Government Motors not responsible for "old GM" cars

[MadMonk]

What a crock.
http://www.reuters.com/article/2011/...77I0Z820110819

NEW YORK, Aug 19 (Reuters) - 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.
...
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.

Keep this in mind if you are shopping for a used GM vehicle.

[Larry OKC]

hmmm, does that mean warranties aren't valid? What about the loans or lease agreements? Guess everyone should have stopped paying!

[mugofbeer]

Playing Devils Advocate, Mad Monk, as much as we may want to rely on the perception of a "moral obligation" for GM to repair these vehicles for free, the fact is that they went through bankruptcy proceedings which usually reduce or eliminate the bankrupted party's obligations and debts. That being the case and assuming the bankruptcy requirements did, in fact, relive GM of the obligations of the old GM, their stance is correct - they are NOT responsible for the liabilities of old GM cars. This is the unfortunate downside of bankruptcy. The new GM doesn't have to pay most old GM bondholders any interest. Thats a fact of life. The same is said for this type of liability unless the courts and the bankruptcy case specifically stated otherwise.

[mugofbeer]

hmmm, does that mean warranties aren't valid? What about the loans or lease agreements? Guess everyone should have stopped paying!

Not positive about warranties but you may be thinking that GM issued car loans. They did not. Loans or lease agreements were with GMAC, not GM. That was a separate company for the last few years of the old GM life. It's remains are now the Ally Bank you see ads for on TV.

[Larry OKC]

Playing Devils Advocate, Mad Monk, as much as we may want to rely on the perception of a "moral obligation" for GM to repair these vehicles for free, the fact is that they went through bankruptcy proceedings which usually reduce or eliminate the bankrupted party's obligations and debts. That being the case and assuming the bankruptcy requirements did, in fact, relive GM of the obligations of the old GM, their stance is correct - they are NOT responsible for the liabilities of old GM cars. This is the unfortunate downside of bankruptcy. The new GM doesn't have to pay most old GM bondholders any interest. Thats a fact of life. The same is said for this type of liability unless the courts and the bankruptcy case specifically stated otherwise.

So the whole "to big to fail" was a scam? Looks like they DID fail and the Courts and Feds (taxpayers enabled them to do so). Remember those full page ads GM took out patting themselves on the back for repaying the bailout money (and early too)? Then it came out that they repaid it with other government loans. Using Visa to pay MasterCard (when both are issued by the same bank)...

[Snowman]

What a crock.
http://www.reuters.com/article/2011/...77I0Z820110819

Keep this in mind if you are shopping for a used GM vehicle.

While it is crappy and bad customer service that they are doing this to those who's are still allegedly under the warranty, most warranties would not transfer anyway if the car is sold anyway. Good way to loose customers.

[WilliamTell]

the same way that car manufactures move from state to state to get incentives after their host state cuts off the millions or billions in tax incentives, car manufactures should also declare bankruptcy every few years to void them of any liability for making defective cars; what would be really good is if they could do this while securing 100's of billions in tax payer incentives to do this....then use the billions of American tax payer money to build new factories in Mexico to get billions of Mexican tax and drive down labor cost.

wait what?

http://www.americanthinker.com/blog/...nvestment.html

http://www.nytimes.com/2006/07/20/bu...r.2254475.html

GM Mexico and Canada Assembly -

Chevrolet C2
Chevrolet HHR
Cadillac SRX
Chevrolet Aveo
Pontiac G3
Pontiac Wave
Escalade ESV
Escalade EXT
Avalanche
Suburban

Chevrolet Equinox
GMC Terrain
Tracker,
Sidekick, Asuna/Pontiac Sunrunner (Canada only),
Suzuki Vitara,
Chevrolet/Geo Metro,
Pontiac Firefly (Canada only),
Suzuki Swift,
Suzuki XL-7,
Pontiac Torrent.
Impala
Camaro
Equinox
Yukon XL

Chrysler Assembly in Mexico and Canada -

Chrysler Hemi engine
Chrysler Pentastar engine
Dodge Ram 2500 &3500
Dodge Journey
Fiat Freemont
Fiat Nuova 500

Chrysler 300
Dodge Challenger
Dodge Charger
Aluminum Die Castings, Pistons
Dodge Grand Caravan
Chrysler Town & Country
Volkswagen Routan

[MadMonk]

Playing Devils Advocate, Mad Monk, as much as we may want to rely on the perception of a "moral obligation" for GM to repair these vehicles for free, the fact is that they went through bankruptcy proceedings which usually reduce or eliminate the bankrupted party's obligations and debts. That being the case and assuming the bankruptcy requirements did, in fact, relive GM of the obligations of the old GM, their stance is correct - they are NOT responsible for the liabilities of old GM cars. This is the unfortunate downside of bankruptcy. The new GM doesn't have to pay most old GM bondholders any interest. Thats a fact of life. The same is said for this type of liability unless the courts and the bankruptcy case specifically stated otherwise.

Legal liability or not, I'm only pointing out that a) its a slap in the face to their customers and the American taxpayer considering we bailed them out, and b) if you are in the market for a used GM vehicle (which I was), its important issue to know about.

[MustangGT]

The courts will have to decide the question of "Successor Liability."

[Soonerman]

Thats why I own a Ford.

[Easy180]

Probably go ahead and honor them if there is a big enough backlash.. If this does not become a big story it probably makes sense to money grubbing corporations

[Roadhawg]

Thats why I own a Ford.

and me a Jeep

[Maynard]

and me a Jeep

"Beep beep -- who got the keys to the jeep?"

[ctchandler]

I have bought more GM than any other brand over the years and only after Ford bought Hertz (I was a Hertz employee) and offered us the employee purchase plan did I start buying their products. I was very happy with my purchases and not just because of the price. Then when they refused the government bailout I was also impressed. I was thinking about a new Buick but I believe I will stay with Ford even though I don't get the great A plan price since they sold Hertz. I do wish they still made the Mercury line.
C. T.

"Beep beep -- who got the keys to the jeep?"

[MadMonk]

Jeep owner here too. My wife was considering buying something in the Tahoe/Yukon line. Not any more.

[Thunder]

Geez. This is why you all need auto insurance. If I had the money, I would get a specific Chevy Colorado immediately.

[Maynard]

Geez. This is why you all need auto insurance.
....
....

[rcjunkie]

Jeep owner here too. My wife was considering buying something in the Tahoe/Yukon line. Not any more.

I have a 2010 Tahoe and love it.

[rcjunkie]

Geez. This is why you all need auto insurance. If I had the money, I would get a specific Chevy Colorado immediately.

Auto insurance doesn't cover vehicle flaws

[bluedogok]

BMW Z4 and Toyota 4Runner here, we had a Ford F-150 and Escape before that. Most of what I have owned are Fords, I plan on getting another pickup and it will be another Ford, a Toyota or Nissan. When it comes time to replace the BMW it will probably be with a Porsche Boxster/Cayman or a C6 Corvette, a Corvette is the only GM product that I would consider. I have only purchased one new car (Mazda), there are too many good deals used. I bought my Z4 at six years old with 45,000 miles on it for less than half of what it was new. For the most part car companies don't really care about me anyway since I buy used.

Ford/Mercury: 6
Mazda: 2
Chevy: 1
Honda:1
Toyota: 1
BMW: 1

[Jersey Boss]

What a crock.
http://www.reuters.com/article/2011/...77I0Z820110819

Keep this in mind if you are shopping for a used GM vehicle.

..."seeking", being the operative word