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GM faces possible class action lawsuit over 8-speed transmission

General Motors has been hit with a class-action lawsuit from owners who allege the eight-speed automatic transmission found in several rear-wheel-drive Chevrolet, Cadillac and GMC models between the 2015 and 2019 model years has a defect that causes the vehicles to hesitate and jerk when accelerating or slowing down. The lawsuit was posted to ClassAction.org and spotted by GM Authority. Problems with GM's Hydra-Matic 8L90 and 8L45 transmissions have been well-documented on Internet forums and via complaints filed with the National Highway Traffic Safety Administration, with many reporting damage to their vehicles. The lawsuit was first filed in December in U.S. District Court for the Southern District of Florida but appears to have been transferred recently to New York. Autoblog sought comment from Theodore Leopold, the lead attorney for the plaintiffs. "These transmissions have a common defect," the complaint reads. "Drivers attempting to accelerate or decelerate their cars feel a hesitation, followed by a significant shake, shudder, jerk, clunk, or 'hard shift' when the vehicle's automatic transmission changes gears." The problem also occurs when the vehicles accelerate in a single gear, without shifting, the plaintiffs allege. "Drivers have reported that the shift is sometimes so violent, they feel as though they have been hit by another vehicle." The problem is believed to center on the transmission, torque converter or both. The complaint says it causes undue friction, causing hydraulic systems and gears to function improperly and sometimes leaves metal shavings throughout the transmission, leading to costly repairs and replacement of parts or the entire transmission. It says GM has known about the problems since shortly after it introduced the transmissions, and has issued 13 technical service bulletins, none of which have resolved the problem. GM declined to comment on the lawsuit. The plaintiffs say GM should have warned consumers about the issues and covered repairs under each vehicle's three-year/36,000-mile bumper-to-bumper warranty. They're seeking statewide classes in at least six states: California, Florida, Illinois, New York, Oklahoma and Texas.

GM earnings rise 1% as buyers pay more for popular pickups

DETROIT — General Motors said Thursday that higher prices for popular pickup trucks and SUVs helped overcome slowing global sales and profit rose by 1% in the second quarter. The Detroit automaker said it made $2.42 billion, or $1.66 per share, from April through June. Adjusting for restructuring costs, GM made $1.64 per share, blowing by analyst estimates of $1.44. Quarterly revenue fell 2% to $36.06 billion, but still beat estimates. Analysts polled by FactSet expected $35.97 billion. Global sales fell 6% to 1.94 million vehicles led by declines in North America and Asia Pacific, Middle East and Africa. The company says sales in China were weak, and it expects that to continue through the year. In the United States, customers paid an average of $41,461 for a GM vehicle during the quarter, an increase of 2.2%, as buyers went for loaded-out pickups and SUVs, according to the Edmunds.com auto pricing site. The U.S. is GM's most profitable market. Chief Financial Officer Dhivya Suryadevara said she expects the strong pricing to continue, especially as GM rolls out a diesel pickup and new heavy-duty trucks in the second half of the year. "We think the fundamentals do remain strong, especially in the truck market," she said, adding that strength in the overall economy and aging trucks now on the road should help keep the trend going. Light trucks accounted for 83.1% of GM's sales in the quarter, and pickup truck sales rose 8.5% as GM transitioned to new models of the Chevrolet Silverado and GMC Sierra, according to Edmunds, which provides content to The Associated Press. As usual, GM made most of its money in North America, reporting $3 billion in pretax earnings. International operations including China broke even, while the company spent $300 million on its GM Cruise automated vehicle unit. Its financial arm made $500 million in pretax income. Suryadevara said GM saw $700 million in savings during the quarter from restructuring actions announced late last year that included cutting about 8,000 white-collar workers through layoffs, buyouts and early retirements. The company also announced plans to close five North American factories, shedding another 6,000 jobs. About 3,000 factory workers in the U.S. whose jobs were eliminated at four plants will be placed at other factories, but they could have to relocate. GM expects the restructuring to generate $2 billion to $2.5 billion in annual cost savings by the end of this year.

2020 Cadillac CT4 First Drive | Small shoes to fill

Following an existential crisis of fits, starts, headquarters moves and executive shakeups, Cadillac has itself a new luxury sedan, the CT4. It’s a convincing driverÂ’s car, less convincing as a luxury car, and seems a long shot to lure BMW, Audi or Mercedes owners into the Cadillac fold. For all the changes at Cadillac, that sure sounds familiar. The 2020 Cadillac CT4 is a redesigned ATS by another, equally unmemorable name. That includes an updated rear-drive chassis with eager, enthusiast-friendly tuning and 50/50 weight distribution – always among the ATSÂ’ top selling points. Styling is another winner, with crisp sheetmetal and CadillacÂ’s distinctive lighting signatures helping to differentiate this Yank from the international crowd. Cadillac is stretching so hard to cherry-pick the CT4Â’s competitors, it's possible they might slip a disc. We all remember the ATS as an able, rear-driven rival to the compact BMW 3 Series, Mercedes C-Class et al. But to paint the CT4 in a more competitive light – even as this sedan grows nearly 5 inches in length versus the ATS – Cadillac suddenly claims that its entry-level model, regardless of what it's now called, competes against subcompact, front-drive-based models like the BMW 2 Series Gran Coupe, Mercedes CLA-Class and Audi A3. Unfurling a tape measure reveals the truth: At a bit over 187 inches, the CT4 is actually longer than a 3 Series, C-Class, Audi A4 and every other major compact player. ItÂ’s a foot longer than an Audi A3. So, it's not a subcompact sedan, but there is one area where the CT4 does align with them – just not in a good way. The back seat is scrawny and hard-to-access, the result of its rear-wheel-drive platform and the sort of inefficient packaging that plagued the ATS. As such, it's better to think of the CT4, like the Genesis G70, as an affordable alternative to the roomier 3 Series, and other German compacts. And thereÂ’s nothing wrong with that. It starts at $33,990, undercutting the Germans by many thousands, and still boasts CadillacÂ’s greatest competitive strength: Smartly engineered ride-and-handling that matches up against the Euros with no excuses required. I drove the evident smart play in the CT4 lineup, the Premium Luxury 2.7 model, priced from $40,990, or $42,990 for the all-wheel-drive version I tested. (A Premium Luxury with the 237-horsepower 2.0T starts from $38,490, or $41,690 with AWD).