Tag Archive | "Impala problem"

GM – The Company That Should Have Failed Now Refuses Chevy Impala Repair


In December 2008 President Bush announced the bailout of General Motors. The Republican President made it clear that he does not understand the importance of free markets as he stated it was important to intervene and prevent a failure of the US auto maker. President Bush claimed that

“Chapter 11 is unlikely to work for American automakers at this time…American consumers understand why: If you hear that a car company is suddenly going into bankruptcy, you worry that parts and servicing will not be available, and you question the value of your warranty. And with consumers hesitant to buy new cars from struggling automakers, it would be more difficult for auto companies to recover…”


The Republican President clearly showed  his ignorance and lack of economic knowledge. Bush also stated that “I’ve abandoned free-market principles to save the free-market system.” Only an economic illeterate fool would believe that the market is only important as long as prices increase and people increase their paper net worth. The market works perfectly well when corrections take place as this allows unsustainable, irresponsible, and financially unsound business practices to fail. Intervening in the process only allows the financially and business unfit to survivie. That not only comes at the cost of the bailouts but at the cost of fundamentally sound businesses that cannot compete with their subsidized competitors. Market interference eliminates rationality and fundamental sustainable businesses in the long term.

The Republican Bush administration initiated the nearly $20 billion bailout for the auto industry while placing substantial orders of new government vehicles which directly helped the automakers. Nearly three years after the bailout and after shareholders lost their investments in General Motors, the bailed out company now uses the restructuring to its advantage by telling Americans that it will not repair the defective rear spindle rods on 400,000 Cheverolet Impala’s that are affected by the manufacturing error. Reuters reported:

“NEW YORK, Aug 19 (Reuters) – General Motors Co (GM.N) is seeking to dismiss a lawsuit over a suspension problem on more than 400,000 Chevrolet Impalas from the 2007 and 2008 model years, saying it should not be responsible for repairs because the flaw predated its bankruptcy.

The lawsuit, filed on June 29 by Donna Trusky of Blakely, Pennsylvania, contended that her Impala suffered from faulty rear spindle rods, causing her rear tires to wear out after just 6,000 miles.

Seeking class-action status and alleging breach of warranty, the lawsuit demands that GM fix the rods, saying that it had done so on Impala police vehicles.

But in a recent filing with the U.S. District Court in Detroit, GM noted that the cars were made by its predecessor General Motors Corp, now called Motors Liquidation Co or “Old GM,” before its 2009 bankruptcy and federal bailout”

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