Go Back   Two Wheel Fix > General > Cage Hell

Reply
 
Thread Tools Display Modes
Old 08-21-2011, 03:03 PM   #1
goof2
AMA Supersport
 
goof2's Avatar
 
Join Date: Feb 2009
Posts: 4,756
Default That was some other GM, not us.

http://www.reuters.com/article/2011/...77I0Z820110819

GM says bankruptcy excuses it from Impala repairs
Fri, Aug 19 2011
* New GM said not responsible to fix Impala made by old GM
* Suspension problem said to cause excessive tire wear
By Jonathan Stempel
NEW YORK, Aug 19 (Reuters) - General Motors Co (GM.N: Quote, Profile, Research, Stock Buzz) 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.
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.
"New GM's warranty obligations for vehicles sold by Old GM are limited to the express terms and conditions in the Old GM written warranties on a going-forward basis," wrote Benjamin Jeffers, a lawyer for GM. "New GM did not assume responsibility for Old GM's design choices, conduct, or alleged breaches of liability under the warranty."
David Fink, Trusky's lawyer, declined to comment.
John Penn, a former president of the American Bankruptcy Institute who is not involved in the case, said the question of "successor liability" is common for manufacturing companies that go through bankruptcy.
"The fact it comes up now is not a surprise, as this type of issue was widely discussed during GM's bankruptcy," said Penn, now a partner at Haynes and Boone in Fort Worth, Texas. "The court will need to evaluate the claims to see if they fit within any cubbyhole of liability that New GM assumed."
GM said an argument similar to Trusky's failed this year in a case involving its OnStar security and navigation product.
"There are no specific factual allegations that New GM -- as opposed to Old GM -- did anything at all in relation to her vehicle," Jeffers wrote. "Plaintiff here is trying to saddle new GM with the alleged liability and conduct of old GM."
In late afternoon trading, GM shares were down $1.62 at $21.98 on the New York Stock Exchange.
The case is Trusky v. General Motors Co, U.S. District Court, Eastern District of Michigan, No. 11-12815. (Editing by Robert MacMillan)
goof2 is offline   Reply With Quote
Old 08-21-2011, 03:32 PM   #2
Corey
AMA Supersport
 
Corey's Avatar
 
Join Date: Nov 2008
Location: Florida
Moto: Not a damn thing
Posts: 2,612
Default

Does that mean New GM will not be allowed to use the nostalgic ties to the past to sell cars like the Camaro and Corvette? Old GM made those. New GM made... the Volt?
__________________
Half man, half horse, half motorcycle. All awesome.

"Your game is shit, your company is shit. Activision ruined you! Activision ruined you." - Francis
Corey is offline   Reply With Quote
Old 08-21-2011, 04:20 PM   #3
Avatard
Crotch Rocket Curmudgeon
 
Avatard's Avatar
 
Join Date: Nov 2008
Location: Here to integrity
Moto: Li'l red baby Ninja
Posts: 7,482
Default

Right? They want to lay claim to all the history, but none of the responsibilities.

Nice.

Sounds like a trustworthy company to buy a car from, huh?

Amazed that they're running with that idea.
__________________
Insert free thought here.
Avatard is offline   Reply With Quote
Old 08-21-2011, 06:39 PM   #4
fujimoh
Kneedragger
 
fujimoh's Avatar
 
Join Date: May 2011
Location: Florida
Moto: CBR 1000RR
Posts: 230
Default

So would that also mean that if you had a loan from pre-bankruptcy GMAC, you don't have to honor it now?
fujimoh is offline   Reply With Quote
Old 08-21-2011, 08:43 PM   #5
Particle Man
Custom User Title
 
Particle Man's Avatar
 
Join Date: Nov 2008
Location: Central NY
Moto: 2003 SV650S
Posts: 14,959
Default

Quote:
Originally Posted by fujimoh View Post
So would that also mean that if you had a loan from pre-bankruptcy GMAC, you don't have to honor it now?
That's what I was gonna say. Sounds like they want all the perks and status of "GM" without the associated baggage. My next vehicle will NOT be a GM.
__________________
I'm not "fat."
I'm "Enlarged to show texture."


Handle every stressful situation like a DOG: If you can't eat it or hump it, pi$$ on it & walk away.
Particle Man is offline   Reply With Quote
Old 08-21-2011, 09:07 PM   #6
Homeslice
Elitist
 
Homeslice's Avatar
 
Join Date: Nov 2008
Location: SF Bay Area
Moto: Gix 750
Posts: 11,351
Default

LOL......what happened to GM's claims that their bankruptcy would not affect owners
Homeslice is offline   Reply With Quote
Old 08-21-2011, 09:28 PM   #7
Corey
AMA Supersport
 
Corey's Avatar
 
Join Date: Nov 2008
Location: Florida
Moto: Not a damn thing
Posts: 2,612
Default

Quote:
Originally Posted by Homeslice View Post
LOL......what happened to GM's claims that their bankruptcy would not affect owners
That was Old GM.
__________________
Half man, half horse, half motorcycle. All awesome.

"Your game is shit, your company is shit. Activision ruined you! Activision ruined you." - Francis
Corey is offline   Reply With Quote
Old 08-21-2011, 10:29 PM   #8
derf
token jewboy
 
derf's Avatar
 
Join Date: Nov 2008
Moto: CBR 900, KLR ugly ass duckling, Gas Man
Posts: 10,799
Default

Quote:
Originally Posted by Homeslice View Post
LOL......what happened to GM's claims that their bankruptcy would not affect owners
Quote:
Originally Posted by Corey View Post
That was Old GM.
hahahahahaha
__________________
derf is offline   Reply With Quote
Old 08-22-2011, 03:35 AM   #9
101lifts2
WSB Champion
 
101lifts2's Avatar
 
Join Date: Nov 2008
Location: Anaheim, CA
Moto: 2009 Kawi ZX6R
Posts: 5,570
Default

I don't understand...if your vehicle is still in warranty, then your suspension components should be covered and will be covered. But...if it's older than 3 years, it's out of warranty and you need to pay for the repairs.

This whole notion that the government has to constantly get involved with shit is insane. Listen, if GM treats the customer like shit, then the customer is not going to buy anymore GM products. Simple as that. If GM is OK with this, then they aren't going to be around much longer.

Most OEMs in other countries don't even offer warranties...
__________________
Train Hard

Ron Paul - 2012

Mark of Excellence
GM
101lifts2 is offline   Reply With Quote
Old 08-23-2011, 08:24 AM   #10
fujimoh
Kneedragger
 
fujimoh's Avatar
 
Join Date: May 2011
Location: Florida
Moto: CBR 1000RR
Posts: 230
Default

Quote:
Originally Posted by 101lifts2 View Post
I don't understand...if your vehicle is still in warranty, then your suspension components should be covered and will be covered. But...if it's older than 3 years, it's out of warranty and you need to pay for the repairs.

This whole notion that the government has to constantly get involved with shit is insane. Listen, if GM treats the customer like shit, then the customer is not going to buy anymore GM products. Simple as that. If GM is OK with this, then they aren't going to be around much longer.

Most OEMs in other countries don't even offer warranties...

Uummhhh, isn't this why GM had to be bailed out to begin with?
fujimoh is offline   Reply With Quote
Reply

Bookmarks


Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT -4. The time now is 09:41 AM.

Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2024, vBulletin Solutions Inc.