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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

Saturn Vue ignition issue was discussed three times before recall, new documents reveal

Despite the tens of millions of recalled vehicles this year, it's somewhat rare that we get a glimpse into what goes into deciding when to conduct one of these safety campaigns. New documents published by General Motors and the National Highway Traffic Safety Administration are giving us an interesting opportunity to see how the sausage is made and show the number of meetings it takes to declare a recall.
In early August, GM added about another 269,000 vehicles to its 2014 recall tally in the US when it announced a slew of new safety campaigns. Among them was a fix for the 2002-2004 Saturn Vue that covered 202,155 of them in the US. The problem was that the key could be removed from the ignition even when it wasn't in the "OFF" position, and that had caused two crashes and one injury, according to the automaker.
Where we start to see behind the veil is in the defect notice freshly released by NHTSA. It shows that GM began investigating more widely for ignition switches in April, shortly after the company expanded its ignition switch recall to a variety of Saturn products, among others, according to Automotive News. The automaker found 152 reports in the 2002-2004 Vue of vehicles rolling away or the key being removed out of a total population of 215,243 units worldwide.

GM nixes fleet-only Chevy Captiva Sport

Well, guys, it looks like Saturn is finally dead in the United States once and for all. According to Automotive News, Chevrolet has discontinued production of its fleet-only Captiva Sport - a rebadged Saturn Vue - after three years on the market. The very last US-spec Captiva Sport was built in Mexico in August. GM will still produce the vehicle for sale in the Mexican market, as well as for export.
GM initially offered the Captiva Sport for rental fleets as a way to free up capacity for the sightly larger Chevy Equinox and GMC Terrain crossovers, which, according to AN, had been in short supply. The Captiva Sport also did a nice job protecting the resale values of its other similar-sized CUVs because they didn't have to play in the fleet market. But with Chevrolet preparing to launch its subcompact Trax CUV in the US, the automaker will soon have a clear, three-tier crossover lineup without the Captiva Sport. The Trax fills out the bottom end, followed by the Equinox and the seven-passenger Traverse.
For now, renters seeking a taste of 'Classic GM' will have to whet their appetites with the fullsize Impala Limited.