Question: Does a for-profit company have a responsibility to the health and well being of the community in which it operates?
Prior to its bankruptcy, General Motors was involved in a partnership called the End of Life Vehicle Solutions Corp. (ELVS) which was created in 2005. The group’s mandate is to prevent mercury emissions from being released into the environment from crushed and shredded vehicles. About 36 million mercury switches were used in trunk lights and anti-lock brakes in vehicles built between the 1980s and the 1990s. And, it is said that more than half of these vehicles were made by General Motors before 2000.
The program is scheduled to run until 2017.
Anyway, during bankruptcy proceedings, the new General Motors dropped its obligation to work with ELVS. It claims the new company does not make mercury switches so it no longer has an obligation to assist ELVS.
The issue concerning General Motors obligations to ELVS has become important because of the Cash for Clunkers program. Used vehicles that are traded in for new, more fuel efficient vehicles are supposed to be destroyed and many of these cars have mercury parts. ELVS is involved with the recycling of mercury switches from vehicles traded in under the Cash for Clunkers program. However, it is running out of funds and says that GM, whether it is the old or the new, is obligated to fulfill its obligation.
Fifteen states require automakers to come up with a method to collect the recycled switches.
Our take? Is it fair for a company that was involved in the manufacturing of cars with mercury parts in the past to shed its responsibilities because it no longer makes vehicles with mercury parts? General Motors said that the issue belongs to the old General Motors which is currently going through liquidation. The more wehear about the bankruptcy agreement, the more concerned we get. The company has been able to cast off its obligations to members of the United Autoworkers and to its own franchised dealers. It has been allowed to walk away from cleaning up pollution at its old and closed plants. And now it appears that it is okay for it to walk away from a previous agreement to assist in the proper disposal of mercury from parts that are in vehicles it manufactured. Whether those vehicles were made prior to the year 2000 or not, should not matter. The so-called “new” General Motors needs to stand up and accept its obvious responsibilities and not hide behind a bankruptcy.