GM accepts product liability to speed bankruptcy

General Motors has changed a key provision in its bankruptcy plans, accepting greater liability for future vehicles, in order to clear away objections to the plan and speed up the court’s approval. Automotive News reports:

General Motors has agreed to accept liability for future product defects as one of several concessions offered in a bid to win court approval for a quick sale from bankruptcy…

A group of nine state attorneys general, including Ohio and Connecticut, had objected to the GM reorganization brokered by the Obama administration because it would have robbed consumers of protections against product defects under state laws.

In response, GM said it would continue to pay “lemon law” claims so that consumers would be entitled to a refund or replacement for defective vehicles.

GM also said that the reorganized company, which will be effectively nationalized with a $50 billion investment from the U.S. Treasury, would assume liability for future product defect claims in a change negotiated with government officials.

It’s not clear whether this includes accepting full liability for any suits already filed for defective products that may have led to death or serious injury.