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http://www.autoblog.com/2011/08/22/gm-claims-not-responsible-for-impala-problems-from-before-bankru/
I think I've railed about this before, but it's in this morning's news again. New GM says it's not responsible for any defects, recalls, etc from before the bankruptcy. If this holds up (and it has for the last 2 years), it's screwing thousands upon thousands of people. Chrysler got the same sweet bargain.
now that is slimey... but legally correct
"The General's lawyers say the company is responsible for claims against warranties set up under the old company, but never agreed to take responsibility for defects. Slick move, boys."
That's some mighty fine hair splitting right there.
Too bad they couldn't "forgive" customers who were unable to make payments on cars before "new" GM came into existence. That is, if you once bought a GM car at their dealerships, a bankruptcy, foreclosure, or poor credit score wouldn't keep you from getting a 0% finance deal that as the teeny tiny print tells you in the ads "not all consumers may qualify for the advertised loan interest".
mad_machine wrote:now that is slimey... but legally correct
Exactly.. I guess their stance is that the company would have been gone without this structural change, which means everyone (even warranty claims) would have been hosed. instead they'll only hose some subset of those people. Slimy but they can probably get away with it since it's a new company.
You can't seriously think they'd have a chance if they were expected to make good on all the crap they built prior to bankruptcy.
It's no different than all the crap they've been building AFTER the bankruptcy and it's even being built BY THE SAME PEOPLE! Same union workers, same middle management and THE SAME EXECUTIVES!
The only barely tolerable domestic make is Ford. At least they didn't take the handout and screw the tax paying public. Oh, and they're honoring all their recalls and "defects" from prior years.
GM & Chrysler can kiss it.
P.S. In case you think I'm a Ford acolyte check my garage, I am NOT a Ford fanboi.
<<<<< quickly runs to see if the same principles can be applied to individuals.
ww hit the nail on the head. Some of the cars GM is coming up with now are leap years better, but a bunch of it is still junk. Maybe they'll just file for bankruptcy every few years as a corporate strategy.
I think I just heard a big crashing noise as the resale value of "old GM" and Chrysler vehicles collapsed. I suspect this will get sorted out, but until it does there's a window of opportunity to pick up, oh, a G8 GT for less...
Reading the article, I read that as "it'll still have a warranty, but don't expect a recall". How much expensive PR will it take to undo what the lawyers did just to avoid a recall?
Keith et all: The recalls still happen, it's just Old GM that pays for it. Old GM is, of course, totally broke. So the net result is nothing happens. It's totally legal, and probably the single biggest chunk of money saved by GM and ChryCo in the Government takeovers, and probably why they agreed to it at all.
integraguy wrote:Too bad they couldn't "forgive" customers who were unable to make payments on cars before "new" GM came into existence. That is, if you once bought a GM car at their dealerships, a bankruptcy, foreclosure, or poor credit score wouldn't keep you from getting a 0% finance deal that as the teeny tiny print tells you in the ads "not all consumers may qualify for the advertised loan interest".
i thought you meant if you bought a pre-bankruptcy GM that you could quit making payments on it since pre-bankruptcy GM no longer exists. 
If you financed a pre-bankruptcy GM you did not finance it with Old GM but rather a seperate company like GMAC. Trust me, they want their money.
Oh yeah, GMAC has seen its share of protection as well!
This "news" is at least 2 years old.
NGTD wrote:This "news" is at least 2 years old.
I know. I acknowledged that in the first post. I'm pointing out that it's still popping up AND that it's still being viewed as correct by the courts/Administration.
How is it that bankruptcy can be so beneficial to a company that coulden;t stay afloat on its own.. grrrr
So why didn't new GM lose their legacy union costs?
spitfirebill wrote:So why didn't new GM lose their legacy union costs?
They didn't? I'm pretty sure they did...
Javelin wrote:spitfirebill wrote:So why didn't new GM lose their legacy union costs?
They didn't? I'm pretty sure they did...
They certainly don't own the healthcare part. VEBA costs were part of the bankruptcy payout agreement. Which I'm sure the union wants to sell as soon as they can- they need the cash.
BTW, bill- will you get a pension?
This is one reason why I A) quit working for GM B) Will not ever purchase another GM vehicle and C) Sell my current GM vehicle. I love the LS motors and the Corvettes and that's about it, even so, their product quality is still garbage, their warranty times blow, and some of their engineers must be on meth when they design things e.g. oil filter location on the Traverse. No proper drainage, oil goes everywhere, you have to remove it topside but then get under the car to clean up the mess it leaves, unless you are one of the smart ones that managed to come up with a contraption made out of water bottles and old oil bottles to make a mouse trap to properly drain the old oil.
If you can't tell I have a lot of angst from my last outing of employment with the General.
Since are having fun with GM.....my father-in-law is in his 23rd year of GM UAW retirement and is in great health. I think he is finally paying something towards his health insurance. LOL.
He will probably be one of those guys that have more years on the retirement payroll (23) than they spent at the company (30).
Keith wrote: How much expensive PR will it take to undo what the lawyers did just to avoid a recall?
Just ask Ford.
A times B times C equals X. If X is less than the cost of a recall, we don't do one.
/in the book, the stolen limo was from "Jack"'s company and had known and covered-up safety defects
/in the movie, the stolen limo was a Lincoln Town Car
/so was the burned-out car
Well, at least I was able to get the recall on my wife's VUE done a couple of months ago. Apparently there was a software issue in the trans that would cause it to shudder and slip under load. I thought there might be some major problem, but it turns out the software flash fixed it. The local Saturn service is handled by a Cadillac dealer and they were very professional and efficient.
Granted, YMMV....
ww wrote:so you like Datsuns-I mean Nissans. Christ, they wouldn't even exist either if they hadn't been bailed out by the French. Speaking of crap-seen a Juke,a Cube or the Murano vert? I'm sure glad the designers of the Aztek found work after the Pontiac gem.It's no different than all the crap they've been building AFTER the bankruptcy and it's even being built BY THE SAME PEOPLE! Same union workers, same middle management and THE SAME EXECUTIVES!
The only barely tolerable domestic make is Ford. At least they didn't take the handout and screw the tax paying public. Oh, and they're honoring all their recalls and "defects" from prior years.
GM & Chrysler can kiss it.
P.S. In case you think I'm a Ford acolyte check my garage, I am NOT a Ford fanboi.
alfadriver wrote:BTW, bill- will you get a pension?
I assume you mean me
The only "pension" I will get will be the 401k I have contributed everything to myself (with a teensy tiny company match before the meltdown). I had pensions at two companies I worked for years ago, when this was what companies had to do. The first company gave me my pension and I had to use it to relocate. The second company just screwed me and chose not to vest me (didn't have enough years before they E36 M3 canned about 90 of us).
BTW I am not union.
forzav12 wrote: Speaking of crap-seen a Juke
Sorry, unlike the Aztec, the Juke is a 1.6L turbo awd 6 speed manual BEAST. And the styling is much better than an Aztec. No crap here boss, high fives all around for being innovative 
