Add Impala Owners to “Hosed by GM Bankruptcy” List

National Legal & Policy Center ^ | August 22, 2011 | Mark Modica

[jazusamo]

It looks like there will be a new group of individuals who lose out under the General Motors bankruptcy process. GM has decided not to take responsibility for defects in Chevy Impalas that predated its bankruptcy filing. Consumeraffairs.com reports that GM has asked a court to dismiss claims relating to faulty suspensions in more than 400,000 Chevys produced for model years 2007 and 2008. GM claims that it is not their problem, since they are "New" GM and the cars were built by "Old" GM.

When the Obama Administration made a plan for GM's bankruptcy process, taxpayers and GM vehicle owners were promised that existing warranties would be honored. The implications were that defects in vehicles made by "Old" GM would be taken care of. I guess you can file this statement along with others that turned out not to be true like, taxpayers will make money on their investment (going in the wrong direction), Chevy Volt is a game changer for GM (not even close), GM has repaid its loans in full (depends on your definition of "loans"), Chevy Volt gets 230 MPG (it doesn't), China is GM's crown jewel (show me the money), Chevy Volt is a pure electric vehicle (it's a hybrid), GM has $40 billion of cash on its balance sheet (not really), Chevy Volt isn't selling because it is virtually sold out (guess again), the list seems to grow every day.

Throughout the GM bailout debacle, there have been those groups that have done well and those that have suffered. Those groups that have political pull are doing fine. Rich and powerful bankruptcy law firms have made a fortune, big investment banks cleaned up on the GM IPO, minority and woman led firms were given a cut of the pie as it was mandated that they be included in the IPO process and of course the friends of Obama at the UAW are in good shape even though they would have been decimated in any legitimate bankruptcy process.

Others were deemed to be less politically important such as GM shareholders and bondholders, closed dealerships, asbestos and accident victims, Delphi non-union retirees and now owners of defective Chevy Impalas. The powers that be must feel that there are not enough votes or money coming from these smaller groups to show them the kind of love bestowed upon the UAW. In the case of the American taxpayers that are paying more than any other group, the Obama Administrations' philosophy must be that the group is not smart enough to understand that they too are being hosed. Just keep saying what a success the bailout was and maybe they'll believe it.

One of the biggest travesties might be the lack of fair mainstream media attention given to the GM story. What are the ramifications of giving $50 billion of taxpayer funds to a major corporation, have that corporation spend hundreds of millions of dollars from that war chest on television sponsorships and then have those networks that receive the immense ad revenue be responsible (or not) to provide news (other than hype) on that same corporation? Does anyone think that the TV news coverage on GM gives a clear picture of what is transpiring? Where is the "fair and balanced" coverage? Perhaps most bizarre is the hype now being bestowed upon the new Cadillac version of the Chevy Volt after the media and America were duped on the prospects of the original. I guess the old adage, "fool me once, shame on you; fool me twice, shame on me" does not apply if enough money is involved.

I had a friend named Tom tell me that he hasn't seen anybody care that much about what happens at GM besides me. The Chevy Impala incident gives a good example of why people should be paying attention to what goes on at GM. If America's government can intrude upon private industry and manipulate who wins and loses, all Americans are at risk of being added to the list of losers, particularly if they are not a member of a politically preferred class. It seems Impala owners are learning that lesson.

Mark Modica is an NLPC Associate Fellow.

[jazusamo]

Government Motors is not making any friends with this idiotic move but wants more money from taxpayers.

[OCCASparky]

I also have a pre-2009 Jeep. Makes you wonder if that lifetime powertrain warranty is any good anymore, despite the letter I got saying it still was.

[Fledermaus]

I used to buy Pontiacs, now they are gone. They were going down hill anyway.

We have a 2005 Silverado with only 52,000 miles and it’s constantly having a problem here or there.

I will NEVER buy GM again.

[jazusamo]

November IPO $33.00

Current pirice $21.71 Aug 22 4:00pm ET

[Bryanw92]

GM is dead to me.

