• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

The General Motors you want to sue no longer exists, says GM

By
Doron Levin
Down Arrow Button Icon
By
Doron Levin
Down Arrow Button Icon
April 16, 2014, 7:11 PM ET
General Motors headquarters in Detroit

FORTUNE — General Motors Co. asked a federal court in Texas to postpone a lawsuit against it claiming damages and injuries from ignition-switch defects in models of GM cars built before the automaker’s 2009 bankruptcy.

It’s an early salvo in a critical legal battle that will determine if plaintiffs across the country will be permitted to sue for damages against the “old GM.”

GM (GM) has claimed immunity from legal liability for actions the automaker took prior to bankruptcy, which presumably could shield it from dozens of legal actions of those claiming they or family members were hurt due to the switch defects. GM recalled 2.6 million Chevrolet Cobalt, Saturn Ion, and other small cars; the automaker has acknowledged that the defect is linked to 31 accidents and 13 fatalities.

MORE: GM ignition recall earnings hit: $1.3 billion in first quarter

GM has acknowledged that it first detected a possible defect in the switch as early as 2001. Plaintiffs’ attorneys thus are likely to argue to the federal bankruptcy judiciary that GM shouldn’t be afforded immunity from litigation, since it knew of the defect prior to 2009 and should have disclosed the matter as part of the bankruptcy filing.

“As a result of GM’s conduct, especially in light of the taxpayer bailout of that company, [GM] has lost the right to impose their view as to what’s best for my clients and the other class members,” Adam Levitt of Grant & Eisenhofer, a lawyer for plaintiffs in a California case, told Reuters news service.

How GM fares in the litigation could bear directly on the mushrooming legal and political whirlwind that has consumed the automaker and its new chief executive officer, Mary Barra. Numerous federal lawmakers have criticized GM and leveled broadsides at its performance before and since the bankruptcy, particularly the delay in recalling vehicles affected by the ignition-switch defect.

Barra has sought to be proactive by appointing outside lawyers to conduct a broad investigation into the matter. She also hired Ken Feinberg, who supervised the payment of reparations to victims and their families in the 9/11 attack, to advise GM regarding compensation to those seeking damages.

MORE: New GM: Same as it ever was?

This week two top GM executives, supervising communications and human resources, resigned. The HR post was filled by a longtime GM executive; the communications job remains unfilled. Barra earlier created two new GM organizations, one devoted to safety and the second to “global product integrity.”

The GM chief executive officer, who has worked at the company for 33 years, is at pains to convince customers, dealers, jurists, and legislators that the corporate culture prior to bankruptcy has been rehabilitated.

“In the last five years,” Barra this week told a conference sponsored by J.D. Power & Associates, “we have made important and meaningful progress at GM in changing the company’s culture. Our focus is no longer on survival. We are more focused on quality and doing what is right for the customer than at any time in my 33 years with the company.”

As Barra also said: “It’s easy to come up with a list of values. What’s difficult is showing they are more than words on paper.’’ Keeping her job will likely hinge on that task.

About the Author
By Doron Levin
See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map

© 2025 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.


Most Popular

placeholder alt text
Success
Billionaire philanthropy's growing divide: Mark Zuckerberg stops funding immigration reform as MacKenzie Scott doubles down on DEI
By Ashley LutzDecember 22, 2025
1 day ago
placeholder alt text
Success
Former U.S. Secret Service agent says bringing your authentic self to work stifles teamwork: 'You don’t get high performers, you get sloppiness'
By Sydney LakeDecember 22, 2025
1 day ago
placeholder alt text
Travel & Leisure
After pouring $450 million into Florida real estate, Larry Ellison plans to lure the ultrarich to an exclusive town just minutes from Mar-a-Lago
By Marco Quiroz-GutierrezDecember 22, 2025
1 day ago
placeholder alt text
Success
'When we got out of college, we had a job waiting for us': 80-year-old boomer says her generation left behind a different economy for her grandkids
By Mike Schneider and The Associated PressDecember 23, 2025
12 hours ago
placeholder alt text
Economy
Mitt Romney says the U.S. is on a cliff—and taxing the rich is now necessary 'given the magnitude of our national debt'
By Dave SmithDecember 22, 2025
1 day ago
placeholder alt text
Success
The average worker would need to save for 52 years to claw their way out of the middle class and be classified as wealthy, new research reveals
By Orianna Rosa RoyleDecember 23, 2025
9 hours ago

Latest in

Jensen Huang
Successwork-life balance
Hoping AI will give you more work-life balance in 2026? Fortune 500 CEOs warn otherwise
By Preston ForeDecember 23, 2025
3 hours ago
LawPonzi scheme
He promised investors 10% gains. Now, he’s accused of using their money for sailing excursions in an alleged Ponzi scheme
By The Associated PressDecember 23, 2025
4 hours ago
LawColleges and Universities
The University of Oklahoma fired an instructor after she failed a psychology student who cited the Bible in an essay on gender
By John Hanna and The Associated PressDecember 23, 2025
4 hours ago
Best protein lead image
HealthDietary Supplements
The 9 Best Protein Powders of 2025: How to Choose, According to an RD
By Christina SnyderDecember 23, 2025
4 hours ago
Personal FinanceCertificates of Deposit (CDs)
Best certificates of deposit (CDs) for December 2025
By Glen Luke FlanaganDecember 23, 2025
4 hours ago
PoliticsDonald Trump
Trump complains Epstein files are a distraction as flight logs reveal deeper ties and ‘unfounded and false’ claims emerge
By Lindsay Whitehurst, Seung Min Kim and The Associated PressDecember 23, 2025
4 hours ago