Category: Automotive

NHTSA Agrees to Correct Impala Star Ratings; GM, Enterprise Try to Allay Concerns over Deleted Airbags

Posted on | by admin

REHOBOTH, MA – As Enterprise Rent-A-Car and General Motors scramble to correct the false advertising that claimed former fleet vehicles being sold used were equipped with “standard” side curtain airbags, the National Highway Traffic Safety Administration has agreed to correct the information on its consumer website.

Over a three-year period, GM had offered fleet buyers as a cost savings the option of deleting the standard side airbags in 2006-2008 Chevrolet Impalas and MY 2008-2009 Chevrolet Cobalt and Buick LaCrosse models. Last month, investigations by SRS and the Kansas City Star revealed that the troubled automaker and Enterprise, its biggest fleet customer and the nation’s largest used car seller, were re-selling these altered fleet vehicles – mostly the Impalas –  to retail consumers and advertised them as having the important safety feature. Continue reading →

SRS Requests GM Brand Cars and asks NHTSA to Change NCAP Designations for Vehicles with Deleted “Standard” Side Airbags

Posted on | by admin

Safety Research & Strategies continuing investigation into the “fleet delete” option that allowed GM fleet buyers to purchase vehicles without “standard” side curtain airbags reveals that bagless cars are still being sold to the public as having the feature. (SRS Investigation)

On September 2, 2009,  SRS requested GM president and CEO Frederick Henderson change its advertising and marketing materials to reflect that the feature is not standard and alert all dealers and car buyer’s guide organizations of this anomaly on the 2006 through 2008 Impala, 2008 through 2009 Cobalt and any other vehicles that GM has marketed with “standard” side curtain airbags that were offered to fleet buyers without the feature.

SRS also asked NHTSA Acting Administrator Ron Medford to have the agency amend its side-impact crash-test rating information to reflect new information that has come to light regarding deleted “standard” side curtain airbags.

Below are links to the letters:

Letter to GM President and CEO, Frederick Henderson

Letter to NHTSA Acting Deputy Administrator Ron Medford


Chrysler Accepts Future Liability; Current Claimants Still have no Recourse

Posted on | by admin

Two-and-a-half months after Chrysler took a pass on accepting responsibility for injuries and deaths caused by its defective products via an expedited bankruptcy plan, the automaker announced that it was going to accept future liability claims for vehicles made by the old company.

It would be heartwarming to imagine a corporate come-to-Jesus moment, but cooler calculations apparently prompted this new tack, including increased pressure from injury victims, Congress, and the threat of state-by-state litigation into the legality of wiping away future claimant’s rights.

Continue reading →

GM / Chrysler Bankruptcies: What’s In What’s Out

Posted on | by admin

The terms of the Chrysler and GM bankruptcies have created arbitrary and artificial classes of claimants. Here are the current parameters for liability:

Chrysler: Date of Bankruptcy Exit: June 10

What’s Out: The new Chrysler has no liability for any vehicles built by the old Chrysler. That means: the liability for all current, pending and future claims of any Chrysler vehicle built before the automaker exited bankruptcy belong to the old company.

Recovery of Unsecured Claims: Projected to be zero (or at most ½ cent/dollar).


General Motors: Date of Bankruptcy Exit: July 10

What’s In: The new GM agreed to assume liability for vehicles built by the old company, if the incident occurs after July 10, when GM exited bankruptcy.

What’s Out: The old GM retains the liability for all current and pending claims. If the incident occurred before July 10th, it is considered a pending claim, even if it has not yet been filed.

Recovery of Unsecured Claims: Unsecured claims in GM are predicted to receive between 10-20 cents on the dollar, several years from now. This is based on projections; there is no guarantee. Cost of administration claims will likely be paid in full for anyone having an accident in the five weeks in between when GM entered and exited bankruptcy, once the old company is liquidated.

Chrysler, GM Bankruptcies Concluded, Defect Victims Cheated

Posted on | by admin

WASHINGTON, D.C. – The Obama administration’s drive-by bankruptcies have left the victims of defect-related crashes to eat their dust, but consumer advocates are turning to other strategies to force Chrysler and General Motors to do the right thing.

Consumers for Auto Reliability and Safety, along with Consumer Action, Center for Auto Safety, Center for Justice & Democracy, and National Consumers League, have petitioned the Federal Trade Commission to require labels informing buyers of a used Chrysler’s unique liabilities. The label they’ve suggested goes like this:

“WARNING    This vehicle was produced prior to the date when the Chrysler bankruptcy was approved. If you buy this vehicle and are injured or killed, even if your injuries were caused by the manufacturer, you or your survivors will not be able to recover your losses by taking action against the manufacturer. If your passengers are injured or killed, even if their injuries were caused by the manufacturer, they and their survivors will not be able to recover their losses by taking action against the manufacturer.” Continue reading →

Sudden Unintended Acceleration

Posted on | by admin

Sudden Unintended Acceleration can be rooted in a variety of vehicle defects including ergonomic design flaws, mechanical or electro-mechanical failures, or electronic failures.  The article below, republished from Safety Research & Strategies bi-monthly publication, The Safety Record, is an overview of SUA. Continue reading →

Stick a Fork in It

Posted on | by admin

Barring a successful appeal by some crash victims, the General Motors bankruptcy is a done deal. Over the Independence Day holiday weekend, Judge Robert E. Gerber of the federal bankruptcy court in Manhattan declared independence for General Motors from all previous liabilities. On Sunday, Gerber approved the sale of the automaker’s assets to a consortium consisting of the governments of the U.S. and Canada and a health trust owned by the United Auto Workers union. The parties were racing to beat the Obama administration’s clock of a bankruptcy and sale by Friday. The deal is expected to close on Thursday, after the judge’s four-day stay runs out.

Continue reading →

Caveat Emptor

Posted on | by admin

Pity the poor used Chrysler dealer trying to peddle some pre-bankruptcy bargain with this sticker:

“WARNING    This vehicle was produced prior to the date when the Chrysler bankruptcy was approved. If you buy this vehicle and are injured or killed, even if your injuries were caused by the manufacturer, you or your survivors will not be able to recover your losses by taking action against the manufacturer. If your passengers are injured or killed, even if their injuries were caused by the manufacturer, they and their survivors will not be able to recover their losses by taking action against the manufacturer.”

Continue reading →

GM’s End Run Starts to Falter

Posted on | by admin

Opponents of Chrysler and General Motors’ bid to play the get-out-of-liability-free card scored a partial victory Friday. GM agreed to amend the terms of its bankruptcy to assume liability for future death and injury claims. The deal was reportedly hammered out late Friday between the Treasury’s auto task force, GM and more than a dozen states attorneys general.

Continue reading →

Why the Problems Won’t Go Away When the Old Chrysler and GM Do

Posted on | by admin

About 3,400 individuals will die or be injured in a General Motors or Chrysler vehicle due to an automotive defect in the companies’ first year post-bankruptcy, according to a new analysis conducted by Safety Research & Strategies

SRS has released its report, Public Safety at Risk: Bankruptcies Leave Legacy of Defects, Injuries and Deaths as part of its ongoing efforts to highlight the plight of the victims of the Chrysler and GM bankruptcies. Under the terms of each automaker’s transition from their old, debt-burdened incarnations to their liability-free future entities, hundreds of pending death and injury claims will be eliminated. But the latent – and in some cases, well-known, but never resolved – automotive defects will continue to manifest themselves in the 40 million GM and Chrysler vehicles built before Chapter 11, which remain in the U.S. fleet.

Continue reading →