Automakers Limiting Scope of Recalls Face Challenges
GM says it cannot be held liable for damages relating to vehicles produced before the “new GM” was created out of the 2009 bankruptcy.
A lawsuit claiming that General Motors fixed rear-end problems on police versions of 2007-08 Impalas — but not those owned by about 400,000 other drivers — should be thrown out, GM was quoted as saying in a Detroit News article.
GM said it cannot be held liable for damages relating to vehicles produced before the "new GM" was created. The "new GM" was formed in July 2009 in a government-sponsored sale of the good assets of "old GM" out of bankruptcy as part of a $49.5 billion bailout.
GM lawyer Benjamin Jeffers said in a court filing on Aug. 11 that the class-action lawsuit filed by a Pennsylvania owner in June should be thrown out because it attempts "to hold new GM responsible for old GM's liabilities."
New GM said it only agreed to warranty obligations of cars assembled before 2009. The suit "is trying to saddle new GM with the alleged liability and conduct of old GM," the response stated.
The lawsuit argues that the rear-end problems cause owners to burn through rear tires, and that GM should replace potentially faulty rear suspension rods. GM sold 423,000 Impalas over the two-year period. The suit is the latest challenge brought on by owners to automakers, who limit the scope of auto recalls or service campaigns.
The only owner currently named in the suit, Donna Trusky of Blakely, Pa., bought a new Chevrolet Impala in February 2008 and said the tires wore out within 6,000 miles. Her GM dealer replaced the tires and provided an alignment, but didn't disclose the spindle rod issue, she said. According to the suit, GM issued a service bulletin in 2008 for police versions of the Impala.
"Despite having knowledge of this premature wear problem, [GM] has not recalled the subject cars, which has required class members to pay the cost of fixing the defective spindle rods as well as for replacement tires and realignment," alleges the lawsuit that was filed last week.
GM's legal response says the issue is not that the spindle rods were manufactured incorrectly, but that the design was the problem. That, GM says, should prevent the lawsuit from going forward.
More Rental Operations

DriveItAway, Free2move Plan Shared Fleet Program for Independent Rental Fleet Operators
Vehicles would be placed with participating rental operations to support car renter demand and provide additional fleet capacity.
Read More →
Green Motion And U-Save Open Rental Operations In Guatemala
The brands will open their first rental car outlets in the country at La Aurora International Airport in Guatemala City.
Read More →
U.S. Business Travel Drives $623 Billion+ in Economic Impact as Spending Reaches $538 Billion
The data also underscores the industry’s strong multiplier effect across the U.S. economy, revealing that each dollar invested in business travel in 2024 generated $1.16 in GDP.
Read More →
Rental Fleet Sales Skating Just Above 2025 Levels
The U.S. economy's continued growth and positive business investment are creating a favorable environment for fleet vehicle demand.
Read More →Grow Your Rental Business Beyond Cars
Rental fleet operations are facing numerous evolving challenges and opportunities from AI technology to rate and revenue management, to customer service and business growth.
Read More →
Using AI to Create Clarity, Not Conflict, in Rental Car Damage
Rental companies still need people, policy, judgment, and thoughtful implementation, with operators remaining in control of the customer experience.
Read More →
Get Ready To Roll: No Stopping Self-Driving Rental Cars
The autonomous mobility technology revolution will move at its own pace, but sooner rather than later.
Read More →
Southwest Airlines Selects CarTrawler For Its Car Rental Booking Platform
The platform is designed to allow customers to compare and book rental vehicles more easily during the travel booking process.
Read More →
Cross-Pressures, Evolving Trends Drive 2026 Rental Car Industry
A combination of cautious economic behavior, shifts in the rental vehicle market, and technological influences are shaping car rental operator decisions.
Read More →
Government Affairs Executive Wins Leading Rental Car Industry Award
Robert Muhs started in the car rental industry with Avis Budget Group two years before the first International Car Rental Show.
Read More →
