screwed on warranty by government
03-31-2009, 10:19 AM
#1
Instructor
Thread Starter
screwed on warranty by government
I thought that the government was going to cover warranties if GM goes bankrupt. However, today after reading more details, the government will back warranties on GM vehicles purchased during the "restructuring period" which officially begins March 30, 2009. So the rest of us are screwed if GM goes bankrupt! If you bought a vette last week then the government is saying "too bad!" My vette is less than a year old........I hope it is very reliable since I don't see any way GM is going to avoid going under.
03-31-2009, 10:22 AM
#2
Race Director
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If you are being screwed, it's not by the government, it's by the management of GM. You didn't buy your car from the gov't, did you?
Last edited by Walt White Coupe; 03-31-2009 at 10:25 AM.
03-31-2009, 10:22 AM
#3
Le Mans Master
I thought that the government was going to cover warranties if GM goes bankrupt. However, today after reading more details, the government will back warranties on GM vehicles purchased during the "restructuring period" which officially begins March 30, 2009. So the rest of us are screwed if GM goes bankrupt! If you bought a vette last week then the government is saying "too bad!" My vette is less than a year old........I hope it is very reliable since I don't see any way GM is going to avoid going under.
03-31-2009, 10:30 AM
#7
Instructor
Thread Starter
Modshak......how is the potential for having your warranty completely gone whining???? I do not think having to pay thousands of dollars for repair to a new car is whining but is a financial burden that none of us expected.
03-31-2009, 10:35 AM
#8
Drifting
If this happens I'll be able to start modding right away. No need to worry about voiding my warranty!! See there is a silver lining in every cloud. Just got to look for it! Cymbalta helps!
03-31-2009, 10:35 AM
#9
Team Owner
The government backing indeed only applies to those vehicles sold during the restructing period - - but even if GM uses a bankruptcy to shed debt and restructure contracts, there's no evidence at this point that they wouldn't honor existing vehicle warranties.
It is illogical, i Think, to assume GM would automatically alienate potential future buyers by rejecting warranty claims - - - I think you'll see those programs remain in tact. I don't know however whether they hold their own paper for extended warranties or whether they sell it off to a third party - - the latter may be an issue.
Certainly, I may be incorrect, but I don't think we're there yet as afar as definitive action on existing warranties.
Just my .02 - - -
It is illogical, i Think, to assume GM would automatically alienate potential future buyers by rejecting warranty claims - - - I think you'll see those programs remain in tact. I don't know however whether they hold their own paper for extended warranties or whether they sell it off to a third party - - the latter may be an issue.
Certainly, I may be incorrect, but I don't think we're there yet as afar as definitive action on existing warranties.
Just my .02 - - -
Last edited by CQRT; 03-31-2009 at 11:07 AM.
03-31-2009, 10:36 AM
#10
Le Mans Master
Do you really think the goovernment is going to let this happen.....scare tactics, my friend, scare tactics.....If you have even been in the car business you will know what I am talking about. Do you have any idea how much massive chaos and debt would be turned over if our warranties were null and void. Think about it, if you car is at the shop in need of a major repair and they wont foot the bill, most people will let these cars go back. Then we are right back where we started with the banks and credit lender again.
Just my 2 cents...
Steven Pope
Just my 2 cents...
Steven Pope
03-31-2009, 10:40 AM
#11
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Member Since: Feb 2006
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Automobile sales have tanked world wide. Seeking protection under bankruptcy law and reorganizing is the last thing GM management wants.
Sadly, we and our children's children are being screwed by the Government (I've read the proposed budget).
03-31-2009, 10:50 AM
#12
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St. Jude Donor '15
"In honor of jpee"
03-31-2009, 10:51 AM
#13
Le Mans Master
The new CEO is speaking right now and stated that GM will provide messaging for addressing Warranty Issues. He wants everybody to know that GM will honor warranties and doesn't want potential new car buyers to feel GM won't grant the warranties.
The skying is not falling!
Obama didn't run GM into the ground... GM did this and now they're fighting to restructure. They've got 60 days to announce all the re-org plans going forward.
The skying is not falling!
Obama didn't run GM into the ground... GM did this and now they're fighting to restructure. They've got 60 days to announce all the re-org plans going forward.
Last edited by darkmercury; 03-31-2009 at 10:58 AM.
03-31-2009, 10:51 AM
#14
Race Director
03-31-2009, 10:53 AM
#15
Le Mans Master
03-31-2009, 10:54 AM
#16
Melting Slicks
The government backing indeed only applies to those vehicles sold during the restructing period - - but even if GM uses a bankruptcy to shed debt and restructure contracts, there's no evidence at this point that they wouldn't honor existing vehicle warranties.
It is illogical to assume GM would automatically alienate potential fuure buyers by rejecting warranty claims - - - I think you'll see those programs remain in tact. I don't know however whether they hold their own paper for extended warranties or whether they sell it off to a third party - - the latter may be an issue.
Certainly, I may be incorrect, but I don't think we're there yet as afar as definitive action on existing warranties.
Just my .02 - - -
It is illogical to assume GM would automatically alienate potential fuure buyers by rejecting warranty claims - - - I think you'll see those programs remain in tact. I don't know however whether they hold their own paper for extended warranties or whether they sell it off to a third party - - the latter may be an issue.
Certainly, I may be incorrect, but I don't think we're there yet as afar as definitive action on existing warranties.
Just my .02 - - -
I totally agree here. It's not like they (GM) will disolve and be gone forever. After restructure (heck, there really won't be an "after", it will be a near transparent line) we will all continue to be serviced. I understand the fear and angst but a lot of this is unfounded. Granted, we are all in uncharted territory, Gm will need to go over the top to encourage new customers and retain old ones. I'm not even confident it will ever come to this but that's the optimist in me. On a side note: I was amazed last night when I heard that if GM does file, it will be the largest company in history to do so. I had no idea.
03-31-2009, 10:56 AM
#17
Team Owner
03-31-2009, 10:59 AM
#18
Team Owner
The proposed budget just adds more to it. What's different?
03-31-2009, 11:01 AM
#19
Race Director
Do you really think the goovernment is going to let this happen.....scare tactics, my friend, scare tactics.....If you have even been in the car business you will know what I am talking about. Do you have any idea how much massive chaos and debt would be turned over if our warranties were null and void. Think about it, if you car is at the shop in need of a major repair and they wont foot the bill, most people will let these cars go back. Then we are right back where we started with the banks and credit lender again.
Just my 2 cents...
Steven Pope
Just my 2 cents...
Steven Pope
03-31-2009, 11:05 AM
#20
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I thought that the government was going to cover warranties if GM goes bankrupt. However, today after reading more details, the government will back warranties on GM vehicles purchased during the "restructuring period" which officially begins March 30, 2009. So the rest of us are screwed if GM goes bankrupt! If you bought a vette last week then the government is saying "too bad!" My vette is less than a year old........I hope it is very reliable since I don't see any way GM is going to avoid going under.