tv The Willis Report FOX Business November 19, 2014 5:00pm-6:01pm EST
they can force them to provide information. they can seek criminal penalties. i think that they can win. they can't force a recall. can they? >> they can. they can force a recall. they have a public hearing. you think they would -- do you fines come first or the court? >> the court generally comes first then a lot of fines after that. gerri: takata is really in disarray. this is a closely held
company. based in japan. family owned. apparently having financial difficulties now. could it survive the massive recalls to come. >> i don't know an answer to that. they have other business. they make se seat belts. this is massive. we don't know what the defect is and how many air bags of one type or another is affected by the defect or defects. it could be multiple. gerri: we've heard lots of stories of what the problem might be. that these pallets might be badly made or deteriorate over time or especially in human conditions. we don't really know. i want to remind our viewers, you can go to gerriwillis.com. we have the complete list. it's a long list, joan. we're talked about a lot of cars. we've had 17 million, i believe, recalled worldwide.
takata says they're not happy with the way it's being done. the real problems they say are in humid areas. what do you say to that? >> well, the reason that they are concerned about humidity is because of the formulation of the chemical. i issued an air bag rule back in 1978, '77, we used a chemical -- we relied on a chemical formulation that was not sensitive to humidity. or so unstable. so i think it depends on what they actually use in this chemical mix. and it can be changed -- gerri: you said something smart to our producers. if humidity is the issue, it's not enough to have a regional recall. i can always take my car from the northeast and drive to florida. right? that doesn't make sense. >> oh, yeah. regional recall was a concept made up by the manufacturers to save money, and we've been
fighting about it for a long time. now, we see it in its raw state. that it's ridiculous. it makes no sense whatsoever. gerri: joan, apparently some senators on this committee that will have a hearing tomorrow believe there may be yet another death that's occurred because of the takata air bags. that would bring the deaths to six. there might be many more. this is at least a ten-year event that's been going on. >> i believe there are many more. and a lot of them probably weren't reported properly. there will be more coming in the future because it's going to take a year or more to replace these air bags. one of the problems is, we don't know exactly what is wrong with the air bags now. what will be replacing them? do we know the chemical formulation of the other air bags? what about the cylinder that falls apart and off into shards. should that be replaced?
yes, i think so. we don't know what the cars will have as a replacement system. >> the reason nhtsa took the step, this additional step of calling for a nationwide recall is because there was an accident in north carolina that appears to be caused by one of the air bags. and, again, you know, this isn't necessarily the most humid place in the world to be. it seemed to prove there was an issue beyond the humidity issue. joan, to you, because you were good on the topic of nhtsa. we have gm which pales in comparison of what takata could be. what's wrong with nhtsa, with the car industry that we have problem after problem -- these aren't small problems. this isn't a seat belt that doesn't retract. these are life-threatening issues that are killing people. why is it happening? >> well, i think that many of the people who run that agency, don't think of themselves of
the person on beat. a lot of people don't like to be criticized and be unpopular. the fact is this is a regulatory agency, the meaner it is with the manufacturers, the more it pushes the manufacturers to do the right thing, the less cost to the manufacturer in the long run. the more safety you have for the public. this hasn't been happening. i think david freedmen who came in only a year ago has had a very rough entry. (?) and, but i think he's beginning to get the message. these manufacturers will delay and postpone and whatever will save costs as long as they can possibly get away with it. nhtsa should want let them get away with it. they should be the cop on the beat. gerri: wow. too cozy with the car companies. thank you very much. >> okay. thank you. gerri: let's bring in lauren fix. she's the car coach with advice for consumers tonight as we mull what
should be might be, a car recall coming up. i know you're out at the la auto show. the story we're dealing with tonight. very, very serious. i don't know if you've heard joan, but she seriously criticized nhtsa, they're too cozy with car makers. do you agree? >> i agree with her. the truth is, right now when you're looking at nhtsa, they should have made a recall on this a long time. when one person days, okay, we need to look into it. when there's two or three and potentially six is what we're hearing, five confirmed and a lot of injuries, this is a worldwide problem. we're talking about 10 million cars in the us and potentially as many as 16 million across the world. this is a problem that needs to be addressed. people to be more confident in the cars they're purchasing. gerri: amen. i want to get back to what causes this.
