Avoiding Responsibility As A Way Of Life

Hot Air posted an article today about General Motors’ return to bankruptcy court. Yes, you read that right. General Motors has returned to bankruptcy court to request that Judge Gerber enforce the liability shield it constructed during its 2009 Chapter 11 bankruptcy proceedings. What General Motors wants is to insure that any lawsuits dealing with the ignition switch defect can only be brought against the Old GM shell.

The article reports:

There are at least 59 potential class-action lawsuits in the works seeking economic loss damages, but to get them, they will have to unwind the liability shield somehow.

One way to do that would be to demonstrate that GM had committed fraud by concealing the ignition switch defect before the bankruptcy. Another potential avenue would be to establish that the bankruptcy shield had denied the plaintiffs due process by depriving them of their day in court now that the ignition switch defect has been made public.

The court proceedings mark the sixth ongoing probe of GM, following investigations launched by Congress, an undisclosed state attorney general, the U.S. Attorney’s office, the SEC, and the NHTSA. GM also has an internal probe trying to determine who knew or should have known about the problem that has claimed at least 13 lives and cost GM car owners millions of dollars.

There are some real questions about who knew about the ignition problem and when they knew, but the bankruptcy proceedings of General Motors were not your ordinary bankruptcy proceedings from the beginning. Taxpayers lost nearly $10 billion in the bailout (see rightwinggranny.com). The rules of bankruptcy were not followed, and essentially the company was turned over to the unions. Evidently the unions had no more regard for the safety of the average American than did the corporate executives.

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When Government Interferes In The Free Market

There will probably come a time in the future when we are not driving cars with internal combustion engines. I don’t know when that time will come, but I know it will come when an alternatively-fueled car becomes practical and economical. We are not actually there yet.

On Friday the Washington Examiner posted an article stating that General Motors is temporarily laying off 1300 employees due to lack of sales of the Chevy Volt.

The article reports:

The car company had hoped to sell 45,000 Chevy Volts in America this year, according to the Detroit News, but has only sold about 1,626 over the first two months of 2012.

“GM blamed the lack of sales in January on “exaggerated” media reports and the federal government’s investigation into Volt batteries catching fire, which officially began in November and ended Jan. 21,” the Ann Arbor (Mich.) News reported.

Under President Obama’s proposed budget for next year, the government subsidy for people who purchase a Chevy Volt will be raised to $10,000. I am not sure that will pass or will help if it is passed. I suspect the only way to sell them is to drop the price to about $20,000, which is about what average people actually pay for a car. Meanwhile, I wish the auto bailout money had stayed in the taxpayers’ pockets. 

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