By on July 23, 2015

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General Motors disclosed in its quarterly Securities and Exchange Commission filing Thursday that the Federal Trade Commission is investigating the automaker for selling used cars under recall, the Detroit News is reporting.

According to the automaker, the FTC notified GM that it was investigating “certified pre-owned vehicle advertising where dealers had certified vehicles allegedly needing recall repairs.”

The filing acknowledges the investigation is connected with the 2014 recall of 2.59 million cars with faulty ignition switches that could turn the car off while driving, disabling its airbags. So far, 124 deaths have been linked to the defect.

The investigation is significant partially because a bill winding through Congress would significantly change penalties associated with defective cars. This week, a Senate committee shot down a proposal that would have forced used car dealers to complete recall repairs on vehicles for sale. A similar measure compelling rental car companies to fix defective cars in their fleets survived.

GM is being investigated by the U.S. Department of Justice as well as attorneys general in every state for issues related to the faulty ignition switches. GM could be fined and face criminal penalties from the Justice Department.

“We continue to investigate these matters and believe we are cooperating fully with all requests for information in ongoing investigations. Such investigations could in the future result in the imposition of material damages, fines, civil consent orders, civil and criminal penalties or other remedies,” GM wrote in their filing.

 

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10 Comments on “Feds Investigating General Motors Over ‘Certified’ Used Cars...”


  • avatar
    APaGttH

    The whole “CPO” thing is a ripoff top to bottom. I’ve always wondered how any dealer can CPO a car, and when you pull the cap off the master cylinder you smell burned brake fluid, the coolant is clearly not new, and the air filter isn’t a nightmare, but clearly seen more than, “ehhh, good enough,” miles.

    When you look at what the checklist is for CPO on a car, and how much, “by the book” dealer time is given – the whole program is a load of crap that is great at cashectomies on customers.

    GM got caught with their hands in the cookie jar again – what a shock.

    • 0 avatar
      bball40dtw

      It depends on the program. Lexus and Lincoln are better than most, but a CPO Lincoln doesn’t sell for any more than a used one. All it really means to me is that the dealer cleaned up the car, fixed anything glaring, gave it an extended warranty, and is selling it a better interest rate. In the case of our MkT, that means a full warranty to 100K miles, or August 2017, and a 0.9% interest rate up to 72 months.

      • 0 avatar
        brn

        bball40dtw,

        I’m sure every manufacturer has such a list, but here’s Lincoln’s:
        http://www.lincoln.com/resources/lincoln/global/pdf/cpo/LCPO01015_FMFL1388000A_L_VIC_NCR_R02.pdf

        I wish I’d seen it before negotiating for a hail damaged (wasn’t hail damaged when the negotiations started) “certified” MKZ. I wound up not getting the car, but it would have been good to have these details anyway. I’d have made them bring the car up to spec or remove the “certified” claim.

        I did wind up buying a Ford product and purchased an extended (7yr/100K mile) Ford warranty. Some pretty good deals on Ford warranties out there if you shop around separately for the warranty.

      • 0 avatar
        bball40dtw

        Right, the CPO warranty is just Ford PremiumCare. Like you said, those can be found for cheap.

        I got lucky with our MkT. It had been originally purchased and serviced at that dealership, so I was able to get a good history on it. I had such a good experience that I’ve referred them quite a bit of business.

  • avatar
    DeadWeight

    Today’s General Motors *Mark Of Excellence* and Chevrolet’s *Find New Roads (To Catch Fire On* is brought to you by the all new 2015 GMC Canyon; The All-New Canyon, if it spontaneously burns to a crispy shell, GM will blame you reflexively and deny warranty coverage:

    http://coloradofans.com/forums/145-2015-chevrolet-colorado-2015-gmc-canyon-photos-videos/250938-2015-canyon-caught-fire-photos-inside-8.html

    http://gfunktastic.kinja.com/how-not-to-treat-your-customers-gm-edition-1719671835/1719777305

  • avatar
    Gardiner Westbound

    And the Detroit Three wonder why their image for quality and integrity sucks.

  • avatar
    John

    Ah, GM – the cavalcade of cretins continues.

  • avatar
    scwmcan

    So let’s see, the company puts out a checklist of things that have to be right before the car be certified. The dealers don’t do these checks and “certify” them anyway, and this is GM’s fault and not the independent dealers, got it. What is to stop these dealers from reporting to GM or another car manufacturer that the recalls were done even if they weren’t. It seems to be dishonest dealers ( which could be from any make) not necessarily a GM problem, unless There is some process that GM doesn’t do that every other manufacturer does that insures their dealers are honest ( got ne s for you very few are).


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