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-   -   What Happens to My Warranty if GM Files for Bankruptcy? (http://www.saturnfans.com/forums/showthread.php?t=139231)

Charlie 05-31-2009 11:04 PM

What Happens to My Warranty if GM Files for Bankruptcy?
 
A new feeditems entry has been added:

[drupal=3101]What Happens to My Warranty if GM Files for Bankruptcy?[/drupal]

[quote]Chris Woodyard from USA Today: General Motors' potential bankruptcy filing is sure to prompt questions for the millions of consumers who own GM vehicles or for folks who are thinking about buying a new GM car or truck.[/quote]

Ashkicker 06-01-2009 02:45 PM

Re: What Happens to My Warranty if GM Files for Bankruptcy?
 
I find the article interesting, but perhaps a little too optimistic.

A warranty is a contractual (either express or implied) obligation of the manufacturer/seller. Bankruptcy changes the landscape to the extent that
buyers lose their contractual protection, and under law their claims, if any,
become unsecured debts against of the estate of the bankrupt corporation.

Some warranty obligations such as EPA emission performance are mandated by the government, but again it is the bankruptcy court that establishes how the assets of the corporate entity will be allocated in the priority of debt satisfaction.

That said, President Obama promised that the US Government would stand behind warranty obligations of the now bankrupt auto manufacturers. On this basis I would anticipate that the Bankruptcy court will allocate a portion of the GM estate for future claims, both contractual and tort liability in genesis. If the warranty fund allocation is depleted, then under the President's directive, then I suppose the US Treasury will simply plow in some more tax money. (After $80 billion committed to GM, what is a few hundred million for warranty obligations?)

On this basis, other than possible inconvenience in finding a repairer to
perform the warranty work, nothing much should change.

I would urge caution in reliance that replacement parts will be readily available. Sure, on vehicles such as the Saturn Aura and the Chevrolet Silverado both OEM and aftermarket parts should be readily available.
Nevertheless, does anyone really think that proprietory parts for vehicles such as the Sky or Astra will be easy to come by? I would expect at the minimum logistics issues in getting parts to the repairer.

Astra my be more problematical. Sales volume to date has been minimal, and no retailer in his/her right mind would tie up money in low demand parts.
Similarly, no aftermarket manufacturer would have incentive to clone non OEM parts. Presumably most of the parts for the Astra are interchangable with the European models presently sold by Opel, but keep in mind that Opel is also very much a bankrupt company, and their is nothing in US law to compel a possible buyer such as Magna to retain the platform or keep making parts unique for the American version of the Astra marketed by Saturn.

I recognize that many dealerships are still paying floor plan payments on their accumulation of unsold 1008 Astra's, but I would be very hesitent to purchase one when there are so many alternatives that present less risk.

Sad indeed, but under other circumstances Saturn if left alone as a seperate company, could have probably survived the demise of GM.

RIP

s-seriesguy 06-01-2009 05:49 PM

Re: What Happens to My Warranty if GM Files for Bankruptcy?
 
If there are people out there truly wondering this they must lack any kind of common sense at all. Obama already said that the gubbimint has got dis

shane 06-01-2009 06:00 PM

Re: What Happens to My Warranty if GM Files for Bankruptcy?
 
[URL="http://www.thetruthaboutcars.com/gm-suspends-dealer-warranty-payments/"]I hope this turns out to be completely false.[/URL]

L55 06-01-2009 07:07 PM

Re: What Happens to My Warranty if GM Files for Bankruptcy?
 
The above link(story) is a total non issue....even if its true, the judge will okay payments on Wednesday. Just think of it as a cheque getting tied up in the post office for an extra 48 hours.

Warren 06-02-2009 03:04 PM

Re: What Happens to My Warranty if GM Files for Bankruptcy?
 
For those of us in Canada, please remember, GM of Canada has not declared bankruptcy so, other than perhaps he previously mentioned parts difficulties, Saturn owners in Canada should have no warranty problems.

SaturnsIon 06-02-2009 03:42 PM

Re: What Happens to My Warranty if GM Files for Bankruptcy?
 
[QUOTE=Warren;1460031]For those of us in Canada, please remember, GM of Canada has not declared bankruptcy so, other than perhaps he previously mentioned parts difficulties ......[/QUOTE]

Hi Warren, do you really believe that finding parts will be an issue (post bankrupcy). I understand that by law the manufacturer has to make parts available for 10 years after the model year, but if, for example, Astra does not return to North America for another model year, do you think parts prices will rise and availablity go down to the point that you will have to wait on th order of weeks to get the parts from oversees ?

