The Federal Trade Commission is investigating whether some General Motors dealers sold used cars that had been recalled without first repairing the vehicles.
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“We continue to investigate these matters and believe we are cooperating fully with all requests for information in ongoing investigations”, the auto maker said in its SEC filing. A spokesman wouldn’t give further details. FREE registration is now required for uninterrupted access. Welcome now the newest player to set its sights on GM: the Federal Trade Commission. The biggest conundrum involves the February announcement that 2.6 million vehicles were recalled for defective ignition switches – today linked to 124 deaths and hundreds of injuries.
When contacted by Auto Remarketing, Frank Dorman from the FTC’s Office of Public Affairs said, “Since an FTC investigation has been disclosed by General Motors, we can acknowledge the existence of the investigation, but have no further comment”. The FTC wants to know if GM dealers have been selling these allegedly safe vehicles when recall repairs hadn’t been made on the cars.
“We do a lot to tell them not to move vehicles that have open recalls”, he said.
Federal law prohibits the sale of new cars that have unfixed recall repairs, but there is no law preventing used cars from being sold.
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Dealers are independent businesses with franchises that are granted by the company. Certified vehicles usually sell for higher prices than regular used cars.
