Your tax dollars bailed their sorry ass out of oblivion. Your tax dollars helped them develop an over-hyped second-rate hybrid vehicle no one wants. If you expected gratitude from GM after all that, you just ain’t been paying attention.
Reuters reports:
General Motors 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 plaintiff] contended that her Impala suffered from faulty rear spindle rods, causing her rear tires to wear out after just 6,000 miles.
…the lawsuit demands that GM fix the rods, saying that it had done so on Impala police vehicles.
…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.
“New GM” said it did not assume responsibility under the reorganization to fix the Impala problem…. In essence, the automaker said, [the plaintiff] sued the wrong entity.
In bankruptcies, the “old” company’s failures usually aren’t the “new” company’s problem. But GM wasn’t a “usual” bankruptcy: bankrupt companies don’t usually get taxpayer-funded blank checks from the government. Bankrupt companies don’t usually vacate claims of senior bondholders in favor of their largest union thanks to a meddling politician. GM can afford to cast the usual excuses aside for Ms. Trusky as it did for its police customers.
We see it as one more reason to never again buy a Government Motors vehicle, no matter how many times they go bankrupt.
Oop. Here’s President Obama back in 2009 announcing that the government would stand behind GM and Chrysler warranties.
– Written by Bonfire of the Absurdities
Source: Reuters
This post was last modified on January 26, 2021
View Comments (36)
Trust a far righter to expect "gratitude" from Big Business, just because it received a financial break.
These are the same loons who think that, by giving the rich big tax cuts, they'll somehow be so grateful that they'll put a few hundred thousand unemployed Americans on the payroll, whether or not they need them, just to be nice guys.
Hey, Einsteins: if you keep clamoring to deregulate business, can you not see that you'll be seeing more and more of this kind of thing? :D
Third.
Not one word of your post is relevant to the GM bankruptcy. You don't know a thing about the private sector nor do you have any knowledge about this particular case. If you did you would not have written that drivel. Do some research before you parrot the progressive line. You just keep embarrassing yourself.
Slowlivia's Ghost: "Trust a far righter to expect “gratitude” from Big Business, just because it received a financial break."
Hey "loon" it wasn't "big business" that did this- the government bought out the bankrupcy with taxpayer funds, so it is this Administration's frontmen who are not honoring the debt to taxpayers who's money was used to keep UAW's union workers from getting the pink slips they so richly deserved. Get it straight before you shoot your mouth off, eh?
Obviously you know even less about business than you do about dog bites.
"...Sock Puppet back in 2009 announcing that the government would stand behind GM and Chrysler warranties."
Barry lied, Buick died! Wow, Sock Puppet telling a lie? Say it aint so!
Damn, I useter be a big GM fan. My first car was a 1969 Olds 98, a real land yacht. Never again, GM, never again.
Buick did'nt die, but Old's, Pontiac, & Saturn did. I'll add this, 1 thing that happened when GM accepted the bailout, Tiger Woods lost his sponsership deal. That had nothing to do with his antics away from the course, but it was because of the bailout. Buick no longer sponsers all the events they used to on the PGA either. Again, the bailout, & I want to see if NASCAR gets hit. Major sports sponsership to be sure, but it is followed largely by people who do not like ObamAA+ & what he's doing. I'll be interested to see what happens. Just for the record, I am not a NASCAR guy, but I do enjoy F1.
Not to get technical and dull your point which is a good one but Olds was killed 10 years ago and Hummer and Saab were killed off in addition to Pontiac and Saturn. I think Chevy will keep its relationship with NASCAR because the case can be made that it leads to car sales. The old adage still applies: race on Sunday and sell on Monday.
I left out Hummer, but I Saab was sold off. To something called Spyker Cars NV. As for Olds, you are spot on.
Saturn couldn't even figure out how to produce an ignition lock that would work for more than a couple of months. And costs $150. Tell me again about GM having quality engineers? I tried to tell my lady not to buy anything even remotely related to Government Motors. Maybe next time she'll listen.
I tried to tell my lady not to buy anything even remotely related to Government Motors. Maybe next time she’ll listen.
*******************
You told the Virgin Mary not to buy a government made vehicle? I didn't even know she had a driver's license. ;)
Wow, that was rather silly, and made no sense at all. But then again, it was from my Dear Sweet Olivia, I didn't expect any kind of sense from her.