do you feel tonight that you understand what's causing these -- these bags to deploy in the way they do sending metal shards in the interior of cars. one women who was killed, the cops who came to investigate the crash originally thought it was a homicide because it was like daggers. lacerations. they thought someone had tried to kill her. not true. what is the cause of this? >> the air bag itself we're talking about is when these air bags deploy in an accident situation, it's the metal frame holding the bag into the steering wheel. they're getting messages to deploy. it's letting the whole framing go. we found in the past, and we discussed this, that it has to do with the moisture. but now they're finding it in arizona. arizona is not considered the most moist state on the planet. gerri: north carolina.
>> north carolina isn't either. yeah, when you're thinking about people live in new york that drive to florida on a regular basis, they're experiencing moist. could be a used car that spent its life in the bottom part of country and sold up north. it could be any vehicle. we need to have full access to takata's paperwork. gerri: a lot more to come. i want to remind our viewers because i know a lot of people out there tonight are like, what makes and models? is it my car? we have the whole list on gerriwillis.com. these are not late-models. 2003, 2004, way back there, if you have a car you're worried about in your driveway tonight, go to gerriwillis.com. before you go, lauren, headlines about toyota and honda, they're trying to get other suppliers of air bags in that might be able to help with this. because my question to you tonight is: it's
all well and good to send me to get new air bags. is takata making them? can they make enough? the company seems like they're under a lot of pressure here. can i get this work done on my car? >> well, this is the problem. there aren't enough air bags in the system right now. if they were to switch suppliers because the way things work in quality control, it would take two years for them to get approved. there's so many different makes and models. whether a honda, toyota or whatever it might be. they have to get that specific one for that year, make, and model. if it's not on the floor, they don't make it any longer, or limited production of them. they have to pull out old altogether to make it. this is where the dilemma is happening. go to auto live or other manufacturers like delphi, it would take almost two years. bloom that you will and markey are saying. [no audio] gerri: i think we just lost
lauren. that's too bad. interesting stuff. she was coming live from the la auto show. a lot of good information on these cars on takata air bags. we'll be covering more of it on the show. and we've got more to come this hour, including your voice. your voice is important to us. that's why during theow, we wano facebook me or tweet me at gerri willis fbn. at the bottom of the hour we'll read your tweets and emails. the showdown making its way to capitol hill -- the senate puts takata in the hot seat. one of the lawmakers joins us next stay with us
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gerri: well, we've been talked about the faulty takata air bags. we could get answers from the company itself tomorrow. they will testify before a senate committee on those defective air bags. dean heller of nevada who will be attending the hearing tomorrow. senator, welcome to have you on the show. >> thank you. good to be on the show. gerri: what are your expectations tomorrow?
here's a guy -- here's somebody we've wanted to see for some time. because this has been an ongoing issue. according to the reporting in the new york times, this issue could be as an old as ten years. a decade. >> this must be the year of the air bag. gm the air bags wouldn't deploy. now, the air bags are deploying and they're throwing swrap knell in the cars. i'll be the ranking member of the subcommittee on consumer protection. i have an interest on the change of leadership and the majority. i may be chairing this thing. i want to bring takata in front of us. we have several manufacturers that will be discussing this also. this goes all the way back to 2004. what do they know? when did they know it? obviously we'll have nhtsa in front of us. the administration arm of keeping an eye on this. we'll find out where they are and what they knew and when they knew
it. anyway, a lot of questions. a lot of discussions. hearing is tomorrow. i'm looking forward to it. gerri: we just had joan on. she was talking about former nhtsa official how she believes there may be many more deaths. there are five deaths from these air bags. they deploy, shoot shrapnel and people get stabbed by their own car. there are conversations that maybe there's this sixth person out there. some of this may be made public. are we going to find like gm, lots of other people that have been harmed and injured and nobody knew what was causing it? >> that's a great question. that's how it started with gm. it grew and grew. it became something quite big. i think we may be just the tip of the iceberg in this case. takata has a lot of questions they need to answer. we have to find the answers and figure out what we need to do about
