GM Prebankruptcy Liability

[Keith Tedford]

It looks like the "new" GM is not liable for any problems occurring before the company went through bankruptcy protection. I don't know if it includes recalls as well.

GM not Liable for Pre-Bankruptcy Ignition Switch Accidents AutoGuide.com News

This is not the publicity they need when the lots are packed full of unsold cars.

 

[CCO]

IMHO such a "loophole" would help GM -- and does nothing for the affected customers.
Let's hope the bankruptcy court can please customers too.
C.

 

[Keith Tedford]

Thumb your nose at your customers and they will start doing the same in return. For the last three years, GM has been making some pretty healthy profits......if you can believe the numbers. It hasn't been a good winter for car sales. The dealer lots are full and Oshawa is going to have three weeks of down time coming up shortly. Not many people braving the cold to buy new cars.

 

[vintageracer]

There are legal obligations and moral obligations. It is very difficult to find a major corporation that does anything much in the way of moral obligations.
GM is one of those major corporations with what seems to be minimal concern for the effects of its faults.
David

 

[Keith Tedford]

I've never seen any evidence of morality in the corporate world. Then when you have share holders screaming for ever bigger profits, there isn't much room left for morality.

 

[buckhorn76]

i heard something about a 35 million dollar fine on the news tonight.

 

[CCO]

i heard something about a 35 million dollar fine on the news tonight.

.....GM recall: Questions and answers about recall of 1.6M vehicles | CTV News | Autos

That'll teach 'em.

A real shame the 13 people who lost their lives over this. That'll cost GM some of their 'profit'.

 

[Keith Tedford]

If I understand it right, there was created two separate entities, an "Old GM" which still has all the debt and liabilities with nothing to back it up. The "New GM" was given all the assets with none of the old liabilities. If this is the actual case, there isn't much to sue in the old GM and old liabilities have nothing to do with the new GM. It was a big smoke and mirrors sham from the start. The top boss left and the remainder kept on running the new GM just like the old and will end up with the same results. If anything it is even worse than before, judging from what I hear from employees still working there. I understand that a lot of GM Oshawa engineers have bailed, heading for greener pastures and that is never a good sign as to where a company is headed. Hopefully I am wrong.

 

[Elf]

.....GM recall: Questions and answers about recall of 1.6M vehicles | CTV News | Autos

That'll teach 'em.

A real shame the 13 people who lost their lives over this. That'll cost GM some of their 'profit'.

Yep ,13 people