Our favorite writer over at Just Auto, Simon Warburton, has posted a very interesting story today about Youngman looking at the possibility of filing their own suit against GM. What a crazy 24hrs this has been. Just yesterday Victor Muller through Spyker brought a 3 billion dollar lawsuit against GM for unlawful actions and now today there is this possible lawsuit to come forward from Youngman. It’s starting to look like a deck of cards falling in on General Motors and one that I think is rightfully deserved.
From the Just Auto article, Lars Holmqvist the former head of CLEPA says:
“Youngman is also thinking about suing GM,” Holmqvist told just-auto from Sweden. “I know that. They have not made up their minds and, of course, they would be encouraged by Victor Muller’s lawsuit.
“I have information. I know from people…they are looking into the possibility. It is obvious because they spent SEK550m…securing the rights to the new platform.”
Victor Muller claims that GM deliberately drove Saab into bankruptcy by interfering in Youngman’s attempt to buy Saab and from what we can see right now, there are some areas that seem to be obvious where GM over stepped their rights. With Youngman now looking into to their own possible lawsuit, it would seem that GM has some serious issues surrounding them.
Will GM take these suits seriously? I think they have little choice but to take them serious and if they are smart, in my mind they will want to settle quickly. GM is not in a good position to deal with any negative publicity and this has the potential to be crippling to the auto giant. Lars had this to say about weather GM takes it serious or not:
“I hope Detroit takes it seriously because the one thing about Victor Muller is he is a smart lawyer,” added Holmqvist. “This is going to cost a lot of money. He has got more energy than the whole management group of GM put together.”
Weather you have faith or trust in Victor and his abilities, that line says a lot about the determination and character of Victor Muller when the former head of the suppliers body describes you this way.
The article also goes on to say that if Spyker is to be awarded any of this suit that part of it would go back to Saab and then on to the creditors. So that being said, this case means a lot to a lot of different parties and could in the end be the start of some serious headaches for GM.
GM of coarse is defending themselves saying that these suits are baseless and without merit, to which I would have to believe is just lawyer talk and fluff. I am sure this has them worried and they will have to take this seriously and they will probably try to settle because as the late Curvin O’Rielly once said, “It’s hard to build a reputation in the car business. And so easy to kill it.” This suit and others that may follow could potentially cast a darker shadow on GM then what there is now and it is very difficult to recover from such damage to their reputation. I think too and these are my personal thoughts, when different companies start to come forward and get somewhere with their litigations, it will undoubtably bring more.
As Lars Holmqvist further makes mention in the article of further potential balls rolling GM’s way:
“There are very strange things that happen,” said Holmqvist. “I see some papers and emails that are very interesting regarding the action of GM. It is not going away.
“I suspect we have another scandal coming up. If this ball starts rolling, there will be more balls rolling.”
This is not looking good for GM, not good at all. Youngman was not available for comment and would suspect they will not comment until they do or do not take action.