Since General Motors announced the massive ignition switch defect recall of millions of its vehicles on February 7, a tremendous amount of information has been made public.  The recall began with a couple makes and model years and has swelled into a recall of seven different makes and models of vehicles spanning eight model years.  All told, GM manufactured and sold 2.6 million vehicles containing a deadly defect between 2003 and 2011.  The scope of the problem could continue to grow, as we are barely two months into the recall.

GM’s CEO Mary Barra testified before Congress a little over two weeks ago.  She stated during her testimony that she did not know of the defects until shortly before the recall.  However, less than a week ago, documents were made public showing that Barra knew of a deadly power steering defect in 2011.  GM’s response to this revelation is that that’s a separate defect.  That news is hardly comforting to owners of any GM products, particularly those subject to any one of the several recalls GM currently has going.

More disturbing, a recent report establishes that GM actually decided to use a defective ignition switch part in 2001 – before any of the defective vehicles were manufactured – instead of a part GM saw as safer, because the defective part was a couple cents cheaper than the better part.  In other words, GM chose to manufacture millions of vehicles containing deadly defects simply because they could save a few million dollars in the aggregate.

It is now beyond dispute that GM switched the design of a known defective part in its ignition switch system in 2006.  GM made the change without changing the part number associated with the part – a serious violation of established protocols in the automotive industry.  The only explanation is that GM wanted to switch out the defective parts without anyone noticing.  In other words, GM intentionally tried to cover up the defect.

Perhaps worst of all is GM’s handling of the recall and the understandable flood of litigation that has ensued.  GM promised to quickly remedy the defective vehicles back when it first announced the problems.  But, over two months have gone by, and there is still no coherent plan for what to do to fix the vehicles.  Owners of the vehicles are left with the unenviable choice of losing out on what is often their only mode of transportation or risking their lives and the lives of their loved ones to get from point A to point B.

Further, while GM has promised to provide loaner vehicles to owners of defective cars while the repairs are made, it has made hardly more than 10,000 such vehicles available.  In fact, there are only 1.9 million rental cars available in the entire United States.  So even if every rental car in the country was given to owners of defective GM vehicles, the entire country would still be 700,000 rental cars short.  Obviously, GM’s promise of providing loaner vehicles is just simply another meaningless GM promise.

This week, GM has set in motion the ultimate slap in the face to the victims of its 13-year fraud.  GM has quietly begun to set the stage for a battle in bankruptcy court to weasel its way out of this entire fiasco.  GM is going to argue that its 2009 bailout-fueled bankruptcy absolved it of all liability to make the victims of its unforgiveable conduct whole.  This is an argument that will not succeed in court.  Further, it will destroy the public’s opinion of GM.  GM is making a huge mistake by playing the bankruptcy card.

— Kassem Dakhlallah is a senior partner with At Law Group, PLLC.  His practice focuses on complex litigation, including class actions, representative actions, commercial litigation, civil forfeiture and personal injury. He can be reached at (313) 406-7606 and kd@atlawgroup.com.