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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

Lutz dishes dirt on GM in latest Autoline Detroit

Bob Lutz sits down for Autoline Detroit - Click above to watch video after the jump
Autoline Detroit recently played host to Bob Lutz, and, as is always the case, the former General Motors vice chairman dished out some great commentary. Lutz was promoting his new book Car Guys vs. Bean Counters: The Battle for the Soul of American Business, and talk quickly turned to his role as it related to product development and high-level decision making at GM. While on the topic of brand management, Lutz revealed a few rather interesting tidbits about his former employer:
All Chevrolet vehicles were required to have five-spoke aluminum wheels and a chrome band up front, as part of the Bowtie brand's overall image.

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.