See if you can follow along with this:
The "New GM" has agreed to take on future liability claims on vehicles sold by "Old GM". Before this announcement, "New GM" would not be liable for any vehicles sold by "Old GM". "New GM" is the company that would emerge from bankruptcy with all the profitable assets of "Old GM", "Old GM" would be the company left in Bankruptcy with all the unprofitable assets (and liabilities including existing and new lemon law claims)
Confused?
Maybe this article can explain it:
NEW YORK (AP) -- General Motors Corp. has agreed to take on responsibility for future product liability claims, removing what could have been a sizable roadblock on the automaker's path to a quick sale of its assets and emergence from Chapter 11 bankruptcy as a new company.
As part of its government-backed restructuring plan, GM wants to sell the bulk of its assets to a new company and leave behind unprofitable assets and other liabilities such as product-related lawsuits. A hearing on the proposed sale is scheduled for Tuesday.
Read more at Yahoo! News
This latest "concession" (not) is in response to consumer protection agencies and numerous State Attorney Generals threatening to fight the "New GM" from emerging from Bankruptcy quickly. Add this "New GM Old GM" plan to the fact that GM is forcing their remaining dealers to sign new dealer agreements that are heavily weighted to GM (and against most State's franchise laws), and you have a pretty good picture of what a Government Owned Corporation can get away with.
Health Care anyone?
Cook Yourself Thin Diet
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