[Lazlo in PA]

I had a friend named Tom tell me that he hasn't seen anybody care that much about what happens at GM besides me.

If that is true Tom, why aren't Chevy's being bought? Volt sales are dead and we already read reports that dealers are forced to carry 90 days of inventory over the old 30 days to make it look like GM is moving units. People care and are voting with their checkbooks. Just look a FORD sales lately. They are overall solid.

These cars are junk anyway.

NHTSA Recall History

2006 w/manual passenger seat adjustor: Left floor mounting bracket may be dislocated; in a severe crash, adjuster may separate from bracket.

2007: The fuel tank is missing the adhesive layer that bonds the barrier layer to the outer shell of the fuel tank. With this condition, fuel and/or fuel vapors could seep out between the layers, increasing the risk of a fire. Dealers will inspect the serial number on the fuel tank and replace the fuel tank if necessary.

2009: During a passenger-side air bag deployment, pieces of the inflator tube could strike and injure vehicle occupants and the air bag cushion would not inflate fully, reducing the capability of the bag to protect the passenger.

This is just what we are being told.

[mellow velo]

GM should use that tactic when negotiating with the thug auto unions. “We’re sorry, your overly-generous contract was with the “old GM”. We are now the “new GM” so your contracts all revert back to square 1.”

[ConservativeDude]

don’t worry...the volt is going to kick in soon and pump up that share price!

[Joe Boucher]

At this point if i need a part for my 2002 chevy step side p.u. I’ll go to N.A.P.A. to hell with chevy gub mint motors.
And as for buying another chevy? Ain’t gonna happen.

[BMCinSC]

>>GM claims that it is not their problem, since they are “New” GM and the cars were built by “Old” GM.<<
Fine. Then give up your tax loss carry forwards that you earned under the “Old” GM which you’re using under the “New” GM.

[jazusamo]

The big shots at GM are complete idiots. The owners of these Impalas and all their family and friends are now GM haters. Really stupid!

[Dogbert41]

I’m with ya brother. My last GM Vehicle was a used 02 Avalanche. And it was my LAST. If I ever am able to buy a new vehicle again, it’ll probably be something that’s pulled by a horse.

[TwelveOfTwenty]

No doubt if GM goes bankrupt again, then a “new new GM” will be formed from all of the assets, while an “old new GM” will remain on paper to handle any problems with GM’s current offerings. And good luck collecting from them too snicker snicker.

[Sergio]

“GM claims that it is not their problem, since they are “New” GM and the cars were built by “Old” GM.”

So Obama should stop blaming G.W. for the economy,since that was the “old” administration.

[I cannot think of a name]

November IPO $33.00 ((Full Blown Bull Goose Looney Price))

Current price $21.71 Aug 22 4:00pm ET ((Half Bull Goose Looney Price))

$0.00 - Eventual, rational price based on solid fundamentals.

[USMCPOP]

Walk to work, and carry a gun. Uphill. Both ways.

[Lazlo in PA]

The big shots at GM are complete idiots.

They are more than that. Bob Lutz, the gold standard of car men and the auto industry, recently wrote an article on how GM is now being run by accountants and beadles who have absolutely no experience in cars or the car culture. They probably couldn't even change a tire. That is why they do this Impala warranty BS and push junk cars no one wants like the Volt. This whole thing wreaks of the old British Leyland.

[Lazlo in PA]

Walk to work, and carry a gun. Uphill. Both ways.

Do you live in an Escher painting?

[rex regnum insanit]

Same here! I bought my last GM car in 1990. After that and a couple of previous fiascoes I swore off them and haven’t looked back. GM should have been allowed to sink so that reputable car companies could pick over the carcass to salvage the usable bits. At this rate there won’t be anything worth saving.

[doodad]

Oh the irony. The same car and time period that my lefty neighbor (young kid in family owned house) so proudly boughty during cash for clunkers.