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GM won't pay owners of recalled cars for lost value

Kenneth Feinberg, the man in charge of the General Motors compensation fund dealing with the its widespread ignition switch woes, has issued an informal, two-letter response to the plaintiffs in more than 70 lawsuits seeking redress for lost resale value of their Cobalts: "No." The cases were recently combined into one, but Feinberg told The Detroit News that the fund will deal "only with death and physical injury claims," and that "perceived diminished value" will get no consideration.
ALG, the firm specializing in establishing residual values, determined that Cobalt owners had lost $300 compared to the segment competition and doesn't envision any long-term effects from the recall situation. Feinberg's statement comes in advance of public details on how the compensation fund will work and adheres to GM's long-held position on the matter. The company has already asked a judge to throw out such suits using the pre-bankruptcy defense, even as it stopped using that defense in cases of injury and death.
With plenty of potential gain from the GM suit, however, don't expect the plaintiffs to give up yet. When Toyota was sued for the same reason during the unintended acceleration debacle, it eventually settled the case for between $1 billion and $1.4 billion just to get it over with. Since the 85 law firms involved in the Toyota litigation took home more than $250 million of that total, we shouldn't expect the attorneys to give up on a GM payout, either.

Weekly Recap: BMW rolls out ambitious plug-in hybrid electric plan

"We believe that for the United States, this is going to be very important." – Julian Arguelles Let there be no doubt, BMW is serious about electric vehicles. The German automaker said this week it will make plug-in hybrid versions of all of its core models, an aggressive move that demonstrates its commitment to electric propulsion systems. BMW did not specify which vehicles will get the plug-in systems or provide a timeline for when they will arrive. But the announcement is clearly more than blustering, and the company revealed a 3 Series plug-in prototype this week at an event in France. BMW said the 3 Series uses a version of its 2.0-liter turbocharged four-cylinder engine (240 horsepower, 300 pound feet of torque) with an electric motor sandwiched between the engine and transmission in place of the torque converter. It has an all-electric range of 22 miles. A plug-in X5 with the same powertrain was also displayed alongside the 3 Series, though the X5 has been on the auto-show circuit for more than a year, including a recent stop in Los Angeles. Those two vehicles use "eDrive," and BMW's plans represent the first widespread transfer of its technology from development of the i3 and i8 models to more mainstream products. BMW said it's developing electric powertrains so they can be deployed rapidly across its range, and they are flexible enough to be used with fuel cells in future products. Enticingly, BMW is also working on a "Power eDrive" system, which debuted in a 5 Series GT concept at the event in France. This setup has two electric motors powered by a 20-kilowatt-hour battery pack, and when teamed with a four-cylinder turbo, pump out about 670 hp. Reinforcing BMW's commitment, the company will add more than 200 jobs at its factory in Dingolfing, Germany, to support electric-vehicle development. The moves come as BMW and other automakers diversify their portfolios while fuel economy and emissions regulations are getting tighter around the world. The United States has set a 54.5-mpg CAFE requirement for the 2025 model year. BMW said the electric vehicles were developed with an eye toward the US market, its government policies and its wide-ranging commuting styles. "We believe that for the United States, this is going to be very important," spokesman Julian Arguelles said. Ben Scott, a senior analyst in London with automotive research firm IHS, said BMW's moves are expensive – but necessary – to keep pace with the market.

GM seeks national mandate for zero-emissions cars

DETROIT — General Motors says it will ask the federal government for one national gas mileage standard, including a requirement that a percentage of auto companies' sales be zero-emissions vehicles. Mark Reuss, GM's executive vice president of product development, said the company will propose that a certain percentage of nationwide sales be made up of vehicles that run on electricity or hydrogen fuel cells. GM says a nationwide program modeled on such a requirement in California could result in 7 million electric vehicles, or EVs, on U.S. roads by 2030. California wants 15.4 percent of vehicle sales by 2025 to be EVs or other zero emission vehicles. Nine other states, including Maryland, Massachusetts, New Jersey and New York, have adopted those requirements. In January, California Governor Jerry Brown set a target of 5 million zero-emission vehicles in California by 2030. The Trump administration criticizes California's ZEV mandate, saying it requires automakers to spend tens of billions of dollars developing vehicles that most consumers do not want, only to sell them at a loss. Reuss told reporters that governments and industries in Asia and Europe "are working together to enact policies now to hasten the shift to an all-electric future. It's very simple: America has the opportunity to lead in the technologies of the future." A national mandate also would create jobs and reduce fuel consumption, CO2 emissions and "make EVs more affordable," Reuss added. GM, the nation's largest automaker, will spell out the request Friday in written comments on a Trump administration proposal to roll back Obama-era fuel economy and emissions standards, freezing them at 2020 levels instead of gradually making them tougher. Under a regulation finalized by the Environmental Protection Agency at the end of the Obama administration, the fleet of new automobiles would have to get 36 miles per gallon by 2025, 10 mpg higher than the current requirement. But the Trump administration's preferred plan is to freeze the standards starting in 2021. Administration officials say waiving the tougher fuel efficiency requirements would make vehicles more affordable, which would get safer cars into consumer hands more quickly. GM on Thursday said it doesn't support the freeze, but wants flexibility to deal with consumers' shift from cars to less-efficient SUVs and trucks.