Monday, May 19, 2008

Why GM Is Not the #1 Seller of Vehicles In the USA

The other week I posted a blog about the GM Dex-cool settlement. Since then I have gotten a number of responses to it and also just by talking to people. The problem with the settlement is the fact that there is a loophole where GM can get away from reimbursing thousands of car owners. This is the loophole:
Under the proposed settlement, GM will send cash reimbursements to class
members who paid for Covered Repairs performed within seven years or 150,000
miles (whichever is earlier) after the original owner or lessee took
delivery of the vehicle, and who submit timely and valid claims.
This basically screws over the average GM car owner because the majority of GM vehicles bought by car owners were bought used, after the vehicle had been leased for two or three years. If a lessee finds the problem one year before their lease is up they will simply wait until they turn their car in, and get a different one for the next two or three years. Then the dealer will flush the coolant and put the defective vehicle on the lot to be sold. Then an unknowing buyer comes along and buys the car with the problem, which had not been solved. This is only one example of what can happen, and where GM gets off the hook.
This is very unfortunate for GM owners like my parents, and several other people that I know. I just want to get the word out so people won’t make the same mistake again. I believe that Toyota was last year’s #1 car seller in America (C&D Magazine, correct me if I’m wrong).
This makes me wonder how much the lawyers who drafted the contract were payed to put that loophole in.

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