Auto Industry today.
June 01, 2009
Topic: Miller Curtis & Weisbrod Blog
Today General Motors Corp filed for bankruptcy. The 100-year-old company was, for decades, one of the most powerful companies in the world. Now, employees and their families around the country are fearing for the worst. Following on the heals of Chrysler's bankruptcy, the American auto industry has obviously done a poor job of keeping up with it's competition.
And the same is true in the safety department of the big auto makers. Over the years, consumers have been terribly hurt or killed in cars like: the Ford Pinto which caught on fire from rear-end impacts; the Jeep CJ5 which rolled in sharp turns; the Ford Explorer/Firestone Tire combination, where a tire would de-tread and cause the SUV to rollover; and the Crown Victoria police cruisers, that also catch fire from rear-end impacts.
Apparently, cutting corners on safety did not save money for the companies. But, for the families affected by these tragedies, the damage continues even to this day.
Chrysler, in a behind-the-scenes move, is trying to escape responsibility as part of their bankruptcy filing. Chrysler has asked the Court to dismiss all lawsuits for all vehicles designed and/or sold prior to the bankruptcy filing. That means tens of thousands of vehicles on the road, with hidden dangers and defects, that might escape any responsibility. Hopefully, the Court will reject this effort. And hopefully, GM will not attempt the same trick.
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