GM financial woes have begun

Cobra21 wrote:
All vehicle manufacturers get hung with something sooner or later.
I don't know how a vehicle maker can plan for some people to hang
5 lbs. of stuff from a key chain, or maybe tow a 5,000 lb. trailer
with an Aveo or Corolla? It is very hard to plan on what people
do with their stuff.

Brian

Yes, all manufacturers have had problems. This is different in that it appears GM knew of the problem and covered it up. Again, this is not unusual. But to stack problems onto problems, the cover-up apparently continued through the bankruptcy filing which effectively prohibited people who suffered injuries and losses from the ignition failure from filing a claim against GM if those losses and injuries occurred before the bankruptcy filing. If you got injured before, you are SOL, had a wreck after GM emerged from bankruptcy, you have standing to file a claim. If GM management actively hid known liabilities (potential claims by injured parties) to effectively leave more assets to satisfy other creditors and allow themselves to emerge from bankruptcy as a more viable entity, that is fraud. When you figure the amount of the potential claims, it runs into the millions of dollars, so that fraud is a big fraud, the kind of fraud that earns the participants free government housing for the next few decades. And it is the kind of fraud that might just make the current GM liable for those hidden liabilities and that will effect the bottom line.