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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

A chopped-up General Motors EV1 shell sold for $23,662

Despite not having a VIN, a powertrain, a frame, or any doors, a decrepit General Motors EV1 shell recently sold for $23,662.10 on govdeals.com. Sold by the University of Cincinnati, the car — or what remains of it — is headed to an electric vehicle collection called The Beata Electric Motor Carriage Collection. Technically, the GM EV1 was the first mass-produced and purposed-built electric car in America. When it was released in 1996 for the 1997 model year, however, GM strictly leased the car as part of a "real-world engineering evaluation." The limited production run was meant to test real life with an EV and judge the interest from the public. GM only built 1,117 units, all of which were recalled, and most of them ultimately were sent to the crusher. But a select few were stripped of their powertrains and donated to universities and museums for educational purposes. One of those non-functioning cars made it to the University of Cincinnati in 2008. The post says it "has been in storage since," but it's not clear if the car sat in storage untouched or was stored and used by the university. According to EpiclyEpicEthan1, who posted the sales listing to r/cars, the car was purchased by The Beata Electric Motor Carriage Collection in Colorado. The Beata (derived from the Latin word for blessed) collection is a gathering of '90s OEM electric vehicles and a general EV hub. The website says the vehicles are used for testing, diagnostics, education, events, and overall preservation and documentation. The rare and niche collection also includes a 1993 Dodge/Chrysler TEVan, a 1997 Honda EV Plus, a 1999 Dodge/Chrysler EPIC EV, a 1998 Ford Ranger EV, a 2002 Toyota RAV4 EV LongRanger III, a Tesla Roadster, a 1998 Nissan Altra EV, a 1998 Chevrolet S-10 EV, a 2011 Nissan Leaf, and a 2012 Tesla Model S. Beata also has several other projects under construction such as the 2000 Toyota RXT-G Prototype, a 1997 RAV4 coupe EV prototype, the 1995 AC Propulsion eCivic EV, a 1995 ACP RXT-G Prototype LongRanger II, a 1995 ACP RXT-G Prototype LongRanger I, and a GM EV1. Beata acts as a resource for EV1 owners and helps place parts it finds and doesn't need. The parts it does need are put into building a working EV1. Beata's current EV1, which is 80 percent complete, is made up from more than 50 different parts sources, including from all three versions of the EV1, the 1994 LPF4 PreView "Impact" series, the 1997 EV1, and the 1999 EV1.

US database may have overstated deaths in GM ignition switch recall

The FARS analysis didn't take into account fatal accidents where the airbags weren't supposed to deploy. Earlier today, we reported that the actual death toll attributable to GM's ignition switch problem had crested the 300 mark according to new research, well up from the original reports of 12 to 13 deaths. Now, word is breaking that the US government database that informed the study that the report was based on may have significantly overstated the correlation between the study and the GM recall. The initial study was conducted by Friedman Research on behalf of the Center for Auto Safety, and used something called the US Fatality Analysis Reporting System. To recap, the study claimed that over a 10-year period, 303 people were killed in Chevrolet Cobalt and Saturn Ion coupes and sedans when their airbags failed to deploy. These undeployed airbags were then linked to GM's ignition switch recall, which as we've explained before, can turn the ignition out of the "run" position and into the "off" or "accessory" position, disabling the airbags in the process. Now, according to a report from The Detroit News, which cites research from the Insurance Institute for Highway Safety and the National Study Center for Trauma and EMS at the University of Maryland, the FARS analysis didn't take into account fatal accidents in conditions where the airbags weren't supposed to deploy (which isn't to say crashes and deaths weren't caused by loss of control from the ignition switching off in the GM vehicles). According to the report, this was a significant number of the cases. There is another potential problem, too. According to that same report, the National Highway Traffic Safety Administration uses both FARS and another database on fatalities, called the National Automotive Sampling System/Crashworthiness Data System (NASS/CDS). Where FARS uses what the DetNews calls "not always reliable" police data to record vehicular deaths within 30 days of a crash, NASS/CDS relies on what's known as a probability sample. It collects data on 5,000 crashes each year – including some found in the FARS database – to calculate a probability figure. According to a 2009 IIHS study, "Among crashes common to both databases, NASS/CDS reported deployments for 45 percent of front occupant deaths for which FARS had coded nondeployments." In plain English, FARS doesn't provide a reliable count airbag deployments.