Attorney General Gansler Obtains Protections for Maryland Citizens in GM Bankruptcy

BALTIMORE, MD ( July 6, 2009) - Attorney General Douglas F. Gansler announced today that negotiations with General Motors (GM) to resolve objections by Maryland and 43 other states to the sale of the company have resulted in additional protections for consumers and auto dealers. The initial positions of GM and the Treasury Auto Task Force would have left thousands of GM customers and dealers without the protections afforded to them under state law.

“Even though the states did not obtain everything they sought in their objection, the overall result of the exhaustive negotiations is positive,” said Attorney General Gansler. “We are pleased that GM and the Treasury Automotive Task Force were willing to work with the states to address our concerns about protecting consumers, dealers and the environment.”

Among concessions sought and received by Maryland and the 43 other states, GM has agreed to:

• Accept responsibility for compliance with environmental laws on facilities that will be part of the new company and will expand funds available to cleanup sites that will stay with the old GM;
• Honor express warranties and comply with state lemon laws;
• Accept responsibility for payment of state tax obligations;
• Acknowledge that all dealers staying with the new GM will be protected by state franchise and dealer laws;
• Comply with state privacy laws, including abiding by state Do Not Call laws;
• Honor products liability claims for accidents occurring after the closing date that involve cars sold before bankruptcy.

The Attorney General thanked Nebraska Attorney General Jon Bruning, President of the National Association of Attorneys General (NAAG) who took the lead in filing the objections on behalf of the 44 states, and Karen Cordry, NAAG’s Bankruptcy Counsel, who represented the objecting states in the bankruptcy court proceedings and the negotiations, for their efforts.