Lemon Law Blog

Amidst tons of debt, the worst sales figures in 25 years, and tens of thousands of layoffs, a new General Motors is emerging and according to CEO Fritz Henderson, the name may be the only similarity between the old company and the new.

The new GM was “born” this morning in a New York press conference, and Detroit Free Press reports that Henderson outlined some major changes right out of the gate.  77-year old Bob Lutz, once retired, is now stepping back into the company fold as Vice Chairman in charge of global design, advertising and communications. Henderson is also laying off 34% of the executive management (approximately 450 executives), and disbanding the Automobile Strategy Board where the company had made most major decisions on new automobiles. Henderson himself will take charge of North American operations.

CBS News is reporting that up to 14,000 hourly workers will also be let go and 2,300 of the manufacturer’s 6,000 dealerships may close.

On the positive side, Henderson says the company will focus on customers, cars and, culture, lauching a “Tell fritz” website to allow the public to share their concerns with senior management, and monthly road trips to “listen to the questions, ideas and concerns of the people who matter most.”:  The company is also in the preliminary stages of a possible partnership with ebay to test selling vehicles via on-line auction.

GM is sill in the middle of selling off Hummer, Saab and Saturn.  However the new GM will be responsible for any lemon law and breach of warranty claims that arise from these vehicles in the years they were part of the GM family.

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As previously reported in the Lemon Law Blog on June 4th, General Motors intends to accept responsibility for all lemon law and breach of warranty claims of past, present and future leases and sales.  A Reuters report confirmed General Motor’s responsibility, as the manufacturer moves forward with a bid to win court approval to reorganize the company.

The new GM would be 60 percent owned by the US government, 17.5 percent by the United Auto Workers union and 11.7 percent by the governments of Canada and the province of Ontario.   Under the reorganization plan, the new company would be created by late August.

In the meantime, we are moving forward with all General Motors lemon law and breach of warranty claims, including Pontiac, Chevrolet, Buick, GMC, Hummer, Saturn, and Cadillac. We currently have a system in place where we can advocate quickly for our clients’ rights, with cases being expedited efficiently.  We have been assured that GM is committed to making sure this continues and we applaud the company for continuing to make consumers’ rights a priority. Remedies include full repurchase, or full or partial refunds and as always the legal help is completely cost-free. 

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1-800 LEMON LAW attorneys Bob Silverman and Amy Bennecoff have received a significant amount of exposure and kudos this past week for working with Chrysler’s and Fiat’s attorney to ensure lemon law and breach of warranty protection for Chrysler, Dodge and Jeep drivers.  Kimmel and Silverman was the only lemon law firm in the Nation to be involved in these meetings.  

In addition to interviews with Comcast, Philadelphia Inquirer, and Automotive News, Bob Silverman and our client Bob Buchecker were featured in this Action News segment which aired Friday night on WPVI TV in Philadelphia.

Get the full story by clicking here.

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Good news for GM Owners–In the company’s proposed Master Transaction Agreement, it specifically says that GM “will continue to accept all liabilities under express written and limited new vehicle warranties, certified used vehicle warranties, and pre-owned vehicles warranties delivered in connection with the sale of new, certified used, or pre-owned vehicles manufactured or sold by Sellers or Purchaser prior to or after the closing.”

What does that mean exactly?  It means that unlike the previous Chrysler bankruptcy, where lemon law representation was temporarily stayed and settlement checks were bounced, General Motors is still devoted to assisting any clients who suffer repeated problems under warranty, knowing that continued customer loyalty will result in a resurgence of the brand.

Our Firm is still handling lemon law and breach of warranty claims for all General Motors drivers in Pennsylvania, New Jersey, Delaware, Ohio, New York, Connecticut, Massachusetts, and New Hampshire. We have a system in place where we can advocate quickly for our clients’ rights, with cases being expedited efficiently.  We have been assured that GM is committed to making sure this continues and we applaud the company for continuing to make consumers’ rights a priority.

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Kimmel & Silverman Lemon Law Attorneys Robert M. Silverman and Amy L. Bennecoff spent a large portion of last week in New York working with Chrysler counsel Jones Day and Fiat counsel Sullivan Cromwell to include specific language regarding consumer protection in the Master Sales Agreement between the two companies, scheduled to take effect Monday, June 15.

