Bad Idea: GM Offers $1000 Rebate to Toyota Owners (Updated 3:16 PM 1/29)

Posted on January 28, 2010


Toyota is recalling many of its models to correct a dangerous malfunction in the accelerators of these cars. They insist on factory correction of the problem.

Charging into the midst of all of this is that government-run auto company, GM, offering $1,000 rebates to all Toyota owners who purchase GM brand autos.  Question: how will GM ferret out the properly repaired Toyotas from the those who have not been properly repaired?  Isn’t the company putting itself at risk trying to guarantee and resell the Toyotas?

While this kind of baiting is routine in the industry, in  light of the circumstances of the Toyota recall, GM clearly needs to clarify the terms of the offer for the safety of all parties – including the primary stockholders, We The People.  We need to know the process by which all Toyotas taken in trade will be certified before resale.

It’s difficult to trust competent running of a company that has had 3 CEOs within the space of a year.

UPDATE: According to CNN,

NEW YORK (CNNMoney.com) — As Toyota’s gas pedal recall expands into Europe, the carmaker says it has a fix for cars there and that one will be coming soon to drivers in the United States.

A Toyota spokesman has said that the carmaker is very close to announcing a solution to the issue for cars here in the U.S.  Toyota still needs to get regulatory approval for a proposed repair in the U.S. and in Europe before a fix can be made.

…The gas pedal recall is separate from an earlier one, begun in November to fix a problem in which the gas pedal can become caught on the edge of the removable floormat.

On CNN TV, it was just announced that Congress will be investigating the matter.

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