Bailouts

Shikha Dalmia on GM's Get-Out-of-Jail Card on the Cobalt Crashes

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GM
GM

The GM bailout is the gift that keeps on giving to the auto giant. It has already cost Americans more than $10 billion. Even worse, it might have cost them their legal rights too.

That's because GM obtained a liability shield that takes it off the hook for any pre-structuring incidents involving its defective cars. This means that victims of the 1.6 million Cobalt and other vehicles that GM was forced to recently recall because of a faulty ignition switch might have a very hard time obtaining just compensation, explains Reason Foundation Senior Analyst Shikha Dalmia.