GM and Chrysler are both bankrupt and seeking federal aid to stay in business.  Both companies have not set aside any money in their bankruptcy plans for fatalities or injuries that occur due to automobile defects.   The two automakers have asked the bankruptcy courts to release the “new” companies from liability for any “old” defects.   There already are 14,566 claims unpaid but consumers with current claims will not be the only ones affect by this.  The two companies will not be responsible for any future claims either.

According to the Safety Research and Strategies in Massachusetts, GM holds 38% of all death and injury claims for all of the automakers. Which could only lead consumers to believe that there are going to be more claims.

ScrippNews reported that,  Rosemary Shahan, president of Consumers for Auto Reliability and Safety in Sacramento, California had this to say to about the issue.  This “not only would trample on consumers’ rights, it also would leave a lot of accident victims with no legal recourse to recover damages”

It has been pointed out by New York legislators that in the event this finalizes, victims may need to use medicare and medicaid to cover claims arising from the two automakers.

These accidents often leave victims with very expensive medical bills. Bills that the average American cannot afford right now! It is hard to believe that these companies would not be liable for products they have produced.