• Jun 28th 2009 at 2:11PM
  • 31
A consumer group representing people who currently have product liability claims against GM and Chrysler looks like it won't be getting much, if any, restitution. When GM went into bankruptcy, it still planned to deny any liability claims -- ones that came up today, for instance -- when the new GM was formed. In a reversal meant to quell resistance from that consumer groups and state officials, New GM has agreed to assume liability for future claims on products made by Old GM.

The consumer group said, "The fact that 'New GM' will protect consumers injured by defective 'Old GM' cars is a positive development for public safety." The key word in this is "future;" new GM won't be responsible for any of the currently pending claims -- those that the consumer group is really fighting over, and that will still be addressed by old GM. Also, no date was given for when the "future" begins, so there is still a fair bit of clarity left to get on this issue.

[Source: Yahoo!]

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    • 1 Second Ago
      • 6 Years Ago
      My faith in GM is gone. So is my intention to ever, ever buy another GM product. Hide behind the cloak of bankruptcy and screw your customers. Nice job...
      • 6 Years Ago
      So sad. GM seems to be really getting into scrapes.
      • 6 Years Ago
      What difference does it make anyway? The 'new' GM will be in CH7 within 2 years of emerging from CH11.
      • 6 Years Ago
      The most remarkable part of this is that people will continue to buy GM cars, despite the fact that this company is into cartoonish supervillain territory.

      It's turning into a game -- how many different ways can they disrespect and generally punish the public and yet still retain some of them as clients?
        • 6 Years Ago
        to alex:

        When normal people go bankrupt, the debt holder gets absolute say in how the property is divided, to minimize the loss. When my neighbor went bankrupt, the bank dictates how the house was sold and everything else. But in GM’s case, it was given all the protection, but none of the responsibility of being bankrupt. If we do follow the laws, there should even be a good GM. Innocent people are being thrown to the street to appease more voters. This is democracy and capitalism at its absolute worst.
        • 6 Years Ago
        I was really starting to like gm's lineup, then they pull this crap. Could i of been converted over from ford? Before this mess, possibly. Now i have faith in GM or how they stand behind their products.
        Now when i think of gm i can't help thinking of people that are now handicapped and will never receive well needed money that they deserve.
        Screw gm.

        This has got to be some of the worst publicity GM has ever gotten.
        • 6 Years Ago
        GM didn't want bankruptcy. The public and the Government did.
        • 6 Years Ago
        you guys need to get your panties out of a knot. oh someone isn't getting money they were owed? guess what, that's what bankruptcy is! bankruptcy is about forgiving debt which translates into someone isn't getting paid! when normal people go bankrupt, companies that they owe mony to get screwed and never get paid. and when companies go bankrupt, their customers, suppliers, vendors, etc get screwed.

        don't like it? then maybe you should call your congressman and demand all bankruptcy laws stricken from the books. the outrage over this is akin to saying "well i knew GM filed for bankruptcy, but i didn't think they'd be given bankruptcy protection!"
        • 6 Years Ago
        my, bad i meant "no faith".
        Ancient posting system.
      • 6 Years Ago

      Much as I believe that Chrysler hasn't turned out a decent vehicle since it got rid of the Slant Six, it at least has new management--giving it a better chance of survival than GM.

      Please click ads google on the site to continue

      In order to have an incentive to continue

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      Thank you for your understanding
      • 6 Years Ago
      All debates about legality aside, I won't buy a "new" GM car. Who's to say in 3 yrs when the "new" GM goes the way of the "old" GM I won't be stuck with the bill when my car's faulty engine wiring caused it to burst into flames burning me over 99% of my body....
      • 6 Years Ago
      So I'm not a fan of GM even though I own to of their cars. I'm damn sure not a fan of the bailout, or the general way the company and government is acting.

      But this is pretty ridiculous, thats what bankruptcy is, the elimination of debt and obligations. It seems instead of wining and complaining the people that are out all that money will learn their lesson and NEVER do business with anything GM related ever again.

      Yes it sucks - but if you REALLY must do business with them in the future, insist on a cash only, up front payment. Then you protect yourself.

      I'm really tired of the trend of the typical American wanting everything handed to them for free, with a guarantee, insurance, and all the other nice things. Sometimes life isn't fair, people are not honest, and it sucks, but you gotta deal with it.

      If you apply twisted illogical things to a huge company going under, (i.e. bailouts) you are going to get some twisted weird results. All you have done is set a precedent that any poorly run big company can squander money and get a bailout courtesy of the US tax payer.

      After all the mess we have gone thru with GM, they still have all these little problems hanging on them that will guarantee a failure (again) in the future. Unions still in existence, liability claims, inept CEO's, and top guys that generally don't know wtf is going on.

      All of this could have been solved if we as a country let GM fall, and then rise from the ashes leaner, meaner, and smarter than before.
        • 6 Years Ago
        Don't forget to vote in 2010 and 2012, Jeff.
      • 6 Years Ago
      I find it amusing that the Insurance Institute's crash sled has better alloy wheels than most cars.
        • 6 Years Ago
        Man - you took the words right out of my mouth - Nice rims! I am guessing they have their pick of many off the heaps of wreckage left behind after their tests.
      • 6 Years Ago
      With government powers, a company can do what it wants. In GM's case, it won't pay its debt, its legacy costs, nor honor its liabilities. It gets to start over with a clean slate all paid for by tax money as if all those bad decisions, bad products, and bad debt should be forgiven. That is not free enterprise.

      The question is, why should anything be different moving forward? I remember when Saturn started, and all the hype about GM doing things different "this" time - A new Kind of Car Company. In the end, it wasn't a new kind of car company.

      All this means is that GM gets to accrue debt again so nothing has to change. But because it now starts off with no debt, it will have the luxury of years and years of more bad decisions, bad products, to accrue enough bad debt to make things go critical again. The cycle begins once more.
        • 6 Years Ago
        "In GM's case, it won't pay its debt, its legacy costs, nor honor its liabilities. It gets to start over with a clean slate all paid for by tax money as if all those bad decisions, bad products, and bad debt should be forgiven. That is not free enterprise."

        It's called bankruptcy, fer crissakes!

        • 6 Years Ago
        LOL, That is NOT bankrupty. Do not pass go. Bankruptcy does not mean the taxpayer pays your debt. Your creditors do. That's fair and square. They assumed the risk when they lent the money. In GM's case, the government has bailed them out with tax money so that their creditors will continue to supply them so that they can stay in business despite being a total basket case of an enterprise.

        That is not how any other company operates under bankruptcy. That's how socialism operates. And rather than it allowing the auto industry to change, it allows it to continue doing the same thing with a brand new set of credit cards.
      • 6 Years Ago
      Thsi limitation on liability is conventional bankruptcy proceedings. I feel sorry for all the ambulance chasing shyters who are allaways ready to steal 30% of the money owed to injured people, for very little work.. They will have to actually work a few days to contine their lawsuits against the old GM assets; and might not get all that they wanted.

      Meanwhile the can continue to sue the new GM for new liabilities.

      • 6 Years Ago
      You guys have to You Tube the spoof on the reinvention ads run by GM, it is hilarious. Seriously.
      • 6 Years Ago
      According to the news last night this not true, GM will honor old claims, an agreement had been reached late.
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