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.
Outside of bankruptcy, General Motors and Chrysler were no longer competitive enough to remain solvent. After Chapter 11 reorganization, the two automakers will have a clean financial statement and a whole lot fewer employees, plants, and dealers. Another area where the two automakers will receive a clean bill of health is product liability lawsuits, and the savings will be huge, The Detroit News reports. GM, for example, had $928 million in liability expenses (including court costs and lawyer f
Sadly, Volkswagen looks ready to pull the plug on its GX3 project, which only weeks ago looked set to put the three-wheeled star of this year's L.A. Auto Show in U.S. showrooms by 2007. AutoWeek reports that concerns about U.S. liability laws have driven a stake through the heart of the project, which, although not officially dead, is at best on life-support.