GM using bankruptcy as an excuse to skip out on auto warranties
by: J. D. Heyes
Tuesday, August 30, 2011
I’m sure you have heard of a little car company called General Motors. But did you know it was actually two companies, not one?
It’s true. There is the “Old GM,” the one that existed before the former No. 1 global car company declared bankruptcy in June 2009. And there is the “New GM,” the one that exists now, after receiving about $60 billion in bailout funds, compliments of American and Canadian taxpayers.
Even though the models of automobiles, their logos and their body styles are identical, they were technically built by two separate companies. And GM is using that technicality to get out of honoring warranties on cars built before the company was given the dishonorable nickname of “Government Motors.”
Donna Trusky, of Blakely, Pa., filed suit against GM June 29, alleging that her Impala, which she bought before the 2009 bankruptcy, had faulty rear spindle rods and caused her rear tires to wear out after just 6,000 miles. It was a problem inherent on Impalas from the 2007-2008 model years, and the company knew it.
Trusky’s suit seeks class-action status and maintains that since Government Motors agreed to fix Impalas that serve as police vehicles, they should fix hers as well. GM doesn’t see it that way.