http://blogs.law.harvard.edu/philg/2008/11/12/should-the-federal-government-guarantee-gm-car-warranties/ A posting every day; an interesting idea every three months... Thu, 03 Dec 2009 00:50:09 -0500 http://wordpress.org/?v=2.8.4 hourly 1 http://blogs.law.harvard.edu/philg/2008/11/12/should-the-federal-government-guarantee-gm-car-warranties/comment-page-1/#comment-91189 Chad Wed, 12 Nov 2008 13:48:15 +0000 http://blogs.law.harvard.edu/philg/?p=1120#comment-91189 Thanks for the additional information. While I am squarely in the "GM belongs in bankruptcy camp", I do appreciate all efforts to protect the tax payer and future generations from the current fiscal insanity. Thanks for the additional information. While I am squarely in the “GM belongs in bankruptcy camp”, I do appreciate all efforts to protect the tax payer and future generations from the current fiscal insanity.

]]> http://blogs.law.harvard.edu/philg/2008/11/12/should-the-federal-government-guarantee-gm-car-warranties/comment-page-1/#comment-91187 philg Wed, 12 Nov 2008 13:24:06 +0000 http://blogs.law.harvard.edu/philg/?p=1120#comment-91187 Chad: The government doesn't pay the warranty expenses unless GM is liquidated. Until then GM accrues warranty obligations on its balance sheet and pays warranty claims from dealers on a current basis. If the company were to continue operating or any of its divisions were to continue operating under new ownership, the government would not incur any costs. Chad: The government doesn’t pay the warranty expenses unless GM is liquidated. Until then GM accrues warranty obligations on its balance sheet and pays warranty claims from dealers on a current basis. If the company were to continue operating or any of its divisions were to continue operating under new ownership, the government would not incur any costs.

]]> http://blogs.law.harvard.edu/philg/2008/11/12/should-the-federal-government-guarantee-gm-car-warranties/comment-page-1/#comment-91185 Chad Wed, 12 Nov 2008 13:07:30 +0000 http://blogs.law.harvard.edu/philg/?p=1120#comment-91185 You may be correct in assessing the potential risk over a period of nine months, however beyond that, I can imagine a room full of GM execs asking the question "Where can we cut costs in quality assurance and vendor/part selection now that the government is picking up the warranty expense?" You may be correct in assessing the potential risk over a period of nine months, however beyond that, I can imagine a room full of GM execs asking the question “Where can we cut costs in quality assurance and vendor/part selection now that the government is picking up the warranty expense?”

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