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New GM gets to skip pollution cleanups

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General Motors Company President and CEO Fritz Henderson announces that the auto giant has emerged from bankruptcy during a press conference in Detroit, Michigan Friday, July 10, 2009. Henderson said the new GM will be far faster and more responsive to customers. (UPI Photo/John F. Martin/GM) 
Published: Aug. 7, 2009 at 11:03 AM

DETROIT, Aug. 7 (UPI) -- General Motors Co. avoided millions of dollars in liability for removing pollution at discarded U.S. plants when it emerged from bankruptcy, officials say.

GM was allowed to emerge as a new company and to avoid billions of dollars in liabilities, including government pollution claims, the Detroit Free-Press reported.

The old GM was left with $530 million in environmental liabilities. State and local officials have told the Detroit Free Press they fear the cleanups will be shortchanged, especially in the projected restoration of Buick City in Flint, Mich., which was closed in 1999 and demolished in 2002.

Other states voicing concerns include New York, Ohio, Delaware, Indiana and Colorado.

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