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Phone:  (919) 981-4475
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GM to Shut Down Some Plants This Summer

The news coming out of Detroit isn’t good. GM announced recently that it was shutting down some of its plants in an attempt to cut down on its inventory and meet government set deadlines. GM and Chrysler have been subsisting on taxpayer loans for far too long. As much as I am in favor of keeping these American icons in business, this can’t go on forever. It seems like a June deadline is key:

“GM is living on $13.4 billion in government loans and faces a June 1 deadline to cut its debt, reduce labor costs and take other restructuring steps. If it doesn’t meet the deadline, the company’s CEO has said it will enter Chapter 11 bankruptcy protection.”

Consumers are, and should be, concerned about the safety of their warranties should this happen. The problem then becomes, who do you turn to to enforce the law when you have a lemon? Manufacturers are the responsible parties under the North Carolina lemon law, and when their warranty is worthless because you have a lemon vehicle, your only recourse is to require the manufacturer to either buyback or replace your vehicle. If the manufacturer is bankrupt, then the government may be opening itself up to a host of lemon law complaints that it didn’t anticipate. It remains to be seen how it plans to address these issues, which are serious business to those who have to deal with a chronically defective vehicle.

I hope that we don’t have to cross this bridge, but I have doubts as to whether even such drastic measures as plant closings will be enough to fix the damage caused by years and decades of poor business planning and decision-making by GM.

In the meantime, if you have purchased a new vehicle, GM or otherwise, that isn’t working the way it should, it might be a lemon. Call us today.