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GM Looking Again for Protection from the Courts

General Motors, embroiled in controversy over an alleged cover-up of faulty equipment linked to more than a dozen deaths, is looking to ask for another round of protection from a bankruptcy judge.

Wanting product liability lawsuits limited in scope

The Detroit News is reporting today that the paperwork was filed in San Francisco with a hearing set for U.S. Bankruptcy Court in New York later this month.

GM CEO Mary Barra wants the judge to bar lawsuits against the company for actions prior to its 2009 bankruptcy/restructuring.  The automaker is facing already more than 40 suits in 19 courts across the country, including Michigan.

The report indicates that as part of the terms of the bankruptcy, the automaker would be leaving behind liability for product safety problems when it became a new company in July of 2009.  “The new GM did not assume the liabilities of the Old GM,” the filing read.

Meanwhile, replacement of the faulty ignition switches are taking longer than expected.  They were to begin on April 7th but were delayed when many dealerships reported not having enough parts to handle the massive job.

GM officials now say it could be October or even longer before enough parts are produced and delivered to fix the nearly 2.6 million vehicles worldwide linked to the defective switches.

Join Jo Anne Paul and Steve Gruber weekdays from 5:30 to 9 AM on 1240 WJIM-AM and the Stations of the Michigan Talk Network.  Join the discussion by calling our hotline at (888) 900-9966!

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