This is why we have to let businesses fail

“New GM” won’t cover recalls of pre-bankruptcy GM, so up yours, Chevy Impala owners:

General Motors Co (GM.N) is seeking to dismiss a lawsuit over a suspension problem on more than 400,000 Chevrolet Impalas from the 2007 and 2008 model years, saying it should not be responsible for repairs because the flaw predated its bankruptcy.

…The current company, called “New GM,” said it did not assume responsibility under the reorganization to fix the Impala problem, but only to make repairs “subject to conditions and limitations” in express written warranties.

Translation: this is a novel cost cutting measure by a short-term, myopic management that doesn’t care about customer loyalty. Thanks for the honesty, fuckers.

Guess what? Since the government has a pimp hand in the car business still, they’ll likely urge the courts to back down and shovel more corporate socialist manure under the rug. Watch for a team of “New GM” lobbyists and PR lackeys to mount a campaign to fight this tooth and nail in the coming weeks. Meanwhile the layoffs and consolidations will continue unabated. “New GM” is a cruel joke against designers and the working man never stood a chance.

Karen De Coster over at Lew Rockwell writes, “for those folks who insisted on the “Buy American” paradigm, I do not feel their pain for buying junk from a financially insolvent bank masquerading as an auto manufacturer.” Nor should we, they made their own bed.

Here’s a question: how many more government billions will it take to build another crappy hybrid once they wake up and realize their precious Volt has already failed the market test?

  1. GM isn’t liable. That company is gone. President Obama said that the govt would cover all warranties–that’s not legally binding is it? If that’s written anywhere, you Impals owners can just take $ from your neighbors. Good times.

    1. Well isn’t that nice, through clever regulatory jujitsu they manage to make the car owners look like the assholes by the act of demanding their warranty enforcement.

      Good times indeed.

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