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

Palm Beach Airport Code Change Creates Car Rental Distribution Gap
A test of rental searches under the old PBI and new DJT airport codes returned largely different sets of brands and vehicles, highlighting a potential distribution problem for rental operators.
Read More →
U-Save Continues Dominican Republic Expansion with Launch in Punta Cana
The new franchise location builds on U-Save’s existing Santo Domingo operation and will begin taking reservations for October 2026.
Read More →
When AI Books the Rental Car, Who Controls the Sale?
As AI moves from comparing rental rates to completing transactions, operators need to understand how travelers find, interpret, rank, and ultimately see their offers. (Part 2 of 2.)
Read More →
European Booked Car Rental Rates Fell 5%, Results Varied by Country
Ireland, Cyprus, and the United Kingdom saw steep declines, while booked rates rose in Poland and Hungary.
Read More →Is It Time to Rethink Rental Categories?
As traditional economy and compact cars disappear from the market, longtime rental operator Mike DeLorenzo asks whether the industry’s familiar vehicle categories still make sense — and what operators need to rethink along with them.
Read More →
Who Owns the Rate? AI Is Creating a New Distribution Problem for Car Rental
Generative Engine Optimization asks whether AI can find a rental company, but operators also need to know whether the agent inspected enough of the market, compared equivalent offers, and presented a rate the traveler can actually book. (Part 1 of 2)
Read More →
U.S. Business Travel Car Rental Rates Forecast to Rise Up to 2%
Improved fleet supply should limit pricing gains in 2026-27, while insurance, repair costs, and softer residual values continue to pressure rental operations, according to Amex GBT.
Read More →
Sixt Revenue Tops $2.4 Billion in First Half of 2026
Sixt’s first-half revenue surpassed $2.4 billion for the first time as demand outpaced fleet growth, lifting utilization and earnings despite weaker consumer sentiment in North America.
Read More →
In Memoriam: Bobby Klyce, Avis Licensee Legend
The longtime Birmingham Avis operator and 2018 Auto Rental News Impact Award recipient was remembered as an advocate for independent licensees and the broader car rental industry.
Read More →How to Build Custom Fleet Tools With AI and Vibe Coding [Webinar]
A new Automotive Fleet webinar explores how fleet managers are using AI and vibe coding to automate routine work and create simple operational tools without traditional programming skills.
Read More →
