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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

STUDY: Ford owns brand loyalty in 2009; Scorned Saturn, Pontiac buyers will look outside of GM

Ford buyers appear to love their cars more than customers of any other automotive brand, returning back to the American automaker when it comes time to purchase their next vehicle. According to a study by Experian Automotive, six of the top 10 vehicles for customer brand loyalty wear badges from the Blue Oval. That includes the Ford Fusion (62.4 percent), Ford Edge (57.9 percent), Ford Five Hundred/Taurus (56 percent), Ford Freestyle (51.9 percent), Ford Escape (49.4 percent) and the Ford Focus (47.57 percent).
Other vehicles making up the top 10 include the Toyota Prius (52 percent), Chevy Impala (51.7 percent), Toyota Camry (47.8 percent) and Toyota Corolla (47.56 percent). This brings up an interesting question: With the closing of automotive brands like Saturn and Pontiac, where are those buyers to turn for their next automotive purchase?
Apparently, not back to General Motors. According to Experian, Pontiac owners are most likely to look to the Ford lineup for their next car or truck and Saturn shoppers will switch to Toyota or Honda - not particularly surprising given that Saturn was meant to compete with import brands. Experian predicts that GM's overall market share will fall from 20 percent to about 17.5 percent, with most of the slack being picked up by Ford, Honda and Toyota.

GM calling in 56k Saturn Aura sedans over shift cables

General Motors may have made a few mistakes when it came to the whole ignition-switch debacle, and it will likely be dealing with the consequences for some time to come. But you have to hand it to Mary Barra and her team, because they're determined to clean house and avoid the same mistakes. That's why the biggest of the Big Three automakers in Detroit has been issuing recalls left, right and Renaissance Center. Aside from those vehicles fitted with the faulty ignition switches, GM has recalled over 50,000 Cadillac SRXs, another 50 heavy-duty pickups and some 51,000 full-size crossovers. There are bound to be more to come, and now it's issued another 50k-unit recall over faulty shift cables in the transmission.
The recall affects 2007 and 2008 Saturn Auras fitted with the four-speed automatic transmission manufactured between April 24, 2006, and October 31, 2007. The recall doesn't affect models equipped with the six-speed automatic, or for that matter any of the Aura's Epsilon platform-mates like the Chevy Malibu, Pontiac G6, Opel Signum and Vectra, Saab 9-3 or - carrying over from Fiat's aborted partnership with GM - the Fiat Croma, although many of those models used the same 4T40 transmission employed in the Aura.
In the affected vehicles, the shift cable might fracture while in motion, preventing the transmission from shifting into Park or the ignition from switching off, which the National Highway Traffic Safety Administration figures could lead to the car rolling away. Hence the recall of 56,214 units in the United States, owners of which can expect to hear from their dealership in due course to have the necessary components replaced.