this. i'm tired of just fining companies. that's all we're doing. just large fines. we need to stop this from happening in the future. some of us will work together. senator nelson and myself from florida. the new chairman coming in, john are looking at new legislation so we can get these answers before they actually occur and stop some of these deaths. gerri: this is really a one-two punch for nhtsa. gm was horrible. this went on for years. gm knew about it. it was talked about inside. now, we find the exact same thing with takata. what is going wrong in the auto industry that is causing this to happen and regulators to be completely asleep it the wheel. >> we haven't had a chairman at nhtsa for over a year. that may be part of the problem. there may be an announcement in the next
24 hours of a new administrator, and i'm hoping that's the case. we may see that here. gerri: a new administrator. who would that be? >> i don't know who it would be. i'm hearing rumors something may be announced within the next 24 hours. gerri: i believe the current administrator has not been in the office for very long. >> and is not an administrator. this was somebody that was an acting administrator that went back to his old job. we don't have an administrator at this point at nhtsa and haven't had one for over a year. i'll leave it up to the white house. i think this gentleman or woman, whoever it will be, will come in front of the commerce committee right away. that's a ke piece of the pie. gerri: we'll be watching every minute of these hearings and seeing exactly what you do. thanks for coming on. >> very happy to come
back. gerri: appreciate it. later in the show, things are going from bad to worse in buffalo as another storm is heading its way bringing another 3 feet of show. first hand account of someone in buffalo, bill player dean bloomfield. new polls americans aren't ready to shop until they drop next week. is this the end of black friday as we know it. say it ain't so. ♪ ♪
monday this year. does this mean the end of holiday shopping? brian gyldenberg, the chief knowledge officer. welcome to the show. good to see you, brian. so this is a real change in trends with consumers. i always think people are excited about black friday, cyber monday. not anymore? >> i think they are. but, you know, i don't know if the majority of americans ever shopped on black friday. gerri: good point. >> the interesting thing is when we look at shoppers, it's interesting to see, it's actually the excitement is a bigger part they go for the deals. they like to be part of the mob. gerri: it's entertainment. you go in and these people are appealing -- the retailers are all about you. and it's fun. i think for some people. not for me. i just can't deal with the reality of shopping. >> the mad dash. but that seems to be a lot of it. if you're looking right now. i think some of the, not the backlash, cost them
a couple of things. first of all, shoppers, over half of american shoppers today don't believe the retailers when they say these are the best prices you'll get during the holidays. gerri: they've lost credibility. >> on black friday specifically. you've got two trends. they're doing it earlier. the chief merchant at walmart, black friday we should just call it november. that's basically what our promotional cycle is. gerri: we've been covering it for weeks. everyone is moving out their sales earlier and earlier. here we are at school shopping, and there's christmas. >> yeah. it was terrifying how early christmas trees got into stores. the second thing, the other big trend, this is important to keep an eye on. this year in particular you'll see a number of the retailers online start to do aggressive promoting about the week before christmas. they'll try to avoid what happened last year. everyone bought their stuff on the 23rd and it overwhelmed ups and fedex.
i think what you've seen over the last few years, there's a gap between black friday and cyber monday. there's a couple of weeks where nobody does anything. i think the consumers have learned they can wait the retailers out a bit. gerri: ultimately, the nrf said sales will rise 4 percent this year. will it be better or worse? >> i think 4 percent is a reasonable number. if you look at some of the trend year over year. that seems about right. it will be interesting to see where it ends up. got a number of retailers that take a bigger share of the holiday share every year. gerri: you're in the best position to answer this question. the very best holiday deals, where do we go? >> it all depends where you want to buy and how willing you want to take the chance to wait. walmart will always be aggressive on price. if you look at the retailer this year that gets a lot of energy around black friday is
