Autoblog

New GM will take on future product liability claims, but not the current ones, against Old GM

Jonathon Ramsey — Sun, 28 Jun 2009 14:11:00 EST

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!]

New GM will take on future product liability claims, but not the current ones, against Old GM originally appeared on Autoblog on Sun, 28 Jun 2009 14:11:00 EST. Please see our terms for use of feeds.

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Comcast pulls ad criticizing GM, Chrysler to review claims

Jonathon Ramsey — Fri, 26 Jun 2009 15:26:00 EST

Filed under: Government/Legal, Videos, Chrysler, GM

Commercial regarding GM and Chrysler's liability claims -- Click above to view the after the jump

A group called the Ad Hoc Committee of Consumer Victims of GM and Chrysler put together a commercial to run on Comcast throughout the weekend. The group numbers 460 people, 300 of whom are plaintiffs against GM, the rest against Chrysler, all of whom claim catastrophic injuries or the deaths of relations due to defective vehicles from the two companies.

The ad attacks the issue of New GM not being responsible for such liabilities. The claims, said to add up to about $1.25 billion for just the GM parties, would be addressed by the Old GM and lumped in with every other unsecured creditor's claims. That means that if the plaintiffs received anything at all, it wouldn't be much. GM is just following the government's orders -- it was the Administration that decreed post-bankruptcy Chrysler and GM won't be responsible for vehicles sold previous to bankruptcy.

GM's attorneys called Comcast, and Comcast explained pulling the ad by saying "We have temporarily stopped airing the ad while we conduct a review of the claims it makes." The commercial only asserts a few facts which could be easily checked, and makes a generalization about claims that won't be reported if people know nothing will come of them. Comcast hasn't given any timeline for that review, though. You can watch the ad after the jump and see for yourself.

[Source: Washington Post via TTAC]

Continue reading Comcast pulls ad criticizing GM, Chrysler to review claims

Comcast pulls ad criticizing GM, Chrysler to review claims originally appeared on Autoblog on Fri, 26 Jun 2009 15:26:00 EST. Please see our terms for use of feeds.

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Bankruptcy filing reportedly allows GM, Chrysler to shed hundreds of product liability lawsuits

Chris Shunk — Mon, 22 Jun 2009 14:27:00 EST

Filed under: Government/Legal, Chrysler, 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 fees) in 2008 and $1.1 billion in 2007.

The government has ruled that the new GM and Chrysler will not be held liable for vehicles sold by the old GM and Chrysler. Lawyers are still debating whether or not cars and trucks purchased after bankruptcy proceedings began will be covered, but anything before bankruptcy is apparently out of the picture. University of Michigan law professor and bankruptcy scholar John Pottow told the DetNews that GM lawyers gave him the impression that it was the government that was driving this issue:

"What's fascinating about this is that it is the government taking the hard line here, insisting that the new company should emerge free of those liabilities. It's the government actually thinking like hardheaded investors instead of taking the more predictable, more socialist line."

While the two companies' ledgers will look better without the threat of liability, the move is brutal for those who are awaiting trial or have already been awarded money but have yet to receive any funds. Those who have been permanently disabled as a result of alleged vehicle defects will now likely never receive a dime for their injuries. While pre-bankruptcy liabilities will be swept under the rug, GM and Chrysler will continue to cover all applicable warranties both pre- and post-bankruptcy.

In the meantime, attorneys general from a number of states aren't taking the matter lying down - eight separate states have filed objections to the provision in federal bankruptcy court on Friday.

[Source: The Detroit News]

Bankruptcy filing reportedly allows GM, Chrysler to shed hundreds of product liability lawsuits originally appeared on Autoblog on Mon, 22 Jun 2009 14:27:00 EST. Please see our terms for use of feeds.

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Volkswagen's GX3 to be nixed because of legal concerns?

Stuart Waterman — Sun, 14 May 2006 09:03:00 EST

Filed under: Concept Cars, LA Auto Show, Government/Legal, Safety, Volkswagen

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.

Although the trike would have been classified as a motorcycle, with safety standards vastly different than an automobile's, it sounds like VW lawyers are concerned that the GX3 was just too car-like for (their) comfort.

We really can't blame VW, but we'd sure like to blame somebody... a few staffers are ready to hold a candlelight vigil in hopes that the German automaker will have a change of heart.

[Sources: AutoWeek; Volkswagen]

Volkswagen's GX3 to be nixed because of legal concerns? originally appeared on Autoblog on Sun, 14 May 2006 09:03:00 EST. Please see our terms for use of feeds.

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