GM Slapped With Lawsuits Totalling $10B Over Lost Value Claims

Cameron Aubernon
by Cameron Aubernon

General Motors twice experienced the business end of a leather glove Wednesday, when over 20 million consumers demanded satisfaction via two lawsuits totalling $10 billion in claims over lost resale value as a result of the February 2014 ignition switch recall.

Bloomberg reports two class actions would come GM’s way, the larger representing those who bought a GM vehicle between July 2009 and July 2014, whether or not they were still in possession of said vehicle.

The smaller lawsuit, meanwhile represents those who bought vehicles prior to the automaker’s bankruptcy in July 2009, though it may be muted depending on how a bankruptcy judge in New York rules next year regarding whether or not claims for accidents and economic losses made before the bankruptcy would be allowed to move forward.

According to the filing for the larger suit, “New GM’s” claims of being focused on safety and innovation were little more than a mask, resulting in diminished values of all GM-branded vehicles as a result of both the recall and the automaker’s “corporate culture of ignoring and concealing safety defects.”

For its part, GM vowed in an email to “vigorously defend against plaintiffs’ claims that GM vehicles have reduced resale value.”

Cameron Aubernon
Cameron Aubernon

Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.

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14 of 44 comments
  • Akear Akear on Oct 16, 2014

    In other bad GM news Volkswagon is now the worlds number two carmaker. GM should cut their loses and sell only Corvettes and Cadillacs.

    • APaGttH APaGttH on Oct 16, 2014

      Ya, because Cadillacs are selling so well. Forget China and all the Buicks they sell there. The future is in Corvettes and Cadillacs! Derp!

  • Kvndoom Kvndoom on Oct 16, 2014

    Don't depreciating assets, er, DEPRECIATE anyway? How are they going to determine value lost, especially if a known problem is fixed?

  • Akear Akear on Oct 16, 2014

    Cadillac is building the only american world class vehicles. I sat in a cruze and fusion the other day and was horrified at the cheapness. The cruze is the same kind of excrement the cobalt was. GM eats donkey balls.

    • See 8 previous
    • Duaney Duaney on Oct 19, 2014

      @VoGo Hey, I love my Chevettes! Seriously!

  • Duaney Duaney on Oct 19, 2014

    I couldn't find the post claiming that GM won't defend itself from these lawsuits, but to go back a few years, the Corvair story: GM lost the first Corvair lawsuit. They weren't prepared and weren't expecting it. But then they did prepare, and then for each subsequent lawsuit, they won, and didn't loose any more Corvair lawsuits.