macy's. shoppers will use macy's more this year than last year. gerri: thank you for coming on the show. good to see you. another storm. this one packing three more feet of show. heading buffalo way. bills player deonne broomfield. ice skaters are okay. nail clippers are not. what you can and cannot take on your next flight thanks from a new announcement from the tsa. stay with us. ♪ ♪
the news comes ahead of tomorrow's senate hearing on this very issue. president obama nominating rosekind to lead the national highway safety administration. if you were listening just moments ago, senator heller told us this would happen. we didn't know it would happen so quickly. we'll get you more deals. frigid cold weather gripping the nation tonight after plunging all 50 states below freezing last night. the big story is a snowstorm bigger western new york in 6 feet of snow. the national guard has been activated in the buffalo area. closed off trapping countless cars and a college basketball team in the process. look at those pictures. a second storm is expected to pound the same region tomorrow. they're predicting two to 3 feet for snow. that's four days before the bills take over the
jets. deon broomfield joins us now by phone from the confines of his house. can you not get out? are you trapped there, deon? >> i'm trapped right now. i'm actually outside trying to dig out me and my roommate's car. gerri: how deep is it? >> my whole car was covered. you couldn't see the car at all. so the blowing snow made the car disappear totally. >> so we're showing pictures right now of you trying to dig out. it looks like, whoa what a mess. you're not from around here. right? you're from florida. is this disconcerting. >> i haven't seen snow like this. i went to school in iowa state. i was familiar with this kind of weather, but this kind of storm was just outrageous. gerri: now, i understand that the bills are hiring people to shovel out where you're going to be playing football, the stadium, and they'll give them
free tickets. do you think you guys will actually be able to play? >> you know, i have no idea actually. you know, the officials with the bills say it's the most snow they've seen. i know they're talking with officials at the nfl that, you know, figure out what's going to happen this weekend. it's up in the air. >> we can't give up football. you guys have to figure out a way to play. >> yeah, we'll find a way to play on sunday. it will be just a matter of where at and what time. we'll be playing. gerri: so we're showing pictures of ralph wilson stadium and the grounds crews trying to get rid of this snow. i understand there were 220,000 tons of snow removed from the stadium, astonishing. rugs talkinare you guys talkingo each other? texting each other? are you able to practice? >> no.
they sent over the game plan and all the specifics of what's going on through the ipad. everyone on the team, they got the game plan this week for the jets. we're doing it digitally right now. gerri: you guys don't need to practice. [laughter] that's okay, isn't it who will win the game, by the way? >> you know, we'll just have to study hard. since you can't get the physical rest right now. hopefully tomorrow we'll be able to line up on the field. >> but who is winning, you or the jets? >> no predictions from me. gerri: really? i'll make the a prediction. i think you guys will defeat them. one woman's view. i'll be watching. >> all right. thank you. gerri: deon, thank you. wow. that's a lot of snow. well, a fox business alert for you now. it may cost you more money to fly jetblue.
jetblue says it will create three ticket classes and only the top two will include a free checked bag. jetblue executives haven't given a price for the bag said it will fluctuate with demand since fewer than half customers check a bag. this will leave southwest the only airline allowing people to check a bag for free. jetblue is stacking the plane with more seats. it will add six more seats reducing average leg room by an inch. the changes start in 2016 darn it. thanksgiving is next week. the tsa is giving reminders on what's okay and what's not okay to bring on the plane. here with more is travel expert kendra, thorton. kendra, thank you for being on the show. this list is pretty shocking. i got to tell you, i had no idea what people could bring on, and i had no idea that some of
the no-noes -- peanut butter. you can't bring that on the plane. why? >> there are a lot of surprises on there. it's important to talk about this. peanut butter, when it comes to the thanksgiving holiday, people will bringing home baked goods after the holiday or they'll be wanting to bring things with them to the holiday. those souvenir foods like maple sewer up. who will bring a small amount. no all of that stuff (?) would have to go in your checked bagging being bags. you can bring pies on board with you, if you want. you can bring your pumpkin pie with you on the plane. >> aerosol cans. forget the aerosol cans. that makes sense, i guess. >> some people think just because it's under 3.4 ounces, they can bring aerosol cans. no aerosol cans.
