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GM isn't liable for punitive damages in ignition switch cases

NEW YORK — A federal appeals court said General Motors is not liable for punitive damages over accidents that occurred after its 2009 bankruptcy and involved vehicles it produced earlier, including vehicles with faulty ignition switches. The 2nd U.S. Circuit Court of Appeals in Manhattan said on Tuesday that the automaker did not agree to contractually assume liability for punitive damages as part of its federally-backed Chapter 11 reorganization. GM filed for bankruptcy in June 2009, and its best assets were transferred to a new Detroit-based company with the same name. The other assets and many liabilities stayed with "Old GM," which is also known as Motors Liquidation Co. Tuesday's 3-0 decision may help GM reduce its ultimate exposure in nationwide litigation over defective ignition switches in several Chevrolet, Pontiac and Saturn models. It is also a defeat for drivers involved in post-bankruptcy accidents, including those who collided with older GM vehicles driven by others, as well as their law firms. The ignition switch defect could cause engine stalls and keep airbags from deploying, and has been linked to 124 deaths. A lawyer for the drivers and their law firms did not immediately respond to requests for comment. GM had no comment. Circuit Judge Dennis Jacobs said GM's agreement to acquire assets "free and clear" of most liabilities excused it from punitive damages claims for Old GM's conduct. He also noted that the judge who oversaw the bankruptcy concluded that the new company could not be liable for claims that the "deeply insolvent" Old GM would never have paid. The decision upheld a May 2018 ruling by U.S. District Judge Jesse Furman in Manhattan, who oversees the ignition switch litigation. Drivers have sought a variety of damages in that litigation, including for declining resale values. GM has recalled more than 2.6 million vehicles since 2014 over ignition switch problems. It has also paid more than $2.6 billion in related penalties and settlements, including $900 million to settle a U.S. Department of Justice criminal case. The case is In re: Motors Liquidation Co, 2nd U.S. Circuit Court of Appeals, No. 18-1940. Government/Legal Chevrolet Pontiac Saturn Safety gm ignition switch

Trans Am Depot teases 2014 GTO

Here comes the Judge. Court is in session. The verdict is in. How many more tired clichés can we come up with? It hardly seems to matter, because it's happening: Trans Am Depot has announced via the teaser video below that it is launching a 2014 GTO, complete with Carousel Red (bright orange, really) paint and full Judge badging.
The car is based on Trans Am Depot's 6T9 Goat, which, in case you don't get the reverential references, is meant to mimic the look of the 1969 Pontiac GTO. As with the company's other cars -including the 2013 Hurst Edition Trans Am we recently drove - the GTO will be based on the current Chevy Camaro, which means two doors, V8 engines and rear-wheel drive, just like the muscle cars of days past.
As for actual details of what's under the 2014 GTO's hood, we're completely left hanging. We'd expect some sort of power adder (turbo, supercharger or possibly some other form of a highly massaged version of the Camaro's V8), and we certainly know that GM has any number of hi-po crate engines to choose from.

GM doing fine at retaining Pontiac owners

This isn't the first time we've reported positive news about General Motors retaining former Pontiac owners. Get a few more stories like this latest report from Edmund's Auto Observer, and it will mark an ongoing positive trend for GM. Edmunds.com crunched the numbers to see how well the General is hanging on to customers after shutting out the lights at Pontiac, and it found that nearly 40 percent of Pontiac owners stayed with a vehicle from a General Motors brand.
The numbers are a little lower than an earlier R.L. Polk & Company study, but Edmunds says General Motors is keeping more former Pontiac buyers than it has since 2007. Most are turning to vehicles from Chevrolet, especially during January and February of 2011, when GM incentivized Pontiac owners to stay under the umbrella. Those moves seem to have worked, and 28.1 percent of Pontiac owners trading up made the jump into a Bowtie.
Buyers that have gone elsewhere have largely stayed loyal to Domestic automakers, with Ford picking up the most conquests from Pontiac, with 9.4 percent switching. Toyota and Honda picked up 7.4 percent of the pool of former Pontiac drivers. The numbers are defying any predictions that Pontiac buyers would completely exit the General Motors fold, and have climbed up closer to parity with the retention figures of other GM brands from a 2009 low of only 16 percent retention.