GM Says FTC Is Investigating Its Used Vehicle Sales

By John D. Stoll 

The Federal Trade Commission is investigating General Motors Co. in connection with dealers advertising used vehicles for sale even while those cars and trucks allegedly needed recall repairs.

The auto maker disclosed the investigation Thursday in its quarterly filing with the Securities and Exchange Commission, saying it was notified June 3 by the FTC.

As a matter of normal business, auto dealers that sell new cars for a particular auto maker will also sell so-called certified pre-owned vehicles made by that same company. The certification is meant to give an extra level of security to buyers concerning the condition and performance of the vehicle.

GM's policy concerning certified pre-owned vehicles states that a vehicle can't be classified as such "unless the dealer first performs any needed recall repairs. GM has instructed its dealers to check for recalls and perform any needed repairs before listing any vehicle as a Certified Pre-Owned vehicle."

The auto maker, however, has warned that "because of timing issues, or because of dealer error, it is still possible that a vehicle listed on this website needs a recall repair." It has a website where prospective buyers can find out further information--www.recalls.gm.com.

"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. "Such investigations could in the future result in the imposition of material damages, fines, civil consent orders, civil and criminal penalties or other remedies."

Write to John D. Stoll at [e-mail]

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