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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.

GM might outsource vans to AM General

General Motors will possibly boost production of the Chevrolet Colorado and GMC Canyon at the Wentzville Assembly Plant in Missouri by contracting out some commercial van manufacturing to AM General. Demand for the two midsize trucks continues to boom, and GM would like to take advantage of the strong market for them. The possible deal came to light in a letter to workers at the factory, according to Automotive News. "This potential partnership would free up production capacity and allow the organization to capitalize on our ability to build midsize trucks to further satisfy customer demand," a portion of the document allegedly said. AM General would reportedly only take over assembly of the cutaway versions of the Chevy Express and GMC Savana. Customers and critics have quickly embraced the latest Colorado and Canyon since their introduction. The Chevy just won back-to-back Motor Trend Truck of the Year awards. GM also had to add a third shift and extra workers in 2014 just to keep up with demand. The Wentzville plant even increased employment on the weekends earlier in 2015 to assemble an extra 2,000 of the trucks each month. While the two pickups boom, deliveries for the Chevy Express and GMC Savana are down 26.9 percent and 26.6 percent respectively through the first 10 months of the year. GM doesn't break out numbers for the cutaway versions, but they make up about a third of production, according to Automotive News. AM General built the Humvee for the US military and does some contract work with automakers. For example, the company's Indiana factory now produces the Mercedes-Benz R-Class for export to China. Here's hoping this potential deal will help both GM and AM General keep their factories humming. Related Video:

Recharge Wrap-up: Volt makes up third of Quebec Chevy dealerships sales, Tesla seeks Aussie talent

A Chevrolet dealership in Quebec has had the Volt make up 35 percent of its sales so far this year. Bourgeois Chevrolet in Rawdon, Quebec received recognition for the feat at the 2014 Electric Vehicle Conference, where it won the award for Leading Plug-in Hybrid Electric Vehicle Dealership. To sell that many, Bourgeois Chevrolet had to import used Volts from the US, and keeps about 50 units on the lot in various configurations. The conference also saw Park Avenue Nissan of Brossard, Quebec win the Leading Battery Electric Vehicle Dealership Award, and Loch Lomond Mitsubishi of Saint John, New Brunswick receive the award for Electric Vehicle Dealership Inspiration. Read more at Green Car Reports. Tesla Motors has begun scouting Australian engineers as other automakers shutter operations there. Ford, General Motors and Toyota have announced that they will shut down their Australian factories, leaving behind a lot of unused talent. Tesla recently held a "Recruiting Open House" in Melbourne for engineers to fill positions at its plant in Fremont, CA, where they will be paired with other Aussie engineers already on staff. Read more at Green Car Reports, or at Motoring. Electric turbochargers may come to play a key role in making internal combustion engines more efficient. Valeo recently showed an electric turbo it plans to supply to an unnamed automaker at a fuel economy showcase event at the EPA's National Vehicle Emissions and Fuel Lab. Electric turbochargers have the advantage of greatly reduced lag when compared to exhaust-driven turbos. They also work well when paired with cylinder deactivation, providing a much-needed boost when driving on a grade, which can help reduce the need for cylinders to reactivate. Independence from the exhaust system also makes it easier to package the turbocharger wherever there is room. Read more from Navigant Research. US crude oil futures have dropped to their lowest in more than two years. Saudi Arabia cut oil costs for the US and raised them for Europe and Asia as the US has increased output. On November 3, US crude futures fell as much as 2.2 percent in New York. West Texas Intermediate closed at $78.78, the lowest since June 2012. Brent crude slipped $1.08 to $84.78 a barrel. Read more at Bloomberg.