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GM Accused of Breaking Labeling Laws

Remember how in 2009, the US government spent billions to save the dying General Motors from becoming a “has been”? Remember the promises GM made to receive that money? Well, if you don't, Made in the USA Foundation and the people representing it do.

The foundation, an organization which plans to be the largest resource of American made products, is accusing GM of violating the American Automobile Labeling Act (AALA). The whole story, summed up in a few words, is as follows.

According to Made in the USA, the American manufacturer's cries for help came in 2009 under the promise of saving an American industry to benefit the American people. In other words, GM took US dollars in return for the promise to keep jobs and continue production in the US.

After it received the money, says the foundation, the car maker began cheating. It started moving production outside the US and, as an attempt to cover their tracks, started stripping country of origin labels off of its cars which are presented at auto shows around the US.

"General Motors wants to hide the fact that, even after the government bailout, it has moved production of vehicles offshore. The Cadillac SRX is now made in Mexico. The Buick Regal is made in Germany,
" said Joel D. Joseph, Made in the USA Foundation chairman.

So, what does the foundation ask the US authorities to do? Well, ask GM to comply with the law, for now.
The car maker so far denied the accusation, saying that country of origin labels are only required for cars for sale at dealers, not for those presented at auto shows. Joseph, after talking with Senator Barbara Mikulski, who wrote the law, disagrees:

“Millions of consumers get their first look at cars at auto shows. The law applies to cars that are 'for sale' and auto show cars, except concept cars. Identical GM cars are for sale at thousands of dealers across the nation, and display vehicles should include country of origin information,” he said.

“The U.S. government saved GM and still owns one-third of the company. General Motors should comply with the intent of the law."
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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