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Re: It's getting rough.
Posted by steve (more from steve) on Tue, 17 Jan 2012 23:33:40
In Reply to: Re: It's getting rough., MJP, Tue, 17 Jan 2012 17:45:20
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This is murky water. New GM is aggressively fighting the possibility for pass through claims. The master sales agreement obligates new GM to fund certain old GM warranties. The problem is enforcement if new GM or others drop the ball. That detail was seemingly omitted and so is not clear. The customer has a warranty that new GM will pay for, but might have no obligation to honor with no recourse against it. That is why the exclusions are growing. The only real solution is for someone to go back to the bankruptcy judge and get a ruling obliging new GM to deeper and complete obligations on the warranties it agreed to fund. What happens if there are no Saab parts on a fix or replace warranty? Does new GM have to buy back cars? This is conceivably a mess. I'm hoping nothing breaks until this is sorted out.
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