WTF: GM claims "design defects" are NOT covered by express warranty... and they may win

 The TL;DR version: GM seems to have some problems with their eight-speed automatic transmissions... rough shifting, hesitating, shudder, etc. Complaints from multiple states have been combined into a single class action lawsuit in Michigan, and for paperwork reasons, some plaintiffs using their own state law have been dismissed. 

So what's the argument? GM basically argued that "express warranty only covers defects in material or workmanship. Since these problems are inherent in the design, they are NOT covered by our express warranty." Here's Steve Lehto explaining the longer version on his YT channel. 

At this time, you're probably going WTF?! Can they do that? Apparently, they could. It'd be very short-sighted decision, but there's a chance this argument would stand up in court. 

If you don't get the implications, let me give you an example. 

Let's say you buy this broom. It sweeps fine, until you accidentally bump into a wall or a piece of furniture, and the bristles started to bend and won't sweep nicely anymore. The bristles don't have any flexibility. They bend and break, and that's it. You want a refund or replacement but was told: they are all like that, and they are working exactly to our design, so there is no defect in workmanship or material. No refund, no exchange. 

Yes, you can argue that bristles *should* flex and bend but spring back to shape. But the broom maker said this is a DESIGN flaw (they specified the wrong type of plastic), and this is NOT covered by the warranty. 

But isn't the "wrong" type of plastic a material defect? Nope. It works as-is. 

I am not a lawyer so I am not going to go into the intricacies of "implied merchantability" or stuff like that. This goes into the Uniform Commercial Code (which are NOT uniform across all states) and just go watch Lehto's Law episode I linked above. 

But it brings up a very good point: this is an extremely short-sighted decision... These are not cheap transmissions. They are not the stuff that goes into economy cars, but the high-end cars like Denali, Corvette, Cadillac (various models), and so on. 

And if GM refuses to make things right, they will lose even MORE market share in the more profitable high-end market, as this sort of experience is what will drive a previously brand-loyal auto owner to switch to something else, often, an imported brand.