Oh, lawyers. Don't ever change. That Washington State firm that filed a "potentially precedent-setting" lawsuit against General Motors has just had a few of its primary arguments shot full of holes in a new story from TheDetroitBureau.com.
As you'll recall, the $10-billion suit was filed by Hagens Berman Sobol Shapiro out of Seattle, and alleges that "GM's egregious and widely publicized conduct and the never-ending and piecemeal nature of GM's recalls has so tarnished the affected vehicles that no reasonable consumer would have paid the price they did when the GM brand meant safety and success."
That'd be a fine argument, were it backed up with, you know, data or facts. Instead, as TDB pointed out, the residual values of GM vehicles have scarcely been impacted by the recalls. It spoke to Kelley Blue Book, the Black Book and ALG for information on sales and residual values, and found that, if anything, GM vehicles continue to do well. In fact, according to the Black Book, a six-year-old Chevrolet Cobalt, one of the most recalled vehicles in the ignition switch fiasco, actually saw its residual values increase in the past few months. Some analysts were less political. Scott Painter, the founder and CEO of TrueCar, for example, called the suit "opportunistic and despicable."
There's much more that's worth reading over at TheDetroitBureau.com. We'd strongly recommend you head over and take a look.