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GM says bankruptcy excuses it from Impala repairs
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08-19-2011, 07:56 PM
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GM says bankruptcy excuses it from Impala repairs
 "New GM did not assume responsibility for Old GM's design choices, conduct, or alleged breaches of liability under the warranty."
Jonathan Stempel - REUTERS - August 19, 2011
You have to be kidding me, are these people at GM tone deaf. --Ed.
General Motors Co (GM.N) is seeking to dismiss a lawsuit over a suspension problem on more than 400,000 Chevrolet Impalas from the 2007 and 2008 model years, saying it should not be responsible for repairs because the flaw predated its bankruptcy.
The lawsuit, filed on June 29 by Donna Trusky of Blakely, Pennsylvania, contended that her Impala suffered from faulty rear spindle rods, causing her rear tires to wear out after just 6,000 miles. [ID:nN1E7650CT]
Seeking class-action status and alleging breach of warranty, the lawsuit demands that GM fix the rods, saying that it had done so on Impala police vehicles.
But in a recent filing with the U.S. District Court in Detroit, GM noted that the cars were made by its predecessor General Motors Corp, now called Motors Liquidation Co or "Old GM," before its 2009 bankruptcy and federal bailout.
The current company, called "New GM," said it did not assume responsibility under the reorganization to fix the Impala problem, but only to make repairs "subject to conditions and limitations" in express written warranties. In essence, the automaker said, Trusky sued the wrong entity.... [Read More]
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08-19-2011, 09:38 PM
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Re: GM says bankruptcy excuses it from Impala repairs
Why would the new GM be responsible for Motors Liquidation 
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08-19-2011, 10:22 PM
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Fighting untruth and misinformation
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Re: GM says bankruptcy excuses it from Impala repairs
I knew I disliked the new GM as much as the old GM. The bankruptcy is an excuse to get out of their responsibility.
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08-19-2011, 10:46 PM
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Re: GM says bankruptcy excuses it from Impala repairs
The bankruptcy is an excuse, should we not allow it in the US ?
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08-20-2011, 05:45 AM
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Re: GM says bankruptcy excuses it from Impala repairs
Bankruptcy or not, it is disturbing when a company won't stand behind its product.
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08-20-2011, 06:42 AM
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Re: GM says bankruptcy excuses it from Impala repairs
Just some thoughts:
I've been involved in a few lawsuits and it is a common tactic to throw anything on the table that might possibly work to get a lawsuit dismissed - and the old vs new GM sounds like one of those tactics. Good lawyers know that judges can be influenced by many things, so they make sure they haven't left a "stone unturned". It's just part of being a good lawyer.
What surprises me about this lawsuit is that it is common for many cars to have excessive camber (which is what replacing the rods fixes) in order to get good handling - and many. many cars have this problem and also experience rapid tire wear. As an observer of the lawyering business, it is quite likely that this lawsuit never would have been filed if GM hadn't fixed the police cars. That became the smoking gun.
I wonder 2 things:
1) Have there been other lawsuits on other vehicles for essentially the same thing? I suspect so, but because it is GM and because of the resentment generated by GM's bankrupcy, the media see this as newsworthy.
2) How is this going to end up? I predict there will be a negotiated settlement, with the real winners being the lawyers. The poor vehicle owners will probably get very little and while GM will have to pay out lots of money, that will be in the future (and the longer GM stalls, the better) and the amount of money is really small compared to actually fixing all the vehicles.
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08-20-2011, 07:37 AM
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Re: GM says bankruptcy excuses it from Impala repairs
This class action lawsuit should go to old GM.. new GM still repairs cars made by the previous company. Its just lawyers fighting it out.
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08-20-2011, 08:26 AM
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Re: GM says bankruptcy excuses it from Impala repairs
Why I made the comment about GM being tone deaf is if this story goes national it will probably have a major impact on the resale value of all GM vehicles sold before the bankruptcy.
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08-20-2011, 08:32 AM
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Re: GM says bankruptcy excuses it from Impala repairs
GM will have to do some quick advertising to counteract this.. they can easily garner sympathy against lawyers.
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08-20-2011, 10:01 AM
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Re: GM says bankruptcy excuses it from Impala repairs
Is there any money set aside by old GM-bankruptcy deal- to handle something like this?
Usually when a company goes bankrupt the folks it owns get a small percent of what they are owned.
Yes no doubt the lawyers will make out just fine- and the owners will get some small payout.
Like the owners of the side saddle gas tanks- they got some sort of coupon that allowed a discount on a purchase of a new GM- but the lawyers got real $$
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