GM’s sneak attack on California’s auto lemon law

OPINION – It wasn’t long ago that General Motors (GM) led a coalition of automotive companies to support the Trump administration’s assault on California’s right to set its own emission standards. Now, GM is at it again, this time targeting California’s auto lemon law, widely regarded as the best in the nation. GM’s attack on this crucial consumer protection is being executed through an underhanded “gut-and-amend” process at the end of the legislative session, which undermines democratic principles.

GM’s bill, AB 1755, was drafted in secret, without any input from nonprofit consumer and auto safety organizations, other auto manufacturers, car dealers, or even the bill’s authors. The only exception was the Consumer Attorneys of California, a group largely indifferent to the lemon law. On August 20, the contents of a bill on child custody that had already passed the Assembly were suddenly stripped out, and GM’s anti-consumer language was inserted.

GM’s attempt to push this legislation through quickly, without public scrutiny, is a threat to every Californian who relies on their vehicle for their livelihood and safety. Since its inception in 1970, the Song-Beverly Consumer Warranty Act has protected California consumers who buy products covered by a manufacturer’s warranty. Californians deserve better than to have this vital law—protecting what is often the largest financial investment for most residents—gutted by a corporation with a history of concealing lethal safety defects and prioritizing profits over people.

Legislation created in secrecy should alarm every Californian, especially when it threatens the safety and financial well-being of millions of vehicle owners, their families, and small businesses. On behalf of Consumers for Auto Reliability and Safety (CARS) and the millions of Californians who rely on strong consumer protections, we strongly oppose AB 1755, as amended on August 20. This bill is a blatant attempt to dismantle California’s landmark auto lemon law—a model for consumer protection across the country.

For the past 54 years, the Song-Beverly Consumer Warranty Act has provided crucial protections for millions of vehicle owners who have purchased defective vehicles. It covers over two million new car, truck, and SUV buyers each year, millions of used car buyers, active-duty U.S. military service members and their families, and millions of small businesses that rely on a few vehicles. California’s Auto Lemon Law also creates jobs for thousands of automotive technicians and workers involved in warranty and safety recall repairs.

Some auto manufacturers, like GM and Ford, produce millions of defective vehicles each year. In 2022, Ford led the industry with 56 safety recalls affecting 5.7 million vehicles. GM’s record is also poor. According to the 2022 California Auto Lemon Law Index, from 2018-2021, Californians who purchased GM vehicles were 26 times more likely to file a lemon lawsuit than those who bought Toyotas. Instead of focusing on building reliable vehicles, GM is exploiting legal loopholes and weakening consumer protections, all while pushing out increasingly complex models that even their own technicians struggle to repair. By cutting corners and neglecting warranties, GM leaves consumers to bear the brunt of their negligence.

AB 1755 would weaken California’s auto lemon law by making unprecedented changes to the Song-Beverly Act. Instead of strengthening consumer protections, it strips them away. One of the most troubling provisions would require lemon vehicle owners to notify manufacturers in writing, with specific vehicle details, before they could pursue penalties for warranty violations. This shifts the burden entirely onto the consumer, many of whom may not even be aware of these new requirements.

This provision is a boon to unscrupulous manufacturers like GM, allowing them to ignore consumer complaints without consequence. It directly attacks the most vulnerable Californians—those who are less knowledgeable, more trusting, economically disadvantaged, or not proficient in English. AB 1755 would allow manufacturers to sidestep accountability, leaving consumers with defective vehicles and hefty repair bills.

Moreover, AB 1755 would shorten the statute of limitations for filing a lemon lawsuit and allow manufacturers to deduct negative equity from refunds, potentially trapping consumers in defective vehicles with no way out.

We strongly urge lawmakers to withdraw AB 1755 and demand transparency, allowing all stakeholders to participate in the legislative process. Californians deserve strong consumer protections, not laws crafted in secret by those who stand to profit at their expense.

Rosemary Shahan, is the President of Consumers for Auto Reliability and Safety (CARS)