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GM Seeks Court Protection from Ignition Switch Claims

HeadlineApr 17, 2014

General Motors is asking a court to shield it from legal liability for all conduct predating its 2009 bankruptcy. A motion filed this week seeks recognition of the split from “Old GM,” into the post-bankruptcy “New GM.” If approved, GM’s request could protect it from claims over the defective ignition switch linked to at least 13 and possibly hundreds of deaths. General Motors knew of the defect for over a decade but only issued a recall earlier this year. The company’s request was disclosed in a federal lawsuit filed in Texas over the defect. In its court motion, GM says: “Just like the other 'ignition switch actions' that other plaintiffs have filed in the wake of public reports regarding the outstanding recall, this case relates to a vehicle designed, manufactured, originally sold and advertised by Old GM.” GM has yet to reply to dozens of questions about the defect submitted by the National Highway Traffic and Safety Administration earlier this month. The auto giant is paying a $7,000 fine for each day it fails to provide the answers in full. Speaking to reporters, GM CEO Mary Barra denied that the company is stonewalling.

Mary Barra: “We work on those every day. Some of the questions are really dependent, to have the full complete answer, on getting through the investigation, but we are trying to be as responsive as possible. But we will not sacrifice the accuracy and the right detail of the answers, because it’s very important. This is a very complex situation. It’s very important. But we are working on it with a dedicated team that works around the clock to provide the answers to NHTSA.”

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