When ever I ask the dealers this question they tell me to rest asured. Pointing to Oldsmobile and Daiwoo exmples.

unit731 06-02-2009 04:10 PM

Re: What Happens to My Warranty if GM Files for Bankruptcy?
 
Parts will be an issue.

I don't know about Canada, but in US the manufacturer does not have to make parts available for 10 years. Safety/emissions parts yes. Trim pieces, interior, radios, etc. no.

Buy yourself a clunker same year model for parts. Some already have done so.

Check out the auction sites. Some Saturn models have gone way up in price.

Charlie 06-02-2009 10:53 PM

Re: What Happens to My Warranty if GM Files for Bankruptcy?
 
[QUOTE=unit731;1460071]Parts will be an issue.

I don't know about Canada, but in US the manufacturer does not have to make parts available for 10 years. Safety/emissions parts yes. Trim pieces, interior, radios, etc. no.

Buy yourself a clunker same year model for parts. Some already have done so.

Check out the auction sites. Some Saturn models have gone way up in price.[/QUOTE]

Perhaps, but only because of the age of the S-Series cars. There are stockpiles of parts at Saturn's warehouse in Spring Hill, TN for the newer Saturns. GM's bankruptcy filing had no direct impact on the Saturn warehouse, or the price of used Saturns.

Charlie

wolfman 06-03-2009 07:26 AM

Re: What Happens to My Warranty if GM Files for Bankruptcy?
 
[QUOTE=Ashkicker;1459418]

Astra my be more problematical. Sales volume to date has been minimal, and no retailer in his/her right mind would tie up money in low demand parts.
Similarly, no aftermarket manufacturer would have incentive to clone non OEM parts. Presumably most of the parts for the Astra are interchangable with the European models presently sold by Opel, but keep in mind that Opel is also very much a bankrupt company, and their is nothing in US law to compel a possible buyer such as Magna to retain the platform or keep making parts unique for the American version of the Astra marketed by Saturn.

I recognize that many dealerships are still paying floor plan payments on their accumulation of unsold 1008 Astra's, but I would be very hesitent to purchase one when there are so many alternatives that present less risk.

Sad indeed, but under other circumstances Saturn if left alone as a seperate company, could have probably survived the demise of GM.

RIP[/QUOTE]

The Astra (built by Opel in Europe) has been one of the best selling cars in Europe for nearly a decade. Astra parts will not be a problem.

Chazberry 06-03-2009 10:21 AM

Re: What Happens to My Warranty if GM Files for Bankruptcy?
 
[QUOTE=Ashkicker;1459418]President Obama promised that the US Government would stand behind warranty obligations of the now bankrupt auto manufacturers.

On this basis, other than possible inconvenience in finding a repairer to
perform the warranty work, nothing much should change.[/QUOTE]

Sounds good in theory, but the reality is no minor detail. Right now there is only one dealer left in my county still doing warranty work.

Kind of analogous to something Ritz used to say:

"Relying on the government to safeguard your retirement money is like relying on a pothead to safeguard your Fritos."

SaturnsIon 06-03-2009 10:37 AM

Re: What Happens to My Warranty if GM Files for Bankruptcy?
 
[QUOTE=Charlie;1460247]Perhaps, but only because of the age of the S-Series cars. There are stockpiles of parts at Saturn's warehouse in Spring Hill, TN for the newer Saturns. GM's bankruptcy filing had no direct impact on the Saturn warehouse, or the price of used Saturns.
[/QUOTE]

Is Spring Hill, TN the main warehouse for Open based models as well (like the Astra).

[QUOTE=wolfman;1460370]The Astra (built by Opel in Europe) has been one of the best selling cars in Europe for nearly a decade. Astra parts will not be a problem.[/QUOTE]

Not a problem in Europe, but can parts potentially become a problem in North America. By problem I am concerned about availability (or wait time to get the part) and price (supply and demand).

Is there any concern about availability of mechanics who speciallizing in Opel cars, say five years down the road, to service Opel cars that were manufactured in GMs European facilities. Especially if new models of European made Opels are not sold in North America anymore.

unkle bik 06-03-2009 10:40 AM

Re: What Happens to My Warranty if GM Files for Bankruptcy?
 
Take it to your Congressman for warranty work...

Ashkicker 06-04-2009 12:10 PM

Re: What Happens to My Warranty if GM Files for Bankruptcy?
 
