Another day, another disaster for General Motors. The embattled automaker is looking down the barrel of $ 10 billion in lawsuits from disgruntled owners of vehicles affected by the recall of the ignition switch . Meanwhile, a team of judges will meet and find out if the 79 individual lawsuits are combined into one great costume .
Several of the lawsuits claim that the pre-bankruptcy “old GM ” promoted as safe and reliable vehicles . Many argue that the automaker has successor liability, a recent lawsuit alleging “acts and omissions of GM old deceptive and unfair .
” Several cases argue successor liability because the post- bankruptcy ” new GM ” purchased and operated Old GM as a company in operation . Some of the lawsuits also cite Delphi Corp. as a defendant because Delphi manufactures ignition switches for GM.
Most of the 79 lawsuits allege that the problem of the ignition switch has lowered the resale value of recalled vehicles , while some are arguing directly against defending GM bankruptcy , alleging that the company , as successor old GM remains responsible . A suit even alleges that the old GM made ” deceptive and unfair acts and omissions. “
As previously reported , GM has asked the U.S. Bankruptcy Court to invalidate related economic loss suits , citing the argument Old GM / New GM. This is in contrast to claims for death or injury, the company is in the process of negotiation.
There seems to be empirical evidence opposing claims of lost resale value . The Detroit News quotes ALG , which found that rates used Chevrolet Cobalt affected by the recall have only dropped $ 300 in relation to the average vehicle class .
“Similar to the widespread recovery ‘ unintended acceleration ” of Toyota as of 2009 , GM has been the short- term resale values , ” said Vice President of ALG editorial , Eric Lyman, in a statement, according the News. ” is unlikely to be any long-term effect , however, and ALG has no reason to predict lower values than previously expected . “
GM has asked a judge to rule that no liability for damage claims resulting from the actions of the company before its bankruptcy in 2009. A panel of judges is scheduled to decide this month whether suits are combined into one , and what a federal court should handle them.
GM Facing $10B in Ignition-Related lawsuits, Plans legal Dept. Overhaul 2014 Another day, another disaster for General Motors. The embattled automaker is looking down the barrel of $ 10 billion in lawsuits from disgruntled owners of vehicles affected by the recall
