General Motors and its legal team are working diligently to ensure plaintiffs are unable to proceed in a lawsuit over vehicles’ loss of value.
According to Reuters, plaintiffs argue their GM vehicles have lost significant value following a slew of recalls not only involving the ignition switch component, but other items, too. The plaintiffs’ lawyer stated the “avalanche of defects” has “harmed GM’s reputation as a safe and reliable manufacturer, meaning its customers would not be able to resell their vehicles for as much as when they bought them.”
For GM, lawyer Richard Godfrey stated if the plaintiffs are endorsed by the court, it would open a massive liability for any automaker, setting a precedent. Even if the recall is not related to safety, it would put an incredible burden on automakers to be held responsible for depreciation.
“This is not opening the door, it is destroying the door frame,” he said.
The plaintiffs’ claims are worth more than $10 billion, as the court weighs whether to dismiss the proposed class action lawsuit against GM. A decision is expected to arrive in a few weeks.
Comments
I appreciate the sentiment behind this lawsuit but really it would set a ridiculous precedent.
What’s more important to me is the ‘fix’ car owners are in anyway when selling used vehicles. An owner unloading a used car should be able to get basically what a car is worth vs. some absurd trade in value.
The way I see it an automaker made $$$ of the car the first time. If they accept a trade in they shouldn’t be able to rake it in YET again. A nice quick sale/profit, yes, but not offering us a $1000 for a car they’ll flip for $6000. The idea that the car loses $1000s in value the minute you drive it off the lot is a carmaker scam.
Another disgusting cash grab attempt.
Besides, used GM vehicles hold their value better than Ford and FCA vehicles from what I’ve seen, among others.
If I recall correctly, some of the vehicles included in the ignition switch “fiasco” saw their resale values *increase*. Would like to know how they plan on proving that it lost value when it, in fact, did not.
Not to mention – if any value was lost, it was more than likely due to regular depreciation, rather than any impact from recalls.
The resale value depends on the seller. If classic cars are sold for more than what they were bought, then any vehicle can be sold at a high value. Those plantiffs are mentally limited and they are the culprits who did the devaluation, not GM or the market. GM should sue them back for “devaluating” the company.