Microheat files for bankruptcy after GM recall

[Klaus]

Microheat files for bankruptcy after GM recall

Posted Oct 15th 2008 5:58PM by Michael Harley
Filed under: Aftermarket, Gadgets, Recalls/TSBs



Microheat Inc., the company responsible for inventing and supplying General Motors with their HotSpot windshield cleaning system, has filed for Chapter 11 bankruptcy protection. The technology utilized heated liquid to clean the front glass of debris, ice, and snow. Unfortunately, a short circuit on a printed circuit board could overheat and lead to a fire (removing contaminants from much more than just the front windshield).

As a result, GM recalled 944,000 vehicles and dropped Microheat, and their HotSpot product, from the lineup. Even with the system no longer offered on vehicles, things are cooking in court as GM is now seeking $20-25 million in damages to cover the cost of the recall. Without the assets to cover the charges, bankruptcy protection could only be expected.

While GM's HotSpot recall solves the overheating problem with a simple inline fuse, the new filing by Microheat only seems to be fueling the fire.

http://www.autoblog.com/2008/10/15/m...ter-gm-recall/