+ Reply to Thread
Results 1 to 15 of 15
Like Tree16Likes
  • 1 Post By Loose Caboose
  • 2 Post By ucfbrett
  • 1 Post By Loose Caboose
  • 2 Post By Loose Caboose
  • 8 Post By Olitho
  • 1 Post By fatbillybob
  • 1 Post By fatbillybob

Thread: Class Action: Z06 Owners v. General Motors

  1. #1
    Senior Member
    Join Date
    Sep 2011
    Location
    Rolling Hills Estates
    Posts
    3,003
    Liked
    887 times

    Default Class Action: Z06 Owners v. General Motors

    Overheated owners not happy.

    deadspin-quote-carrot-aligned-w-bgr-2 *


    * This link should work despite the strange wording
    Last edited by Loose Caboose; 06-13-2017 at 04:36 PM.
    bellwilliam likes this.

  2. #2
    Senior Member
    Join Date
    Mar 2017
    Posts
    140
    Liked
    20 times

    Default

    2017 z06 seems to be fine.
    well, even my little frs is overheating(running hot) because stock Frs doesn't come with an oil cooler.
    VA(15) STI/FRS

  3. #3
    Administrator ucfbrett's Avatar
    Join Date
    Jan 2009
    Location
    Ventura, Calif.
    Posts
    5,639
    Liked
    2356 times

    Default

    I can see why there might be a class-action suit on this, and I don't blame owners for bringing it. However, I loathe class-action suits because the only people who win are the attorneys. The cars won't get fixed and any monetary compensation owners might get will be paltry.

    Supercharged track cars hardly ever work well for sustained periods. A Z06 buyer should know that.

  4. #4
    Senior Member robburgoon's Avatar
    Join Date
    Jan 2008
    Posts
    7,008
    Liked
    1495 times

    Default

    Quote Originally Posted by ucfbrett View Post
    I can see why there might be a class-action suit on this, and I don't blame owners for bringing it. However, I loathe class-action suits because the only people who win are the attorneys. The cars won't get fixed and any monetary compensation owners might get will be paltry.

    Supercharged track cars hardly ever work well for sustained periods. A Z06 buyer should know that.
    Tadge should know that too. If they couldn't deliver a Z06, they should have given it a different model name, or at least marketed it differently.

    But yeah, class action sucks and it might discourage automakers from making anything close to surviving at the track.

  5. #5
    Senior Member fatbillybob's Avatar
    Join Date
    Sep 2008
    Location
    by the beach
    Posts
    2,087
    Liked
    1720 times

    Default

    Nothing will happen to GM. Remember we bailed them out and they stiffed all the prior stock holders yet were reincarnated back into GM with no loss to GM. ZO6 owners are just wasting their time.

  6. #6
    Senior Member robburgoon's Avatar
    Join Date
    Jan 2008
    Posts
    7,008
    Liked
    1495 times

    Default

    Quote Originally Posted by fatbillybob View Post
    Nothing will happen to GM. Remember we bailed them out and they stiffed all the prior stock holders yet were reincarnated back into GM with no loss to GM. ZO6 owners are just wasting their time.
    Well, the business failed. Why should the investors be rewarded for backing the wrong horse?

  7. #7
    Senior Member
    Join Date
    Sep 2011
    Location
    Rolling Hills Estates
    Posts
    3,003
    Liked
    887 times

    Default

    + +

    Indeed, if GM were left fail, the investors would have come up empty anyway, which is why stocks return more than debt: shareholders assume more risk.

    As it turned out, unsecured bondholders received 10% in the new entity, the government got paid back, consumer product choice was preserved, and thousands of employees (direct and supply chain) continued paying mortgages and feeding their families. GM's continued operations were important enough to the domestic industry that Ford and Chrysler supported the bail out.

    Although management was not "punished", they were, after all, not responsible for the poorly regulated, hyper leveraged market in mortgage default insurance.

    Not a perfect outcome, but better perhaps than everybody sucking wind and dropping dead.
    Last edited by Loose Caboose; 06-14-2017 at 03:51 PM.
    ucfbrett likes this.