>> i have little hair spray cans. and that's a no-no, i guess. how about liquid bleach. why? >> some people may think they want to do laundry or the holidays or any time. you can't bring liquid bleach. you can't bring it even if it's 3.4 ounces. leave it at home. buy it wherever you're going if you need it for that laundry. gerri: i'm shocked you can't bring on nail clippers. this seems like -- really? i can't bring on nail clippers. that's something i might need. >> you can't. if they catch them, they will take them away. gerri: toy weapons. let's say i have a kid's play gun, can't do that either. >> even a kid's little saw or knife, all of that stuff -- i have an 8-year-old son. he can't bring these things. even a toy bat cannot be
brought on. all those toy weapons or things like that, yep, not allowed. gerri: well, i'll be bringing golf clubs. i hope that's okay. >> it's not okay with your checked bags. the only athletic thing you can bring is a tennis racket. otherwise, it will have to be checked. gerri: knitting needles which seems dangerous. and ice skates. talk to me about that. >> the tsa has these reasons for these approved guidelines. it's okay. you can carry on your ice skates with you if you need them. gerri: go right ahead. >> i don't know who would want to, but you can. gerri: and fliers. that seems like an obvious no, no. wrenches and pliers. >> they'll still allow you to bring them with you. gerri: if i want to see everything, where do i go. >> go to tsa.gov they have everything there. if you make a mistake and you have some of this stuff that's not
allowed, of course, they'll give you the chance to put it in a checked bag. or there's usually some us ps stations where you'll be able to ship this to your destination or back home. don't panic if you make a mistake. like you said, go to tsa.gov and there will be a list. gerri: new yornew york city's jk collects 4 tons of prohibited items every year. lot of stuff. thank you for coming here and talking to us about it. now, we want to know what you think. here's our question tonight: have you ever had anything confiscated by the tsa. i'll show you the results at the end of tonight's show. i've had stuff confiscated. nick said, never have. it's amazing what people think they can carry on a plane. rick writes: bottle of water in bag.
tsa had me to say it in the trash. if it had been explosive, wouldn't it have blown up. last night a too large toothpaste treated me like i was al capone. eric: just my dignity. in addition to following me at twitter and facebook, be sure to like fox business on facebook. here's some of your emails about health care. this is the company wellness plan. ella, you've expressed honey we will should not have a wellness program, i'm definitely opposed to your opinion on this. the rest of us have to pay for the irresponsibility of other citizens. it's the same in a company. i resent paying for their lifestyles. i wasn't against every aspect just the ones that invade our privacies. they should demand
employees go under health tests. if you smoke and i don't, i have to pay higher premiums because you are an addict. taking responsibility for your own health is the first requirement. robert says: yes, employers should have a say because your health and affects company's bottom line. people who are sick because of not taking care of their health, weight and exercise are a burden to company's bottom line. wow. i don't agree. i don't think you should know everything about me. i love hearing from you. send me an email go to gerriwillis.com. hear from volkswagen from the la auto show. is it worth it? we look at a growing new trend of college counselors. do they help your kid get into the school of their dreams? here's your consumer gauge with the numbers that mean the most to you. we'll be right back.
gerri: the stress and the fear of getting into college is becoming big business for an emerging group of college consultants. the profession promising people to get into the college of their choice is exploding, but as student debt soars, should families shell out even more money for advice on planning. author of the book, the best 379 colleges. rob, before we get to you, i have to say this, you are in this industry. you're not even like the fly on the wall who can talk about it. you're deep in this. you have some 30 advisors that people can hire. >> we have college y. thirty counselors doing anything from interview help -- gerri: how much you charging me? >> little as $250 just up to $4,000.
gerri: i can do this on my own. why do we have to pay more money for services that ultimately -- if your child can't write the essay, they shouldn't be going to college. >> i hear you, so many free services. prince review does everything as that. when we talk about the average kid, 470 kids to every guidance counselor nationally. so when you start to think about the aid that a student can get friday typical counselor, it's not always great. gerri: i want to talk about a company called think tank learning. they guarantee you can get into an ivy league college. they handpick the students they work with. they pick people who have good gdps. good performers. the cost 25,000 smackers. >> heart stoppingly -- gerri: can these people be as successful as they say.
>> we are counselors. we're not guaranteeing admission to any school. we'll be your coach and aide in this process. not guaranteeing admission. there's lots of different bars of entry. if you have a couple of kids in college, two kids into school, doesn't mean -- you have to look at folks credentials as well as recommendations from other folks. gerri: so the way some people put it is this: if you're going to pay $200,000 for a top flight education, what's wrong with spending $10,000 on a counselor who will fashion your child's application for them. help them understand what they should in the interview process. prep them for this. i fear that people are overly concerned and worry about the process and will do anything to get ahead. >> i hear you. a ton of fear out there. anxiety and stress around the process. he we have a survey at princeton review, 70 percent of students and families are either stressed or very stressed about the college process.
