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The big three warranties

Discussion in 'Off Topic Threads' started by kolared person, Mar 5, 2009.

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  1. kolared person

    kolared person TS Member

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    What will happen to existing warranties if the big 3 go undeR ?
     
  2. threedeuces

    threedeuces TS Member

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    This exact question is what led me to the purchase of a Toyota Tundra.
     
  3. blizzard

    blizzard Active Member

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    I hope the frame rots out from under it. You Toyota driving D A.
     
  4. ric3677

    ric3677 Well-Known Member

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    Will your toyota tow my 5th wheel? It's only a 33 FTer

    Rick in Mt.
     
  5. pendennis

    pendennis Well-Known Member

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    If GM goes into Chapter 11 (reorganization), outstanding liabilities become part of the settlement equation. The bankruptcy referee could make a determination as to how much warranty liability would remain when GM comes out of reorganization.

    It's a real tough question until the process starts. Some smaller companies have completely shed warranty liabilities as part of Chapter 11. I don't think GM would be able to completely walk away from those potential costs, but that's the $64 question. Bankruptcy is like a sausage factory, nothing comes out like it goes in.

    Best,
    Dennis
     
  6. Jeff P

    Jeff P Well-Known Member

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    Well, if you're super concerned about it...you can always buy a third party insurance type warranty that will cover some things for you.

    but really, you have to quantify your potential losses. For example, my truck is a 1995. I have no warranty, therefore no dog in the fight.

    If you bought a truck last month or last year, and you have, say, two years to go on the warranty...you might have issues. But really, if the tranny goes out, it's going to be $2,500. Or if the motor goes out...what? $5k? $6k? I wouldn't even venture a guess. The third party warranty might cost $1,500. So if the engine falls out on the street, you saved $3,500 (net of the new engine cost and the warranty.)

    Big deal. Life is funny...you won't get out alive. So why spend your days worrying about the possibility that something MIGHT break on your truck, and then, IF GM has gone bankrupt and IF the court had voided your warranty, you'd have to pay for it. And the 3 year warranty is running out by the minute....

    Man, I don't want to make light of it...you're obviously concerned about it. But why worry about something you can't control??

    I've been driving chevy's since my first 1951 truck.
     
  7. Old Texas Marine

    Old Texas Marine Member

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    Too many people confuse the term "bankrupt" with going out of business. Chapter 11 is a reorganization and the bankruptcy judge can void all liabilities and contracts. The key is that the judge's motivation is to protect the viability of the corporation in order to lessen the damage to lien holders, etc. I would suspect that if a judge voided the warranties, GM (or whomever) would never sell another car so it would not be a prudent decision by the bankruptcy judge.

    The UAW may not fare so well in Chapter 11. Airline bankruptcies have voided pension plans for retired employees. Those that put there hopes in the unions should stand by for the ram if GM files. All the $ given to GM and Chrysler was not to protect the company. It was to protect the UAW. That $ (my $) was payback from the DEMS to the union. They were throwing good $ after bad.

    I've never owned a Asian built car or truck in my life. My Dad is in a wheelchair thanks to the rotten Japs so don't think I am one of those yuppies that thinkks jap crap is cool.

    Rant over.

    HBT
     
  8. Bruce Specht

    Bruce Specht Well-Known Member

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    Don't think Ford or GM will go away. GM will be hlaf of what it is today but it won't go away Chrysler I think it's just a matter of time and not much of that
     
  9. BILL GRILL

    BILL GRILL Well-Known Member

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    All bets are off on my end. Who knows who will survive.
     
  10. threedeuces

    threedeuces TS Member

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    Blizzard, There is one thing for sure. If the frame rots out (which I don't think it will) It will be covered by a warranty. With that said, Is the D.A. the one who would own a vehicle that they don't know for sure will have a warranty because the company went under. Who knows, maybe the reason for them going broke is the D.A. line is getting shorter.
     
  11. blizzard

    blizzard Active Member

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    The one I had wasn't coverd by a warranty when the frame rotted out and the box fell off!



    And according to last months sales figures, everyone's DA line is getting shorter!
     
  12. Husky44

    Husky44 Active Member

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    The rotten Toyota frames were made by Dana corp in America..

    I have owned nothing but Fords for 40 years, drive a 03 7.3 F250 currently, but would not buy another new big three until they're on firm footing again.
     
  13. JLW

    JLW TS Member

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    Husky44


    "The rotten Toyota frames were made by Dana corp in America.."

    I would add that they were made to "TOYOTA SPECIFICATIONS!"-Jerald
     
  14. threedeuces

    threedeuces TS Member

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    Go Tundra!
     
  15. SirMissalott

    SirMissalott Active Member

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    Bad management, corrupt anti American anti gun Democret Union people making $100 / hour, not willing to make any concessions while the rest of the country suffers. Bailout after bailout after bailout of Obama's vote buying socialist policy's ( and our money). Planned obsolescence etc... Make mine an American Made Honda. Thank you
     
  16. Brian in Oregon

    Brian in Oregon Well-Known Member

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    blizzard, quote: <i>"I hope the frame rots out from under it. You Toyota driving D A."</i><br>
    <br>
    Yet another jackass comment.
     
  17. Gold E

    Gold E TS Member

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    If GM were allowed to completely abandon their existing warrantees, no one would buy future GM vehicles, fearing that they too would be abandoned.

    Additionally, I agree with Brian in OR; it takes an exceptionally bitter person to wish ill on others and this site has become a harbor for bitter persons.
     
  18. warren

    warren Member

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    I own an Ford F250 diesel 2000 pickup which I purchased about five years ago and last thursday I got a letter from Ford Motor Co. saying that they had tracked me down thru a vehicle registration process and that the "camshaft position sensor" on my vehicle had never been replaced thru their sevvicing progrm, that this service was free and to take it to the nearest Ford Dealer to have this done. I am amazed that they would do this it is a marvalous vehicle and just keeps running. It does not sound like Ford is going out of business to me.

    warren
     
  19. blizzard

    blizzard Active Member

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    Gold E- that was tit for tat from another thread.
     
  20. pendennis

    pendennis Well-Known Member

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    Depending on who finances the bankruptcy, privately or governmentally, will go a long way in determining how warranties will be handled.

    As mentioned in my previous post, bankruptcy is like a sausage factory. If the government has their way, a post-bankruptcy GM will look far different than a pre-bankruptcy GM. You only have to look at the automotive advisory team that exists today. I don't think any of them have any experience in the complexity of the auto industry.

    The other problem that exists, is the availability of private financing. There are few sources of capital available in the amounts that are required for a bankruptcy of this size, should it occur.

    GM itself has stated that bankruptcy would harm long term prospects for customers. Who would buy a vehicle from a company which just "walked" away from current warrany liabilities? Rick Wagoner was correct in his earlier assessment.

    A GM bankruptcy will probably strain the bankruptcy laws to their maximum, both in interpretation, and execution. I just don't see any good coming from this, but there may be no other hope.

    Best,
    Dennis
     
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