GM Hides Behind Bankruptcy for Faulty Switches

[shiny]

So let me get this straight... GM's financial division made so many bad subprime car loans that it drove them into bankruptcy. They got bailed out by taxpayers. Since then, they've earned over $22 billion to become one of the most profitable auto makers, while We the People lost over $10 billion on the deal. Now, they're arguing that bankruptcy protection should prevent taxpayers from suing them over their faulty switches.

GM Says Bankruptcy Appeal Should Wait For 2nd Circ. Ruling
By Brandon Lowrey
Law360, Los Angeles (December 23, 2015, 10:52 PM ET) -- General Motors LLC on Tuesday urged a New York federal judge handling multidistrict litigation over faulty ignition switches to delay review of a recent bankruptcy court judgment until after the Second Circuit decides whether bankruptcy protections block most car owners from suing New GM for billions over the defect.

 

[bullwinkle]

That's what happens when you're "too big to fail"! I used to be a lifetime GM guy, but a few bad experiences & relatives losing a fortune on worthless GM stock fixed that.

 

[HerrStig]

Another unintended consequence of the gubbermint meddling in the free market.

 

[Bluestream]

Shame on them for trying this!!

 

[rshaw125]

Not only that but GM is again using sub prime financing to inflate their sales figures.

 

[mk378]

Originally Posted By: HerrStig
Another unintended consequence of the gubbermint meddling in the free market.

Well if there were no bailout, and GM had gone completely out of business, exactly how would those with faulty switch claims be better off?

 

[3800Series]

Everyone got bailed out be it GM, Chrysler, and Ford.

Everyone has defects and recalls. Wasn't until the government made an example out of GM did all the other manufacturers start "noticing" theirs.

 

[Joe1]

I wish this company would have been allowed to die of a well-deserved death instead of using my tax money to prop it up.

 

[slacktide_bitog]

Originally Posted By: mk378

Well if there were no bailout, and GM had gone completely out of business, exactly how would those with faulty switch claims be better off?


They'd be the same - claims not being paid.

 

[ram_man]

Proof that the govt has no place in the private sector. Sad and very shameful.

 

[Joe1]

Notice how this news was released just before the holiday season.

 

[shiny]

We have the best government that TBTF mega-corporations can buy. The argument always goes that allowing the Big Auto to fail will destroy jobs and hurt the economy. But think about all the innovative, alternative start-up companies trying to get a foothold in the automotive market. They can't break in because of the dominance of Big Auto. Some of them have ideas that could be as revolutionary for transportation as Ford's Model T was to the horse and buggy. But they'll never have a chance when Big Auto is protected from the consequences of their bad decisions.

 

[Nate1979]

And yet everyone brags that VW is too big to fail and the German govt will save them.

 

[cptbarkey]

the 2008 bailout sham was hilarious, including this old-gm new-gm farce. the american people dont care as a whole, what you should really be peeved about is you didnt profit from it.

 

[Pontual]

I need to bail out...

 

[Silverado12]

My issue with GM is that they aren't using as many US parts suppliers as they should. The new GM trucks have a 40% domestic parts content. 10 years ago it was 90%. The bailout was the right thing to do, but the gov'ts job is to keep them and other companies in check. Hard to do when there is so much legalized bribery in our system. A lot of Americans and Canadians would have lost their jobs as well as the parts suppliers had it not been for the bailout.

 

[skyactiv]

FORD CREDIT got a bailout.

 

[dishdude]

GM paid out over $595M to victims, even though many accidents had mitigating factors such as drugs and alcohol, drivers that had fallen asleep, speeding and no seat belt use.

http://www.freep.com/story/money/cars/ge...-595m/77086980/

GM also just announced they are investing $356M in Michigan.

http://www.freep.com/story/money/cars/ge...ended/77351034/

 

[crazyoildude]

at one time GM built great cars and trucks these days not so much

 

[dishdude]

GM still builds great cars and trucks. They've built over 500 million, but I guess there were a few duds in there.