The new amendment, in paragraph 19 of the order, specifically outlines that the New Chrysler will be responsible for all existing and future lemon law and breach of warranty claims filed by consumers who suffer repetitive non-conformities with their Chrysler, Dodge or Jeep vehicles.   This means that our numerous clients whose claims were stayed or whose settlements were stalled as a result of the filing will be taken care of, and we will be able to continue to provide cost-free lemon and breach of warranty representation to all Chrysler, Dodge and Jeep consumers who need our services in the future.  Both counsel attributed Silverman and Bennecoff as the only lemon law attorneys in the Nation who were directly responsible for helping to make this amendment a reality.

If you are suffering problems with your Chrysler, Dodge or Jeep vehicle, or if parts have been on back order resulting in your vehicle being in the shop for a long period of time, contact us to discuss your rights to remedy or recourse.

You can read all about the big news by clicking here.

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No doubt you have read all about the Chrysler bankruptcy in the headlines.  It has been covered by print outlets and blogs throughout the Country, or perhaps you heard Kimmel and Silverman attorney Bob Silverman discuss the situation on the local news.  All current Chrysler, Dodge and Jeep owners and anyone who intends to purchase one of these cars in the near future has hit a pothole when it comes to their consumer rights under State Lemon Law and Federal Warranty Law. 

As a result of the manufacturer filing in bankruptcy court, all lemon law and breach of warranty claims currently in litigation have been “stayed” or stalled until we receive instruction from the court on how to proceed.  But that’s not all; we have over 20 consumers waiting for complete repurchases or refunds, agreed upon before the manufacturer filed for bankruptcy, who are now stuck.  These folks each have signed releases from the manufacturer.  One client is a handicapped woman who desperately needs her Dodge conversion van to get around, and it has been in the shop numerous times for transmission problems. Another client, who has faced tough financial problems himself, already turned his car in and was waiting for his repurchase, and now he has no car, and no money. Plus, being that his creditor was never paid, he is facing the prospect of his lemon car being repossessed and ruining his credit.  Dozens of other folks have received checks which have bounced and these checks were dated prior to the 4/30 filing.

Currently, Kimmel and Silverman is working extensively on efforts to make sure Chrysler, Dodge and Jeep consumers are protected.  The manufacturers stance (and the PR statement we have heard from Washington DC and DCC headquarters) is your cars will be fully covered under warranty.  But, that’s not really the case.  If you can find a dealer that hasn’t closed, and they do have the part you need in stock (doubtful as a result of the closed factories and stop in production), what happens if they still can’t fix the problem?  If the check engine light keeps coming on?  If the water leak keeps reoccurring, resulting in mold?  If the windows still don’t go down?  If the car still won’t start?  And you are back one, two, three, four times?  Well, under normal circumstances, you would be able to use your rights under State and Federal Law to seek recourse, either a complete buyback, a new vehicle, or monetary damages to reflect the diminished value of the car as a result of the problems that occurred.  But that’s not the case right now.  Right now, Chrysler feels you are entitled to nothing other than continuous repair.  And, the new company that is looking to take over Chrysler is NOT interested in taking over these responsibilities; they do not want to compensate all the distressed drivers who have suffered defects or are currently suffering defects with their products.  The language in their motion is very unclear and contradicts itself.

We are currently working on a motion in an attempt for Chrysler to establish a litigation trust for those people who were entitled to recourse under warranty claims.  We will keep you abreast of our progress. In the meantime, we encourage you to reach out to your State’s consumer protection division and attorney general office and make sure they are aware of this situation.  Ask them what they are doing to advocate for consumers in perhaps one of the most troubling situations we have ever seen.

Confused? No doubt.  if you feel you have a potential DCC lemon law or breach of warranty claim and you would like to discuss this situation and your rights further, please e-mail us or call 1-800 LEMON LAW (1-800-536-6652). (Our firm handles claims in Pennsylvania, New Jersey, Ohio, Delaware, Maryland, Connecticut,  Massachusetts, New York and New Hampshire.  For other states, please visit www.lemonlawamerica.com.) We will be more than happy to go over your matter with you. 

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