GM Promises To Uphold Claims On Old Model Cars

June 28, 2009

US (ChattahBox) – After attempting to ward off claims from older models following their bankruptcy, fallen auto giant GM has promised to take any liability claims from any models following their Chapter 11. Under GM’s original bankruptcy plan, the auto maker planned to leave such liabilities behind after selling its tangible assets to a “New GM” owned by the government. However more than a dozen state attorneys generalĀ  and several consumer advocacy groups who objected to GM’s original plan to shed these liabilities, arguing it violated potential future victims of their legal rights.

“The fact that ‘New GM’ will protect consumers injured by defective ‘Old GM’ cars is a positive development for public safety,” the BBC quoted The Ad Hoc Committee of Consumer Victims of Chrysler and GM.

It is one of the steps in a wider restructuring that GM hopes will reestablish their dominance within the auto industry.

They will be faced with heavy competition for the title, with national and international companies clambering to take advantage of the current fall of the car market.


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