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

Car Rental Rates Forecast to Rise 3.6% in 2026 Before Easing in 2027
Car rental rates are projected to rise less than airfares and hotel rates in 2026, then become the only major travel category forecast to decline in 2027, according to projections from GBTA and ALTOUR.
Read More →
Avis Cuts Fleet as Summer Demand Trails Expectations
Avis Budget Group increased second-quarter earnings despite lower Americas revenue and softer-than-expected summer demand. The company also expanded Avis First and advanced its autonomous fleet operations with Waymo.
Read More →
Why Bookings Are Only the Start of the Rental Day
A reservation captures demand. The operating test is whether the business can keep the customer, vehicle, commercial terms, and next action aligned until the rental is closed.
Read More →
This Is the Oldest Car Rental Advertisement You’ll Ever See
This ad for Saunders Drive it Yourself, believed to be the first car rental company in the U.S., was found in an Omaha phone book from 1926.
Read More →
The Desk Upsell Is Costing Operators More Than it Earns
Counter upsells generate revenue, but they can also slow transactions, erode trust, and cost repeat business. Fully inclusive pricing may offer operators a better path to long-term value.
Read More →
U-Save Expands Indian Ocean Presence with New Master Franchise for Mauritius
The franchise has been acquired by Mauritian travel entrepreneur Umarfarooq Omarjee, an established figure in the island's tourism and mobility sector.
Read More →
Global Carsharing Fleet Projected to Reach 768,000 Vehicles By 2030
A new Berg Insight forecast outlines several business models driving the projected growth in public carsharing worldwide through 2029.
Read More →
Rental Car Fleet Sales Show Mid-Year Strength
June gains ensured rental fleets closed out the first half of 2026 in positive territory.
Read More →
Surprice Mobility Opens Corporate Rental Station at Milan Malpensa Airport
The Milan opening is part of Surprice Mobility's broader strategy to expand its corporate operations while increasing the use of technology across its network.
Read More →
Brazilian Executive MBA Targets Growing Domestic Rental Car Industry
Rental car companies face a unique combination of challenges that are rarely addressed in traditional programs.
Read More →
