POLITICS - Congressional Roadblock Threatens U.S. Transportation Infrastructure

Hay, the U.S. economy is still weak, now this Congressional (read Republican) roadblock will make it worst.

Hint to Congress (Democrats AND Republicans), this is worth whatever the cost.  Not paying for it will shortchange the economy.

"Construction companies relying on federal Highway Trust Fund face Congressional roadblock" PBS NewsHour 7/11/2014

Excerpt

JUDY WOODRUFF (NewsHour):  The Federal Highway Trust Fund, which pays for the building and fixing of many of the roads and bridges in this country, is running out of money.  Congress has only a few weeks to figure out how to keep it going.  And if it doesn’t, it could cost thousands of jobs.

The NewsHour’s Quinn Bowman traveled to West Virginia, where he looked in on one project dependent on the funds, and he talked to West Virginians who could be affected.

GARY TAYLOR, President, Bizzack Construction:  We’re in Logan, West Virginia.  This construction project is part of the Route 10 relocation.  It allows the traveling public to go from Man to Logan.  Ten millions cubic yards of excavation and, contract-wise, it’s about $75 million.

QUINN BOWMAN (NewsHour):  Gary Taylor’s company, Bizzack Construction, is part of the team turning this winding two-lane road into a new one double in size.  Much of the money for this and projects like it nationwide comes from the Federal Highway Trust Fund.

It was created in 1956 to finance and maintain the federal highway system, and relies on a gasoline tax, now pegged at 18.4 cents a gallon.  The revenue goes to reimburse states, which, in turn, pay companies like Bizzack for construction and maintenance.  But the fund has been spending more than it takes in for years, as inflation eats away at the value of the tax and increased fuel-efficiency reduces gasoline usage.

The money will start to dry up in August, but Congress is deadlocked over what to do.  Democrat Nick Rahall has represented West Virginia’s 3rd Congressional District for 38 years.

GENERAL MOTORS - Can They Survive 14 Million Recalls?

"Growing list of recalls may be more than a bump in the road for GM’s reputation" PBS NewsHour 5/21/2014

Excerpt

JEFFREY BROWN (NewsHour):  The latest addition to GM’s ever-growing list: 218,000 Chevrolet Aveos recalled just this morning.  They have a dashboard lighting module that could overheat and catch fire.

A day earlier, the company told customers to bring in nearly 2.5 million vehicles for seat belt, gear shifter, and other mechanical problems.  It all started in January, with nearly 2.6 million vehicles recalled, for ignition switch defects going back a decade, and linked to 13 deaths.

GM’s new CEO, Mary Barra, faced senators in April.

MARY BARRA, CEO, General Motors:  Sitting here today, I cannot tell you why it took years for a safety defect to be announced for this program, but I can tell you we will find out.

JEFFREY BROWN:  By now, GM has called back nearly 14 million vehicles, the most ever in a single year.  The 29 separate actions include last Thursday’s recall of 2.7 million Chevrolet, Saturn and Cadillac models for taillight and other malfunctions, the March 13 recall of 1.7 million Buick, GMC and Chevrolet vehicles for brake and air bag problems, and the March 31 recall of 1.3 million Chevrolets, Saturns and Pontiacs for power steering issues.

Last Friday, the government fined GM $35 million for concealing the ignition switch problem.

WALL STREET - Going More Deeply Into Max GM Fine

"Federal government hits General Motors with $35 million fine" PBS NewsHour 5/17/2014

Excerpt

SUMMARY:  The federal government issued a record $35 million fine against General Motors on Friday for to the automakers slow response reporting faulty ignition switches -- a defect that has been linked to 13 deaths.  What’s the latest on the massive recall?  Hari Sreenivasan speaks with Micheline Maynard, who has covered the auto industry for many years, about the fine and this developing story.