Obama Backs Chrysler/GM Immunity for Dangerous Cars , Vans and Trucks
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In an extraordinary move, it appears that the Obama Treasury Department is backing a plan that allows Chrysler and GM to emerge from bankruptcy with complete immunity for all deaths and catastrophic injuries caused by their defective cars, vans and trucks. In the case of FIAT, this immunity would extend to this successor company of Chrysler, despite FIAT's willingness to accept the responsibility.
What does this mean? This means that if you own a Chrysler or GM product, and you or a loved one suffers serious injury or death because it was defective, you will have no way to recover for those injuries or losses after the bankruptcy proceedings are concluded. Sadly, you will only be able to recover the cost of the defective part under warrranty, as the Obama administration has only fought to protect your warranty rights, not your safety.
This is an incredible move that has no parellel in history. Typically, in circumstances where the company seeks to emerge from bankruptcy and continue in its business, a fund is created as part of the bankruptcy to take care of past and future claims. Such a fund allows for those truly injured by defective products manufactured by the company to have some level of recourse, though it may not be on a dollar for dollar parity with what may have been recovered in a civil lawsuit. Such a fund also provides benefit to the company in that the potential liability is essentially capped, and losses paid out are not reflected in the quarterly profit/loss reports. Another alternative is to fund the purchase of an insurance policy that covers these potential losses; i.e., move the risk to another entity.
Are you safe if you do not own a Chrysler or GM product? No. If a defective GM or Chrysler vehicle looses steering, crosses the road and hits you head-on, these companies are immune from liability. Interestingly, the "little guys" that manufactured the components of the car may have responsibility, but the "Big Guys" have none.
In the name of "economic recovery" are we turning the notions of product safety and corporate responsibility on their heads? With all the help the American taxpayer has given these companies, shouldn't they be willing to stand behind their products, and not turn their backs on taxpayers killed or debilitated by their blunders. As a good parent, what car do you counsel your child to purchase now? American? We are surprised by the administration's deaf ear on this subject. Will the same thing occur in health care?
For an excellent article see "Chrysler and GM Bankruptcies: Wiping Out the Rights of All Consumers Who Drive These Cars," published by the Center for Justice Democracy. (http://centerjd.org). Also in the Huffington Post at http://www.huffingtonpost.com/2009/06/08/fiat-would-have-assumed-v_n_212046.html