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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: 1996 Saturn SC1

Before the Saturn marque got locked into a downward spiral of muddled brand image and billion-dollar Opel badge engineering, American car shoppers loved Saturns' plastic bodies and fixed-price buying experience. The original SC coupe looked a bit like the Isuzu-built Geo Storm but was a Michigan design and had a smaller price tag, and it sold well. Here's a final-model-year first-generation SC1, languishing in a Denver-area wrecking yard with nearly 300k on the clock. Saturn S-Series cars were simple machines, and many examples held together for the long haul. This one reached the kind of mileage figure you'd expect to see on a Camry or Civic from the same era. I'm not quite sure what's going on here, but I suspect that the car's final owner performed a bit of spray-foam-and-Bondo bodywork when the rear plastic body panels got munched in a crash. The twin-cam Saturn engines made respectable power, but this car has the 100-horse single-cam under the hood. The car weighed a mere 2,282 pounds, though, so it had about the same power-to-weight ratio as the slightly heavier Honda Del Sol, with a much lower price tag ($12,195 for the SC1 versus $15,250 for the Del Sol). With a manual transmission, which this car has, the SC1 was a lot more fun to drive than most frugal commuter cars of its era. It's no Saturn Ion Redline (an example of which I found nearby in the very same wrecking yard), but still an interesting chapter from the tale of the rise and fall of Saturn. When you want a two-door with some spunk, sleep on it first. Yeah, we're puzzled by this ad, too. Featured Gallery Junked 1996 Saturn SC1 View 14 Photos Auto News Saturn Automotive History Coupe

Car-crazy 5-year-old boy writes automakers for treasures, gets big response

Part of the beauty of children is that they can find worth in something adults might deem unworthy or overlook entirely. Five-year-old Patch Hurty didn't see garbage or a broken piece of a car when he spotted a Ford badge lying on the side of a road. He saw an artifact, a souvenir, a start to a collection he could only dream of. Ezra Dyer of Popular Mechanics tells the story of Patch and his quest to turn that one lost badge into a museum of manufacturer logos. According to the article, Hurty is a car fanatic through and through, even using car names as a way of learning to read. After finding the Ford badge near his Connecticut home, he and his mom put together a plan to reach out to dozens of automakers, confessing his love of things on four wheels. In each letter, Patch assembled a picture of himself standing next to one of the cars, and a penny to pay for whatever he hoped was sent his way. The response was unexpectedly and overwhelmingly positive. Of the more than 50 letters he sent out, including to obscure or defunct companies such as Bugatti, Suzuki, and Saturn, a majority responded with warm notes and some type of souvenir. Two of the coolest responses came from Lincoln and Bentley. Lincoln sent a sketch of a Continental (all car lovers enjoy drawing cars, right?), and Bentley sent a wheel center cap. How awesome is that? The story reminds us of something that can easily be lost in all of the negativity involved with the auto industry: Everybody is in this because of a common infatuation with automobiles. For more details on the souvenirs Patch received and accompanying photos, read the rest of the story. Related Video: News Source: Popular Mechanics Read This Bentley Bugatti Ford Lincoln Saturn Suzuki