  8. #8
    RaceTape Ninja Force McCocken's Avatar
    Join Date
    Feb 2012
    Location
    Roswell, GA
    Posts
    1,540
    Liked
    807 times

    Default

    Is it better that they were bailed out? I have my doubts. Sure, it would have sucked, but why continue to prop up a company that has made poor decisions for so long?
    Yer pal,
    Force

  9. #9
    Senior Member
    Join Date
    Sep 2011
    Location
    Rolling Hills Estates
    Posts
    3,003
    Liked
    887 times

    Default

    I sincerely admire your emotional rectitude; but, as mentioned, the most important beneficiaries were the workers, the industry, consumers, and the general economy - at no cost to John Q. Public.

    And yes, GM management did make many bad decisions; and, like with many corporations, their "buddy Board" did do a poor job of governing management; but they were not responsible for the wall street melt down that precipitated their near fatal reckoning.

    To me, the issue of "unjust desserts" should focus more on the lack of criminal proceedings against the investment bankers that privatized their gain and socialized their risk (with the implicit "too big to fail" guarantees that they knew would be invoked to prevent the financial market melt down from leading to near total collapse in the real economy).

    Tsk, tsk . . . shame, shame . . .
    Last edited by Loose Caboose; 06-14-2017 at 08:37 PM.
    Force McCocken and thepass like this.

  10. #10
    Senior Member
    Join Date
    Sep 2011
    Location
    Rolling Hills Estates
    Posts
    3,003
    Liked
    887 times

    Default

    Regardless, I apologize if I have drifted too far from the track instead of drifting on it.

    Last edited by Loose Caboose; 06-14-2017 at 04:25 PM.

  11. #11
    Chest hair required Olitho's Avatar
    Join Date
    Mar 2007
    Posts
    5,235
    Liked
    2343 times

    Default

    How does a Class Action suit work for Corvette owners?

    To me it seems like a total oxymoron.

    Corvette owners don't have any class....
    leisure-suit-larry.png
    bellwilliam, craZee, tq3z and 5 others like this.
    To the right of The Sheriff. Isn't everyone?

  12. #12
    Senior Member fatbillybob's Avatar
    Join Date
    Sep 2008
    Location
    by the beach
    Posts
    2,087
    Liked
    1720 times

    Default

    When a company goes BK its assets should be liquidated to pay debt and distribute equity. They should not be able to keep everything, liquidate nothing, get bridge funding from me the taxpayer, and screw everyone including the equity stockholder. But they did and they can. So you think rich old Z06 buying 1%ers are going to get their way? I doubt it...
    Force McCocken likes this.

  13. #13
    Master of Disaster SteveLevin's Avatar
    Join Date
    Nov 2007
    Location
    Sunnyvale, CA
    Posts
    2,216
    Liked
    609 times

    Default

    Actually, in the GM bankruptcy senior secured bondholders received very limited equity in the New GM, whilst the UAW (an unsecured creditor) because a major shareholder in the New GM.

    Steve

  14. #14
    Senior Member fatbillybob's Avatar
    Join Date
    Sep 2008
    Location
    by the beach
    Posts
    2,087
    Liked
    1720 times

    Default

    General Motors' stock continued to crash into early 2009 as the domestic car market shriveled. Then on June 8, 2009, the company entered bankruptcy and the proceeding stripped GM into bits and pieces. Investors in the former GM were left with shares of what's known now as Motors Liquidation (MTLQQ). These shares trade for 9 cents a share, or are essentially worthless.

    *********Meanwhile, former GM shareholders have to suffer through the splashy IPO of the new General Motors under the same symbol,GM.**********


    So GM has gone on to produce the new faulty Z06 and won't pay the price for this either.
    Force McCocken likes this.

  15. #15
    Member
    Join Date
    Jun 2014
    Posts
    95
    Liked
    53 times

    Default

    The overheating issue is pretty real. In 2017, GM came out with a new cooling package that seems to greatly help if not completely fix the overheating issues on track.

    The 2015 and 2016 cars, on a warm day might not even make it a lap before spitting codes and going into limp mode. You can do all sorts of works around and after market options but then risk losing your warranty.

    The car was marketed heavily as a track star. Everything about it was "track this, track that!" unless you actually take it to a track....

    GM should have came out and retrofit the previous years cars with the new cooling as goodwill for the small percentage that track their cars. Instead they waited to get sued. Whether you agree with the fundamentals of a class action suit or not, there is merit here for this course of action.

    The real lesson here is buying a new gen Z06 in the first couple of years of release.

+ Reply to Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts