Senate Commerce Committee Press GM and Chrysler

A bipartisan coalition of the 20 U.S. Senators comprising the Committee on Commerce, Science and Transportation has written to Chrysler and General Motors urging the ailing automakers to back off of some of the more Darwinian features of their bankruptcies. Separate, but essentially identical, letters to James Press of Chrysler LLC and GM CEO Fritz Henderson raised questions about the fates of terminated dealerships and the technicians trained specifically to service their products. The letters also defended consumers, demanding answers to the companies' provisions for providing access to rural customers and to their planned walk-away from the victims of defects.

Brass Ones

Government Motors - I mean - General Motors is doubling down on 363. That's the magical section of the Chapter 11 bankruptcy code that allows filers to keep the good stuff and discard all the ick - one of the key pieces being liability for harm caused by defective products.

Kicked Off the Rope Line?

The American Association for Justice and consumer advocates are planning a full court press at today's hearing before the full House Judiciary Committee on the Chrysler bankruptcy proposal. The groups are fighting to change one of the more egregious provisions. Under the terms that the federal government is advocating, the new and improved post-bankruptcy Chrysler would leave all those pesky plaintiffs and vehicle owners seeking compensation for the manufacturers' defective products in the rear-view mirror. The company would honor warranties and be responsible for recalls, but anyone injured before the bankruptcy would be yanked out of the line of debtors.

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