1954 Chevrolet Corvette on 2040-cars

Auto blog

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.

Seeing the Detroit Auto Show via drone

Seeing the Chevrolet display at the Detroit Auto Show is worth doing this year, and not just because of the new Corvette Z06, Volt and Bolt concept. In order to attract the new kids, The Bowtie has gone what the old kids used to call "buck wild" with their show stand at Cobo Hall. A Corvette Z06, Trax, and Colorado are parked along a central aisle, called Mainstreet, at the end of which is a 20-foot-tall, 73-foot long transparent screen lording over the new Volt. Elsewhere are five more 20-foot-tall screens broadcasting nine stories today's Chevrolet wants to tell about its vehicles, from performance to belief in the power of play to its 4G LTE-equipped OnStar telematics service. Then there are the social media and virtual reality safety installations, the community presentations and more. Chevrolet flew a drone through the stand to show off what it's doing, which is has replaced eye-level video as the next best thing to being there. You can check it out in the video above.

How real is the Chevy Bolt EV and will it really cost $30,000?

"This is us bragging that we can do this kind of car." That's how Michael Simcoe, GM's executive director for NA exteriors, described the Chevy Bolt EV concept, which made a surprise appearance at the Detroit Auto Show today. While there was talk of a 2017 production debut, this is for sure a concept vehicle. But that means the ideas behind the vehicle are perhaps more important than the details. For example, no one is talking about what size battery might appear in a production Bolt, but Simcoe would talk about how rapid progress in battery improvements made it possible for GM to make the bold Bolt declaration that promises 200 miles and a price tag of around $30,000 (after incentives). But if the Bolt makes it to market, it won't be until 2017 (as rumored) or later, is it really fair to promote the car as being available with a federal tax credit? For one thing, credits for plug-in vehicles may change in the next few years, but if the laws stay the same, each manufacturer is limited to 200,000 vehicles before the credits start to decline. GM is justifiably proud that it's sold over 70,000 Volts thus far, but with a new model coming out later this year and a few years to go until the Bolt potentially arrives, GM could be pushing right up against that 200,000 limit when the Bolt goes on sale. But Volt executive chief engineer Pam Fletcher told AutoblogGreen that, "We're just trying to take some of the confusion out." "Think about talking to the average consumer," she said. "First, going through the explanation of how the federal tax credit was set up, how it's being used and so on. [In the industry, we] have the luxury of understanding the nuances of that regulation, but right now people who aren't in the marketplace, they don't have the luxury of all that. It's already hard to communicate the details so we gave them data in a way that is what they're used to seeing." There was one question that drove the two-year Bolt gestation and design period, Simcoe said: What does a better battery offer a vehicle designer? "We've got a number of spaces we play in for powertrain technology and obviously electrification is one of them," he said. "With Volt 1 and then the Spark EV, with that development and batteries getting better for us, we started doing some practical packaging to deliver a vehicle which was not the traditional aero form which you see around electric vehicles.