GM to ask bankruptcy court for lawsuit protection
Source: AP-Excite
By TOM KRISHER
DETROIT (AP) - General Motors revealed in court filings late Tuesday that it will soon ask a federal bankruptcy judge to shield the company from legal claims for conduct that occurred before its 2009 bankruptcy.
The automaker's strategy is in a motion filed in a Corpus Christi, Texas, federal court case, and in other cases across the nation that involve the defective ignition switches that have led GM to recall 2.6 million small cars.
The motion asks U.S. District Judge Nelva Gonzales Ramos to delay action on the lawsuit until the bankruptcy court rules and other federal courts decide if the case should be combined with other lawsuits. But GM says it's not asking to halt action on a motion to force GM to tell customers not to drive their cars that are being recalled.
GM has said at least 13 deaths have been linked to the switch problem. The switch can unexpectedly slip out of the "run" position, shutting down the engine, knocking out power-assisted steering and power brakes, and disabling the air bags. GM admits knowing about the problem for at least a decade, but it didn't start recalling the cars, including Chevrolet Cobalts and Saturn Ions, until February.
FULL story at link.
Read more: http://apnews.excite.com/article/20140416/DAD6V82G2.html
Sherman A1
(38,958 posts)I thought I heard the new CEO say something along the line that they wanted to take care of the families of the victims, but perhaps I misunderstood or they have something else in mind such as a coupon for a free pizza or alike.
bulloney
(4,113 posts)They make junk, then they don't back what they sell when the vehicle falls apart before the warranty expires, or they try to weasel out of any obligations they incur from producing said junk.
lostincalifornia
(3,639 posts)Last edited Wed Apr 16, 2014, 10:17 AM - Edit history (1)
experience with GM, Ford, Chyrsler, Toyota, Honda and Nissan. I also have had vehicles from Toyota, Honda, Nissan, and Buick that gave me nothing but problems, including two Toyotas where the accelerator stuck. No one was hurt in my family thank goodness. For my Honda CRV, my air conditioner went out at 30000 miles, the front bushings needed to be replaced at 50000 miles, and the automatic lock mechanism on the doors at 65000 miles.
I have had GM and Ford cars go over 150000 miles without any issues, so I guess it all depends on the luck of the draw
Kelvin Mace
(17,469 posts)with 277,000 miles when I sold it.
Two years ago I sold my 1997 Nissan Sentra with 164,000 miles.
Neither had any significant problems.
I am old enough to remember when an American car was considered incredible if it cracked 100K miles.
My criteria for cars these days is:
1) Safety
2) Reliability
3) Fuel economy
lostincalifornia
(3,639 posts)lostincalifornia
(3,639 posts)parties who were not injured are trying to cash in through their honorable layers. Those folks who were not injured or hurt deserve to have their affected cars of course repaired, and any inconvenience compensated with loaner cars etc.
lbrtbell
(2,389 posts)In 2008, there was a huge class-action lawsuit against GM, for putting Dexcool antifreeze into their 1996 and later cars. That's why GM is asking for protection for claims made before their 2009 bankruptcy.
Dexcool eats away at many parts of the engine; ours cost about $3000 to have all the damage repaired, by the time evverything was fixed. We couldn't get in on the lawsuit, as our damages occurred in 2010.
We had the antifreeze flushed and replaced with the regular green antifreeze, and haven't had any problems since. Our Buick sedan is a terrific, comfortable car, unlike the concrete-seated junk that's being unleashed by auto manufacturers today. Were it not for the Dexcool, our Buick--like so many other GM cars of its era--would have been very reliable vehicles.
The people affected aren't trying to "cash in" on anything. They simply wanted compensation for thousands of dollars' worth of repairs caused by that foul Dexcool.
Unfortunately, I think those people who filed the lawsuit aren't going to get one penny in compensation. It's bad enough that people like me are out of luck because our damage didn't show up before 2008 (because we had our antifreeze flushed/replaced, despite the auto manual saying not to; people who didn't flush their cars' antifreeze sustained more and earlier damage). But when even the people who sued are going to be out of luck...it's another victory for corporate America over the little guy.
lostincalifornia
(3,639 posts)bringing up is a legitimate grievance. It is equivalent to the problems Mazda had a while back with their rotary engines. In that case as I understand it, the consumers were compensated, and you and others should be also.
Thanks for the clarification
seabeckind
(1,957 posts)But not unexpected. Typical dishonesty...get a ruling on a simpler, less expensive issue,
then apply it to the real one. Didn't we see this tactic in some legal novels?
Kinda like the money is speech business. Or corporations are people.
Skittles
(153,160 posts)seabeckind
(1,957 posts)WovenGems
(776 posts)If they did not reveal the possible liability at the start of bankruptcy then they can't say that they are covered.
L0oniX
(31,493 posts)but ...but ...I thought corporations are people too.
Response to Omaha Steve (Original post)
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