GM says bankruptcy excuses it from Impala repairs

Sinn Fein

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GM says bankruptcy excuses it from Impala repairs

New GM said not responsible to fix Impala made by old GM

* Suspension problem said to cause excessive tire wear

By Jonathan Stempel

NEW YORK, Aug 19 (Reuters) - General Motors Co (GM.N) is seeking to dismiss a lawsuit over a suspension problem on more than 400,000 Chevrolet Impalas from the 2007 and 2008 model years, saying it should not be responsible for repairs because the flaw predated its bankruptcy.

The lawsuit, filed on June 29 by Donna Trusky of Blakely, Pennsylvania, contended that her Impala suffered from faulty rear spindle rods, causing her rear tires to wear out after just 6,000 miles.

Seeking class-action status and alleging breach of warranty, the lawsuit demands that GM fix the rods, saying that it had done so on Impala police vehicles.

But in a recent filing with the U.S. District Court in Detroit, GM noted that the cars were made by its predecessor General Motors Corp, now called Motors Liquidation Co or "Old GM," before its 2009 bankruptcy and federal bailout.

The current company, called "New GM," said it did not assume responsibility under the reorganization to fix the Impala problem, but only to make repairs "subject to conditions and limitations" in express written warranties. In essence, the automaker said, Trusky sued the wrong entity.

"New GM's warranty obligations for vehicles sold by Old GM are limited to the express terms and conditions in the Old GM written warranties on a going-forward basis," wrote Benjamin Jeffers, a lawyer for GM. "New GM did not assume responsibility for Old GM's design choices, conduct, or alleged breaches of liability under the warranty."

David Fink, Trusky's lawyer, declined to comment.

John Penn, a former president of the American Bankruptcy Institute who is not involved in the case, said the question of "successor liability" is common for manufacturing companies that go through bankruptcy.

"The fact it comes up now is not a surprise, as this type of issue was widely discussed during GM's bankruptcy," said Penn, now a partner at Haynes and Boone in Fort Worth, Texas. "The court will need to evaluate the claims to see if they fit within any cubbyhole of liability that New GM assumed."

GM said an argument similar to Trusky's failed this year in a case involving its OnStar security and navigation product.

"There are no specific factual allegations that New GM -- as opposed to Old GM -- did anything at all in relation to her vehicle," Jeffers wrote. "Plaintiff here is trying to saddle new GM with the alleged liability and conduct of old GM."

In late afternoon trading, GM shares were down $1.62 at $21.98 on the New York Stock Exchange.

The case is Trusky v. General Motors Co, U.S. District Court, Eastern District of Michigan, No. 11-12815. (Editing by Robert MacMillan)
 

mascan42

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#3
"Plaintiff here is trying to saddle new GM with the alleged liability and conduct of old GM."
That's like me killing someone and then changing my name and saying it was the old guy. They may have re-organized, but it's still substantially the same company with most of the same people in charge.
 

steve500

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Didn't Obama pledge to stand behind all pre-restructuring warranty issues?

You would have thought GM would have fixed this regardless, to avoid tarnishing the actually decent image they're establishing these days.
 

steve500

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haha, if you bought American you deserve the dick in your ass.
But the Union man told me it was the right thing to do! (and he told me to ignore that many Toyota products have more domestic content & labor input vs. the GM/Ford ones)
 

Ballbuster1

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This is why I was against any bailouts. You can't survive? Fuck you.

Now all the corporations and banks that got bailed out are just giving
the taxpayers that saved them the middle finger. Fucking cunts.
 

Sinn Fein

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We're going to need another new car soon. 95% sure it's going to be a Honda. But we might give Ford a look.

I was against the bailouts too. If they weren't unionized companies, it would have never happened.
 

Ballbuster1

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I'd buy another Hyundai in a minute.

15 G's, tax included for a fully loaded Elantra (sunroof too)
that's given us 6 years of use with only maintenance needed.
 

mascan42

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I'd buy another Hyundai in a minute.

15 G's, tax included for a fully loaded Elantra (sunroof too)
that's given us 6 years of use with only maintenance needed.
Same here, only I might upgrade to the Sonata just for the extra trunk space. Got to buy a new car by the end of next year, or my Runzheimer car expenses become taxable.
 

CousinDave

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Didn't Obama pledge to stand behind all pre-restructuring warranty issues?
You would have thought GM would have fixed this regardless, to avoid tarnishing the actually decent image they're establishing these days.

