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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

Junkyard Gem: 2004 Saturn Vue with manual transmission

GM's Saturn Division has been gone since the final 2010 Auras, Outlooks, Skies, and Vues slunk apologetically out of the showrooms, and I'm doing my best to document the more interesting models from The General's once-revolutionary brand. Some of the later Saturns began life as Opel designs, but the Vue actually was the first vehicle to go on the all-new GM Theta platform; the Opel Antara was thus a Saturn copy, a fact that Saturn fans no doubt trot out when they get shamed by Opel zealots over the Astra. Today's Junkyard Gem is a most unusual Vue, in the sense that its original purchaser was fine with both the base manual transmission and the leather-upholstery upgrade. Sure, the cheapest way to buy a new Vue— which was sold here for the 2002-2007 model years— was to get it with the base transmission: a five-speed manual. You can still buy a new car with a five-on-the-floor manual right now, but only in a handful of cheapmobiles; by the middle 2000s, a tiny-and-ever-shrinking subset of American car shoppers would even consider a three-pedal commuter vehicle. Really, there were only two reasons an American new-car buyer would have considered a non-enthusiast vehicle with a manual transmission in 2004: either an eccentric preference for the good ol' stickshift or just plain penny-pinching. The cheapest possible '04 Vue was the version with four-cylinder 2.2-liter engine, front-wheel-drive, and five-speed manual transmission, and it started at $17,025 (about $26,080 in 2022 dollars). That's what we're looking at here. The optional CVT automatic transmission cost an additional $2,095 ($3,210 today), so it made sense to get the manual if you wanted to save serious money on your Vue. However, this car is loaded to the gunwales with nice equipment upgrades, to the tune of at least the Leather Appointments Package ($755) and the Sports Plus II Package ($1,300) and probably a lot more.  So, a buyer who didn't care about power (so no V6 engine), didn't want all-wheel-drive, liked driving a manual transmission Â… but insisted on power everything and a full-zoot comfy leather interior Â… in a cheap small SUV sold by a fast-fading brand. The conversations with the Saturn salesmen about this thing must have been interesting. Built in Tennessee, sold new in Denver, will be crushed near Pikes Peak.

Are orphan cars better deals?

Most folks don't know a Saturn Aura from an Oldsmobile Aurora. Those of you who are immersed in the labyrinth of automobilia know that both cars were testaments to the mediocrity that was pre-bankruptcy General Motors, and that both brands are now long gone. But everybody else? Not so much. By the same token, there are some excellent cars and trucks that don't raise an eyebrow simply because they were sold under brands that are no longer being marketed. Orphan brands no longer get any marketing love, and because of that they can be alarmingly cheap. Case in point, take a look at how a 2010 Saturn Outlook compares with its siblings, the GMC Acadia and Buick Enclave. According to the Manheim Market Report, the Saturn will sell at a wholesale auto auction for around $3,500 less than the comparably equipped Buick or GMC. Part of the reason for this price gap is that most large independent dealerships, such as Carmax, make it a point to avoid buying cars with orphaned badges. Right now if you go to Carmax's site, you'll find that there are more models from Toyota's Scion sub-brand than Mercury, Saab, Pontiac, Hummer, and Saturn combined. This despite the fact that these brands collectively sold in the millions over the last ten years while Scion has rarely been able to realize a six-figure annual sales figure for most of its history. That is the brutal truth of today's car market. When the chips are down, used-car shoppers are nearly as conservative as their new-car-buying counterparts. Unfamiliarity breeds contempt. Contempt leads to fear. Fear leads to anger, and pretty soon you wind up with an older, beat-up Mazda MX-5 in your driveway instead of looking up a newer Pontiac Solstice or Saturn Sky. There are tons of other reasons why orphan cars have trouble selling in today's market. Worries about the cost of repair and the availability of parts hang over the industry's lost toys like a cloud of dust over Pigpen. Yet any common diagnostic repair database, such as Alldata, will have a complete framework for your car's repair and maintenance, and everyone from junkyards to auto parts stores to eBay and Amazon stock tens of thousands of parts. This makes some orphan cars mindblowingly awesome deals if you're willing to shop in the bargain bins of the used-car market. Consider a Suzuki Kizashi with a manual transmission. No, really.