GM Tries To Back Out Of Repairing Recalls
It is quite evident that the taxpayer funded bailout of General Motors has helped them survive to thrive. Was the bailout also supposed to help them bail on their responsibility to their customers?
General Motors is actively seeking a dismissal to a lawsuit that will see them responsible for the repair to more than 400,000 2007-08 Chevrolet Impalas. The vehicles are apparently suffering from faulty rear spindle rods which can cause tires to wear at a significantly faster rate than normal.
Donna Trusky of Blakely, Pennsylvania suffered from this flaw. Her tires wore out after a mere 6,000 miles. Trusky filed a lawsuit in late June seeking class action status that alleges a breach of warranty. The lawsuit demands that GM fix the rods and indicates that they had done so with Impala police cars.
GM noted in a recent filing made with the U.S. District Court in Detroit that the vehicles were made by its predecessor General Motors Corp. The predecessor is now called Motors Liquidation Co or “Old GM.” This is all of course prior to the 2009 bankruptcy and federal bailout.
The current company is called “New GM.”
It is believed by the current GM management that Trusky has sued the wrong entity. New GM’s warranty obligations are apparently limited to the express terms and conditions. A lawyer for GM claims that New GM did not assume responsibility for Old GM’s design choices, conduct, or alleged breaches of liability under the warranty.
The questions are as follows; who is saddled with the legal responsibilities for repairs to over 400,000 cars that are costing people more money? Is this allowed within the guidelines of the taxpayer funded bailout? Was it truly meant for the same people who funded the bailout of a large corporation with their hard earned wages to then turn around and use those same wages to repair that corporation’s vehicles?
Despite the name of the company, whatever changes in management or product design decisions, consumers will still see GM as GM whether it be old or new. The quality of the cars has gone up considerably on many models while others are still in dire need of changes and improvements.
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