This from a woman who claims to drive a Smart car. I'd keep quiet about car choices if I were you as you drive the laughingstock of the auto industry.
Sk: "as you drive the laughingstock of the auto industry."
Hey- she's the laughing stock of wound care, so why not add to the title?
Slowlivia's Ghost:"You told the Virgin Mary not to buy a government made vehicle? I didn’t even know she had a driver’s license."
She bought it from the same place you bought that phony nursing license...
more garbage like whats in the whitehouse!
I hope GM dies. They stole my job and my pension and gave it to the UAW. Fuck them all!
If left to the market to decide, GM would be toast now. But then again, so would Harley Davidson.
But in the case of Harley, they got no handouts/bailouts. All that happened was Reagan signed the TEMPORARY bill that put tarriffs on all foreign bikes in the same class (cc/ci) as Harley, to make the prices more competitive.
The Japanese were dumping tons of cheap bikes on the US market trying to corner it. Harley became more competitive in the market because Willy G Davidson put together a group of investors that bought HD back from AMF and then they retooled and redesigned their whole line, starting with a new and more reliable engine. Once the pricing was competitive, and people saw the improvements to the product, HD thrived on its own.
GM on the other hand, will still struggle with survival unless they get more handouts. They have no innovation that anyone is seriously interested in. If it hadn't been for the government buying thousands of Volts, they would have a stockpile sitting and rotting.
Honda slowed down its conquest of the domestic motorcycle market back in the early 1980s. It did not want to be stigmatized with being responsible for killing an American icon. I don't know how the other Japanese brands felt about keeping HD alive. WG Davidson did a great job. I got to meet and visit with him many years ago at the Milwaukee auto show. Cool guy and really knew the car/bike business well.
It was still an act of protectionism, whether it was a good thing or not. Personally, Harley has never made a motorcycle that fits my needs, but I'm glad they were able to survive to build motorcycles to fit other's needs.
The GM bailout was'nt about GM, but it was about the UAW, & all the money they give to the Dems. The only reason the ObamAA+ regime cared about the jobs is that they union jobs. If Toyota or Nissan had problems with their plants here in the USA, there would be no help at all, unless they wanted to become part of the UAW. But since they are better at designing & building cars then GM, that's not gonna happen.
So, if I were to have purchased a brand new vehicle complete with extended bumper to bumper warranty from "Old GM" the day before they went bankrupt, does that mean that "New GM" doesn't have to honor the extended warranty?
A very real possibility. The bankruptcy proceeding basically "closes the books" on all/most of the failing company's liabilities. The "new" one that emerges from the re-org only accepts the liabilities that were agreed to during the proceeding. As a Reuters article puts it:
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.
http://www.reuters.com/article/2011/08/19/us-gm-impala-lawsuit-idUSTRE77I61F20110819
Without getting too far into the weeds, the cost of warranty and potential recalls are built into the price of the car. GM's claim that its BK takes it off the liability hook should not hold up in court. The consumer is not a creditor so he should not be treated like one and told to wait in line or go away. The consumer prepays any warranted repairs or recalls. The federal government, where GM is concerned, has been a disgrace hopefully the company does the right thing.
I won't go near a GM dealership again. It may not be the dealers' fault things are how they are but the Corp. is never going to receive a dime of revenue from me.
Wow, an Isetta! I'd forgotten those things.
That's not and Isetta it's the new Government Morons Hope & Changemobile!
The last GM car I owned was a 1980 Chevrolet, it was a complete piece of junk which aggrevated me for four years. I haven't owned or leased a GM vehicle since 1984; for 27 years I've driven Hondas and Acuras with complete satisfaction and great service.
Mitsubishi has been very good to me.
"Supplies!"
-- Imperial Japan, 1941
Toyota has got to be scratching their heads!
Anyone in the government "promising" anything is lying. Been that way as long as I could remember... It just seems easier to see the lies with our current POTUS. (random thought alert) I live in Cleveland, OH and on the East side (really bad neighborhood) I saw a bumper sticker yesterday that said,"why am I the only one surprised a black guy isn't doing the job he was hired to do." and had a lil hope n change picture on the side.. And JUST in case Rev. "dull"ton or Jackson Lee read this and start callin me racist... The dude driving was black. People are startin to wake up everywhere! :) and sorry if there are spelling/grammer errors... Damned iPod