New GM says it not responsible to fix Chevrolet Impala made by… old GM

Article by Christian Andrei, on August 29, 2011

General Motors Co. has filed a motion to dismiss a lawsuit related to a suspension defect on over 400,000 Chevrolet Impalas from the 2007 and 2008 model years, citing that it isn’t liable for repairs since the cars were built before its bankruptcy and bailout.

Donna Trusky of Blakely, Pa., filed the lawsuit on June 29, claiming that her Impala had defective rear spindle rods and as a result, her rear tires wore out after only 6,000 miles.

The suit, which alleges breach of warranty, is seeking class-action status, says Reuters. The suit is demanding that GM repair the rods, something that it had done on Impala police vehicles.

GM said in a filing with the U.S. District Court in Detroit that the cars were built by predecessor General Motors Corp., now known as Motors Liquidation Co. or "Old GM."

It further stated that the present company, referred to as "New GM," did not assume responsibility under the reorganization to repair the Impala problem, but only to make repairs "subject to conditions and limitations" in express written warranties. In other words, the wrong entity was sued.

Benjamin Jeffers, a GM lawyer, said: “New GM's warranty obligations for vehicles sold by Old GM are limited to the express terms and conditions in the Old GM written warranties on a going-forward basis.” He added that New GM did not assume responsibility for the design choices, conduct, or alleged breaches of liability of Old GM under the warranty.

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