GM hit with $10 billion lawsuit saying recalls damaged brand

Reuters/yahoo.com ^ | July 18, 2014 | Jessica Dye and Jonathan Stempel

[grundle]

(Reuters) - A new lawsuit says General Motors Co should compensate millions of car and truck owners for lost resale value, potentially exceeding $10 billion, because a slew of recalls and a deadly delay in recalling cars with defective ignition switches has damaged its brand.

According to a complaint filed on Wednesday with the federal court in Riverside, California, GM hurt customers by concealing known defects and valuing cost-cutting over safety, leading to roughly 40 recalls covering more than 20 million vehicles this year alone.

It said this has caused a variety of late-model vehicles to lose roughly $500 to $2,600 in resale value.

Hagens Berman Sobol Shapiro, which filed the lawsuit, said the case could be worth more than $10 billion, and is the first seeking to force GM to pay a potential 15 million car and truck owners, not just those whose vehicles were recalled, for damage to its brand and reputation.

[SgtHooper]

Na, GM would borrow from Odumbo, and simply not pay it back, like good little demonRats.

[1Old Pro]

Let the company go bankrupt and reorganize after they wipe out their defined benefit and healthcare liabilities to unions.

We have plenty of competition in the auto industry, no need to prop up one company that made bad business decisions, let the market prevail.