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  • Bailed out but not responsible for faulty cars



    * 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) 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.

    "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)
    I wear a Fez. Fez-es are cool

  • #2
    Did I ever tell you how much I liked Fords?
    Whos your Daddy?

    Comment


    • #3
      Lmao at GM stock being at $21.98. I had some shares of that fucking shit show and sold it at $31.
      Originally posted by racrguy
      What's your beef with NPR, because their listeners are typically more informed than others?
      Originally posted by racrguy
      Voting is a constitutional right, overthrowing the government isn't.

      Comment


      • #4
        I had some before the bailout. I got a nice letter from the government saying it was worthless during the bankruptcy
        I wear a Fez. Fez-es are cool

        Comment


        • #5
          i read fears about this bullshit. Same with GM adverts crowing about how they paid back their debts . Entirely full of shit. Old GM holds the debt.


          What a bunch of filthy low down cocksucker moves, IMHO.

          Comment


          • #6
            Not a good way to up your reputation

            Sent from my DROIDX using Tapatalk
            Originally posted by MR EDD
            U defend him who use's racial slurs like hes drinking water.

            Comment


            • #7
              I took my 08 Ram 1500 to the dealership because the exhaust system fell off it. Seriously. I cranked it up and heard something drop and the exhaust got extremely loud. Took it to the shop and the dealership said "Exhaust isn't covered in your lifetime bumper to bumper. Dodge won't cover it."

              Traded for a Ford.
              I wear a Fez. Fez-es are cool

              Comment


              • #8
                Fucking dodge piece of garbage. I might have considered suing them over that one. You'd likely win. "Bumper to bumper" should mean that if the airbag sticker comes off, they say "I'm sorry about that sir, let me get you a new one." Either that or you don't get to call it bumper to bumper. You get to call it "Some stuff, but it the fucking exhaust falls off, we won't fix it".

                All my life I've listened to ignorant chevy guys talk shit about fords, when they should have been talking shit about dodge. I've never known a good dodge, and I'll never ever buy or recommend one.

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                • #9
                  When I bought my Edge, I asked Ford what was covered under the warranty. The guy smiled at me and said "Here's a list of stuff NOT covered. We have the rest." Dodge's lifetime bumper to bumper warranty was BS.
                  I wear a Fez. Fez-es are cool

                  Comment


                  • #10
                    Work in a part store. If you'd buy a GM after that, you're just f'ing stupid.

                    I bought my wife a 1 year old Saturn several years ago. Pure junk. Very happy to no
                    longer own that leaky P.O.S.

                    My old 300k mile Honda was in better shape than that 50k mile GM.
                    sigpic18 F150 Supercrew - daily
                    17 F150 Supercrew - totaled Dec 12, 2018
                    13 DIB Premium GT, M6, Track Pack, Glass Roof, Nav, Recaros - Sold
                    86 SVO - Sold
                    '03 F150 Supercrew - Sold
                    01 TJ - new toy - Sold
                    65 F100 (460 + C6) - Sold

                    Comment


                    • #11
                      I do not recall, did GM toss the UAW contracts out the window with the 'bankruptcy'?

                      Stevo
                      Originally posted by SSMAN
                      ...Welcome to the land of "Fuck it". No body cares, and if they do, no body cares.

                      Comment


                      • #12
                        Originally posted by stevo View Post
                        I do not recall, did GM toss the UAW contracts out the window with the 'bankruptcy'?

                        Stevo
                        Restructured.
                        Originally posted by davbrucas
                        I want to like Slow99 since people I know say he's a good guy, but just about everything he posts is condescending and passive aggressive.

                        Most people I talk to have nothing but good things to say about you, but you sure come across as a condescending prick. Do you have an inferiority complex you've attempted to overcome through overachievement? Or were you fondled as a child?

                        You and slow99 should date. You both have passive aggressiveness down pat.

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                        • #13
                          Oh well I still like the LTZ texas edition silverados. i can fix alignment if it wears the tires out

                          Comment


                          • #14
                            Originally posted by Forever_frost View Post
                            I took my 08 Ram 1500 to the dealership because the exhaust system fell off it. Seriously. I cranked it up and heard something drop and the exhaust got extremely loud. Took it to the shop and the dealership said "Exhaust isn't covered in your lifetime bumper to bumper. Dodge won't cover it."

                            Traded for a Ford.
                            How many miles were on it? Since exhaust is part of the emissions system.. it is covered under a different warranty. Emissions parts warranties are usually longer than the average 60k mile warranty and extend to 80k or 100k. I know you had lifetime bumper to bumper... but emissions problems are on a different scale.

                            Should have fought that one.
                            www.dfwdirtriders.com

                            Comment


                            • #15
                              It had 45k on it when I took it in.
                              I wear a Fez. Fez-es are cool

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