The fact that the current POTUS said that the warranties would be guaranteed told me that the warranties would be voided

Had GM gone into liquidation and Renault picked up the pieces, they would have honored the existing warranties

GM has been mismanaged for decades

I don't understand why you bail out the people would fucked up
 

CousinDave

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Dec 11, 2007
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#12
I'd buy another Hyundai in a minute.

15 G's, tax included for a fully loaded Elantra (sunroof too)
that's given us 6 years of use with only maintenance needed.

Coming an auto mechanic that statement means more to me than anything the Madison Avenus types are paid tens of millions to say
 

THE FEZ MAN

as a matter of fact i dont have 5$
Aug 23, 2002
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We're going to need another new car soon. 95% sure it's going to be a Honda. But we might give Ford a look.

I was against the bailouts too. If they weren't unionized companies, it would have never happened.
I'd buy another Hyundai in a minute.

15 G's, tax included for a fully loaded Elantra (sunroof too)
that's given us 6 years of use with only maintenance needed.

i wouldn't buy a fucking ford if it was the last car on earth. i would buy a Hyundai or a honda first
 

Sinn Fein

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LOL. Realistically I don't see us getting a Ford. Got a cousin who sells Honda and Nissan, has gotten kller deals for other family members. If I can make it all happen at the right time, should get an amazing deal due to model-year leftover incentives, etc.
 
Jun 2, 2005
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#15
Great... I had a 2007 Impala SS which my mother loved, so I gave/sold it to her. (I had paid the note down so there was only a few thousand left, so she just took it over)

BB/FEZ MAN: Would the fact that it's an SS mean it had different suspension? Would the problem have already manifested if it was susceptible? (Probably about 45k miles on it)

We're going to need another new car soon. 95% sure it's going to be a Honda. But we might give Ford a look.

I was against the bailouts too. If they weren't unionized companies, it would have never happened.
The new Fords are fucking awesome. I have a 2011 F-150 Lariat 4X4 and it's like driving a damn 5 star hotel that can tow a house. You've gotta check them out, especially since they're addicted to the 0% promotions.

This coming from a guy who grew up a devout Chevy man, could deal with Dodge, and fucking hated Ford. I'm an absolute convert after I borrowed my buddy's truck last year. It's insane how much they've improved while Chevy's declined.
 

Ballbuster1

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Great... I had a 2007 Impala SS which my mother loved, so I gave/sold it to her. (I had paid the note down so there was only a few thousand left, so she just took it over)

BB/FEZ MAN: Would the fact that it's an SS mean it had different suspension? Would the problem have already manifested if it was susceptible? (Probably about 45k miles on it)
I don't think the package changes the problem.
There really isn't a difference in the rear suspension parts
since it's a FWD car.
Not too sure when the fault occurs. I've heard of cars with 10 G's
have problems and others not showing up til higher than 30,000 miles.
 

THE FEZ MAN

as a matter of fact i dont have 5$
Aug 23, 2002
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#19
Why? The 2010 and 2011 models are like a brand new car company.
it has nothing to do with the model year, it has to do with the way they are built and designed i fucking HATE them almost as much as VW/Porsche and those are the worst cars on EARTH to work on

And we can thank the government for their generous loans. :icon_cool
ford didn't take any bail out money
 
Jun 2, 2005
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#21
I don't think the package changes the problem.
There really isn't a difference in the rear suspension parts
since it's a FWD car.
Not too sure when the fault occurs. I've heard of cars with 10 G's
have problems and others not showing up til higher than 30,000 miles.
The SS models had more of a racing suspension feel, different size wheels and tires, etc.

I know all that could mean jack and shit to this issue, but there were differences in the suspension between the packages.

Oh well, I gave her such a good deal on the thing she can take care of it if it goes to shit. She makes enough to handle it.

it has nothing to do with the model year, it has to do with the way they are built and designed i fucking HATE them almost as much as VW/Porsche and those are the worst cars on EARTH to work on
So it's that they suck to work on, not that they're mechanically shit?
 

THE FEZ MAN

as a matter of fact i dont have 5$
Aug 23, 2002
42,153
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#23
So it's that they suck to work on, not that they're mechanically shit?
they are mechanically shit if i have to work on them. i dont have to work on hondas ive seen countless stupid things break on fords for no apparent reason other than poor design
 

ruckstande

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Our brand new Kia Sportage is the bomb. We fucking loving. As soon as I can afford it I'm getting the Soul.
 

Falldog

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