'New GM' won't recall 'old GM' cars

Chevrolet Impala.

Chevrolet Impala.

Published Aug 23, 2011

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General Motors is facing a lawsuit for refusing to recall 400 000 Chevrolet Impalas that were built during the 2007 and 2008 model years, according to the Chicago Tribune.

The reason? Because the General Motors formed after the bankruptcy and government bailout of 2009 is a 'new company' and the cars were made by the 'old GM' that preceded the whole legal reshuffle that essentially saved the carmaker's skin.

The lawsuit was filed by a Pennsylvania woman, whose rear tyres wore out after only 9700km due to problematic rear spindle rods. GM already fixed the Impala police vehicles that were affected, but owners of the civilian vehicles have not been so lucky.

Here's how one of GM's lawyers puts it: "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."

Clearly the fine print involved does not involve the cars in question but here's the thing - the 'new GM' has clearly taken a 'not my problem' approach to all of this, even though it still trades by the same household name and sells the same brands as the 'old GM'. Is this really good for brand perception?

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