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GM Not Liable for Current Ignition Defect

By | March 11, 2014
Last month the National Highway Traffic Safety Administration opened an investigation to see what took General Motors so long to recall select Cobalt/HHR models for faulty ignition switches. However, thanks to the immunity pact filed when the company went bankrupt back in 2009, the company may not be held liable, as accidents before 2009 would fall to "Old" GM. Currently, GM and the NHTSA haven't released any details on when the issue was discovered or when injuries took place in relation to the faulty ignition switch problem. In a recent statement, a company spokesman said, "GM is focused on ensuring the safety and peace of mind of our customers involved in the recall. It is true that new GM did not assume liability for claims arising from incidents or accidents occurring prior to July 2009." Claims made prior to the company's bankruptcy will be negotiated with "Old" GM lawyers, while claims made after will be the responsibility of GM. Many of the claims filed back before the bankruptcy didn't get resolved, and those currently being tried have been found meritless by judges and juries. As of now, GM is assuming all responsibility for legal action brought against it in relation to these now-recalled vehicles. Source: Wall Street Journal
 
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