Breaking. Per WXYZ TV Detroit.

Oh my goodness, I just can't seem to remember the FBI raiding GM or Ford suppliers during a recall.

This is out of control. Chicago politics at its worst and most flagrant.

I don't even recognize my country any more. This is almost exactly what Vladamir Putin did to that billionaire Petro-Tycoon a few years ago when he competed a bit to well against government entities.

Just Wow.

 

Read Atlas Shrugged

 

Since only 10% of the people think Congress is doing a good job, it's not surprising they're anxious to change the subject. When Rome began its decline Emperors made sure the people were provided with bread and circuses. It kept them distracted. You've just seen a modern version of a Roman circus.

 

The story

http://www.wxyz.com/news/story/FBI-R...uPAtBYikw.cspx

Read especially the 3rd paragraph.

 

Thank you, GreenRedTCH. It's an anti-trust investigation, not a safety investigation.

If this results in the price of vehicle electronics being more in line with the manufacturing cost, it could be a very good thing.

As we move toward fully electric transportation systems, the electric motors, batteries, computers, switches, and other electric assemblies, will become the majority of the manufacturing cost of a car.

A buyer can only compare prices effectively if the several sellers are not colluding to refrain from competition, and jacking up the prices of every option. This applies at retail, obviously. But it also applies to buyers of parts and sub-assemblies that go into larger products.

 

When company A owns a significant percentage of supply companies B, C, and D. Company A is able to dictate how many parts can be sold to their cross town rivals.

For instance. There is a company in the news lately that owns major stakes in the world's leading NiMh battery supplier. Company A has directed the NiMh supplier to not allow their rivals to become real competition. At any price.

Microsoft was investigated for this too.

 

Yes the article was clear that this is an antitrust issue and not related directly to the current recall campaign. And perhaps the timing is simply unfortunate. but it does seem like an awful lot of US FedGov heat is coming down on Toyota all of a sudden.

Didn't they ultimately nail Al Capone on tax charges?

And didn't Martha Stewart do time in Club Fed for telling a lie to an investigator and not for the actual crime for which she was being investigated?

All the sudden attention seems odd.

 

I call it pile on effect. Or David and Golliath. When you are big and wealthy and you bleed into the shark infested waters, in they come. Everybody has a slingshot and wants to knock you down.

In the late 60s GM had a big recall going on over breaking engine mounts and run away vehicles. At about the same time the government was holding anti-trust hearings. Then a congressional and NHTSA investigation of the Corvair in 1971.

It will get rougher before it blows over.