we know this is a navigable, there's free books. i'm proud of the work we're doing in this area. you can do this on your own and it can be enjoyable to find the school that will be the best fit for you. gerri: 26 percent of high scoring students, a quarter of them do this. where have i been? when i went to college, we were lucky to fill out the forms and sign our name on them. >> i totally hear you. things change. here's the thing, it could be tutoring. test help. college admissions. financial advice around the college process. we have a consulting campus business. we have a partner. just thinking about that collegeing can be a wide group as well. gerri: devils in the details. specifics of the application process. how to get the money. i'm shocked how
gerri: well, all day here on fox business we've been at the la auto show showing you what's new and exciting for 2015. one of the stars of the show is motor transnew car of the year. the volkswagen golf. it's a hot seller overseas, but it's never really taken off with american consumers. vw hopes the new line up will change all that. fbn's jeff flock is with
the ceo of volkswagen north america. >> it is an amazing company. they win all sorts of awards. no ignition problems. no air bag problems. everyone loves them. how do you sell more of them, michael winterkorn to americans? >> we do right now. it's selling like hotcakes. really off the trucks. we continue with the tsi. then the tdi. then the all electric -- if you look at october, first time since many months above previous year in terms of market share, so golf say big part of the story. jeff: that's what won motorcar of the year. i'm looking at the family of golf. tell me, the most popular car built in the world. >> for volkswagen definitely yes. for volkswagen definitely yes. i don't know where he's going, but the most important part of the
motorcar of the years that we wanted the for the golf family. for the gti sporting car. all the electric cars. tdi as well as for our gas model. >> you sell more diesels than anybody in the america. >> yes. roughly 70, 75 percent of the clean diesel segment market share both in cars and trucks. jeff: do you need to be more passionate for americans? i mean, these are cars that have a great reputation for their durability, their technological capabilities. what do you think? >> i think, first of all, our product is passionate. we're passionate engineers, designers. and that's all this excitement gets into the cars and the small compact cars. we're passionate about the brands, if you see our advertisements. our customers are passionate about the brand because they want to have this germany engineering value. they're ready for germany engineering. jeff: if we talk about passion,
i may leave you with this picture over here. come over here to take a look at this. michael, what am i looking at? that's passion. >> first of all, that's passion and excitement. that's our gt turismo car. the interesting thing next to our corporation with sony to bring it into the playstation. you can derive it in the playstation. it's on the mqb transfer platform. so the la auto show is not just about the golf, but the platform and what we can do with this platform if we think this is worth while doing. and we continue with this. jeff: tremendously flexible. there you go. most can't believe that's a vw. but it is. gerri. gerri: thanks, jeff. that car looked like it was going fast sitting still. while volkswagen doesn't have the takata air bags, the automaker is recalling 442,000 jettas and beetles to fix rear
finally the takata recall that we've been talking about all hour. that situation is an embarrassment for the japanese company and the regulators in america. only now is nhtsa asking for a nationwide recall for its part takata continues to resist a broad recall. the japanese cars maker said it's limited to high humidity area. that means northeasterners don't drive to florida for vacation. crazy. previous takata recalls total 11 million in the us alone. that dwarfs the gm recall that received so much press attention earlier this year. we need to find out what's going on so desperately wrong with car and car part manufacturing. why can't these safety issues be recalled and quickly? the lives of consumers hang in the balance. my "2 cents more." if you want to know the air bag you have is part of the recall, i put a full list on gerriwillis.com. tomorrow, we'll have
full coverage of the senate investigation, and we'll be covering it all night here too. that's it for tonight's willis report. thanks for joining us. don't forget to dvr the show if you can't catch us live. have a great night. charles: i'm charles payne and you're watching "making money." president obama to announce tomorrow night the dailsz details of his plan of executive order for immigration. will our imperial president ignore the american people and grant amnesty to over 5 million illegals in this country? rich edson is live with the latest. rich. rich: evening, charles. the white house has confirmed thought about president obama's plan. the president will explain his executive order in a prime time addressed to the nation tomorrow. the action is expected to allow millions here illegally here to stay. among other measures. the administration says the president has waited too long for the republican-controlled house to vote on an immigration bill. the senate passed one in