GM facing Federal lawsuit for labeling Chinese AC Delco parts “Made in USA”
Imagine you’re shopping for car parts. You stand there in the aisle, eyeing cheaper imports and pricier parts labeled “Made in USA.” Money’s tight. But you decide to pay more, thinking you’re supporting American jobs. But when you get home and open the AC Delco box, the part says “Made in China.” That’s what Norman Husar of Cincinnati says happened to him—and he’s suing General Motors.
According to his federal complaint (Husar v. General Motors LLC, Case No. 1:21-cv-00204), GM is “making false and deceptive ‘Made in USA’ claims on its ACDelco product packaging.” Nusar bought an ACDelco transmission filter because the box said “Made in USA.” But Nusar found the part itself stamped “Made in China.” Husar claims this violated Federal Trade Commission rules, which require a “Made in USA” label to mean “all significant parts and processing that go into the product are of U.S. origin.”
Where are AC Delco parts actually made?
AC Delco may sound like pure Detroit steel, but some of its products are built far from Motown. Partially because GM’s licensed the name in the past. According to SlashGear, “In 2009, Mobiletron, a Taiwanese company, licensed the name ACDelco Auto & Equipment Tools under the name Durofix USA.” Mobiletron’s factories are based in Taichung, Taiwan and Ningbo, China. “Durofix sources its power tools from a company named Regitar,” SlashGear continues, “which is also owned by Mobiletron.”
Even GM admits that AC Delco operates globally. Its own site says, “As a leading global automotive parts company, our presence and products can be found in markets worldwide.” That network includes “a wide portfolio of parts worldwide, including both GM Original Equipment and aftermarket parts.” It does not announce where the parts come from nearly as loudly.
GM does market its AC Delco parts as premium American products. They promise “GM Genuine Parts and ACDelco are the true OE parts installed during production or validated by General Motors,” and they’re “designed, engineered, tested to rigorous standards and backed by General Motors.”
Premium prices, foreign parts
Husar claims “Plaintiff and Class members paid a premium for these ACDelco products,” only to find out “Defendant’s ACDelco products are not made in the USA. They are made in China.” In his words, “Stamped onto the surface of the product was the phrase ‘Made in China.’” That stamp–which contradicted the packaging–revealed the truth.
He says GM is trading on its “iconic” American image while quietly offshoring parts. “General Motors is one of the most iconic American companies,” his complaint reads. “Defendant intended that Plaintiff and Class members rely on its false statements.”
Husar accuses GM of breaching both express and implied warranties. The lawsuit says, “Defendant’s ACDelco products… would not pass without objection under the contract description.” He’s asking the court to make GM stop mislabeling imports and to award damages to everyone duped into overpaying for foreign goods in red, white, and blue boxes.