[I]I don't know about Canada, but in US the manufacturer does not have to make parts available for 10 years. [B]Safety/emissions parts yes.[/B] Trim pieces, interior, radios, etc. no. [/I]

I am not convinced the successor to the bankrupt GM would be obligated to maintain safety and emmission parts for pre-bankruptcy produced products.
Bankruptcy protection should supercede any prior legal obligation to do so. Claimants seeking availablity of such parts may find themselves nothing other than unsecured creditors in the bankruptcy action. The real problem is that the bankruptcy case will be closed long before some purchasers find themselves in need need for such parts.

2NDSOUT 06-04-2009 12:26 PM

Re: What Happens to My Warranty if GM Files for Bankruptcy?
 
Anyone who is concerned with Bankruptcy and how it pertains to GM/Saturn, needs to take a look at the GM Court Document website:

[url]http://www.gmcourtdocs.com/index.php3[/url]

This a GM website that has ALL of the court documents and proceedings as they happen with GM through the Bankruptcy. Alot of Legal Documentation, but I am sure that if you take the time to read through, some or all of your questions will be answered.

Chazberry 06-05-2009 04:52 AM

Re: What Happens to My Warranty if GM Files for Bankruptcy?
 
[QUOTE=2NDSOUT;1461143]This a GM website that has ALL of the court documents and proceedings as they happen with GM through the Bankruptcy. Alot of Legal Documentation, but I am sure that if you take the time to read through, some or all of your questions will be answered.[/QUOTE]

Ya know - all of this razzle-dazzle, mumbo-jumbo, in-a-perfect-world, yadda yadda yadda gives me no comfort. The only thing that matters is the 'real world' experience - and so far, THAT experience sucks the big one! And I see it getting a whole lot worse before it gets better. I'm am REALLY sorry I paid extra for an extended warranty because that is only going to mean I have to put up with a couple more years of BS.

Let's turn the clock back and employ some hindsight. Let's pretend it's 2007. Here I am ready to purchase one of the last polymer vehicles ever to be built by Saturn. I'm all ready to sign the papers and a little birdie whispers in my ear and says, "You know, GM is gonna close down the Saturn division in 2 years. And btw - GM is gonna go Chapter 11." Now you're gonna tell me any clear-headed individual is gonna say, "Pffft - minor details! Where do I sign?"

Fast forward back to the present: The way I see it, if anyone buys a GM vehicle today is either: Very naive, very risk tolerant, a glutton for punishment, or just plain NUTS! But I could be wrong - time will tell . . .

s-seriesguy 06-05-2009 11:08 PM

Re: What Happens to My Warranty if GM Files for Bankruptcy?
 
[QUOTE=Chazberry;1461606]Fast forward back to the present: The way I see it, if anyone buys a GM vehicle today is either: Very naive, very risk tolerant, a glutton for punishment, or just plain NUTS! But I could be wrong - time will tell . . .[/QUOTE]
And those who avoid them strictly just becuase of the reasons you listed must go around paranoid everyday though life. Seriously how has it made things different for current owners or someone who is wanting to purchase one?

Chazberry 06-06-2009 09:17 AM

Re: What Happens to My Warranty if GM Files for Bankruptcy?
 
[QUOTE=s-seriesguy;1462226]Seriously how has it made things different for current owners or someone who is wanting to purchase one?[/QUOTE]

For this current owner, where I used to have 5 dealers in my vicinity where I could go for warranty work, I now have only one. And it's the one I swore I would never use again because of bad experiences. And since this is the only one left in my county, it's significantly harder to get an appointment. And when you get one, they take 2 days to replace a defective gas cap (real experience). My friendly parts man worked at the only dealer I could trust, and they sell VWs now. So for both warranty work and other service, and finding replacement parts, it has become a considerably bigger hassle.

Robor007 06-06-2009 09:57 AM

Re: What Happens to My Warranty if GM Files for Bankruptcy?
 
[QUOTE=s-seriesguy;1462226]And those who avoid them strictly just becuase of the reasons you listed must go around paranoid everyday though life. Seriously how has it made things different for current owners or someone who is wanting to purchase one?[/QUOTE]

Is it paranoia to be considered about dealerships closing and models being eliminated? I think not.

s-seriesguy 06-06-2009 12:36 PM

Re: What Happens to My Warranty if GM Files for Bankruptcy?
 
[QUOTE=Robor007;1462341]Is it paranoia to be considered about dealerships closing and models being eliminated? I think not.[/QUOTE]
Maybe to some of you it is. Part will be available for a long time and there are GM dealers that will do service. I don't see how models being eliminated is going to make a difference to anyone except a Saturn salesman


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