify the problem.

But these words of reassurance could be a little too late for drivers.

Although the vehicles are no longer in production, prospective drivers may be rattled by the thought that the person driving a 2004 Chevy Malibu next to them on the freeway-could suddenly lose control of their vehicle and crash, due to faulty power steering.

The recall is also getting negative attention from Michigan native, Michael Moore, the documentary filmmaker, who is not exactly a fan of large Detroit-based corporations.  In a Facebook posting, Moore writes, "GM knew for 13 years that their cars had a defective ignition switch that would, well, kill people."

So, far investors aren't as jittered. Shares of (GM - Get Report) lost a modest 0.2% to close at $34.34. The automaker has already said it will take a charge of about $750 million against its first-quarter results to cover the recalls. That number includes $300 million already set aside for previously announced recalls.

Still unclear is whether former GM CEO Rick Wagoner will testify. Afterall, Wagoner was leading the automaker while those 6.1 million vehicles were in production under his watch.  As we all know, he is no stranger to congressional hearings on Capitol Hill.

At the time of publication, the author held no positions in any of the stocks mentioned.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
GM $30.96 1.40%
AAPL $92.50 -0.79%
FB $119.40 1.30%
GOOG $711.37 1.40%
YHOO $37.22 0.77%


Chart of I:DJI
DOW 17,725.70 +64.99 0.37%
S&P 500 2,054.53 +3.90 0.19%
NASDAQ 4,727.9340 +10.84 0.23%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs