1962 Chevrolet C-10 Custom Cab on 2040-cars

Auto blog

GM won't pay owners of recalled cars for lost value

Kenneth Feinberg, the man in charge of the General Motors compensation fund dealing with the its widespread ignition switch woes, has issued an informal, two-letter response to the plaintiffs in more than 70 lawsuits seeking redress for lost resale value of their Cobalts: "No." The cases were recently combined into one, but Feinberg told The Detroit News that the fund will deal "only with death and physical injury claims," and that "perceived diminished value" will get no consideration.
ALG, the firm specializing in establishing residual values, determined that Cobalt owners had lost $300 compared to the segment competition and doesn't envision any long-term effects from the recall situation. Feinberg's statement comes in advance of public details on how the compensation fund will work and adheres to GM's long-held position on the matter. The company has already asked a judge to throw out such suits using the pre-bankruptcy defense, even as it stopped using that defense in cases of injury and death.
With plenty of potential gain from the GM suit, however, don't expect the plaintiffs to give up yet. When Toyota was sued for the same reason during the unintended acceleration debacle, it eventually settled the case for between $1 billion and $1.4 billion just to get it over with. Since the 85 law firms involved in the Toyota litigation took home more than $250 million of that total, we shouldn't expect the attorneys to give up on a GM payout, either.

Star Wars Car Drives To The Dark Side Of Comic Con

When it comes to designing coveted collectible toys for sale at Comic-Con, the annual celebration of pop culture lifting off Thursday in San Diego, the sky's the limit for the designers at Mattel. Fittingly, the building where Mattel's dreamers conceive of their limited-edition playthings is just down the street from the Los Angeles International Airport. Inside the colorful design center - a Hot Wheels-themed shuttle bus transports employees from Mattel's parking garage - the designers have spent the past year working on 10 toys created especially for the Comic-Con crowd, including a replica of the Batmobile from the upcoming game "Batman: Arkham Knight" and a 9-inch-tall action figure of Superman killer Doomsday. "We don't have to worry about retail. We don't have to worry about margins," said Doug Wadleigh, Mattel's senior vice president of global brand marketing for boys and entertainment. "We don't have to worry about operational efficiencies. We only have to worry about creating the coolest toys for our fans. Period." It also offers some escape from Mattel's reality these days. Like other toy makers struggling in this digital, video-centric age, the company is trying to remain relevant in the retail world. Core brands like Barbie have seen less of a demand, with a 14 percent drop in sales in the first quarter of this year. Mattel had a net loss for the first three months ending March 31 that totaled $11.2 million. But things will at least seem rosier at Comic-Con, where eager buyers for the toys await (the only other place they will be sold is on the Mattel collector's site). Mattel's exclusives this year run between $20 and $85, but elite toys can fetch much more when they're put up for auction. The crown jewel for Wadleigh and his team this year is a Darth Vader die-cast car, the first official collaboration from Hot Wheels and the "Star Wars" franchise. The car - imagine if a Chevrolet Corvette C5 and the villainous Sith lord's helmet had a baby - comes in a sleek black box and encased in a replica of Vader's lightsaber, complete with a swooshing sound effect. "We've been trying to partner with Lucasfilm and Disney on this property for a long time," said Wadleigh. A full-size working replica of the Vadermobile will be on display at Mattel's booth at the massive San Diego Convention Center.

Weekly Recap: GM plans massive new paint shop at Chevy Corvette factory

General Motors is laying out some serious green to maintain the Chevy Corvette's expansive color palette. The automaker is breaking ground on a new paint shop this summer that's part of a $439-million investment to upgrade the 34-year-old Bowling Green, KY, factory that builds the Stingray. The massive new structure will total 450,000 square feet, nearly half the size of the current 1-million square-foot facility. Construction is expected to take two years and won't impact Corvette production. The upgrades include new robots that save paint and create a better finish, longer, more efficient ovens to bake in the finish, and LED lighting. There's also a dry scrubbing booth technology with a limestone handling system that eliminates waste. GM has invested $135 million in the factory in last four years for the changeover to build the C7 and to relocate its Performance Build Center to Bowling Green. The improvements continue to modernize the Kentucky factory, which has become a tourist attraction in its own right, as more than 56,000 enthusiasts visited it last year. The upgrades are part of a $5.4-billion investment GM confirmed in April that will remake its US footprint in the next three years. The Bowling Green expansion underscores GM's continued commitment to the Corvette, which sold nearly 38,000 copies around the world last year, an eight-year high. "With this major technology investment, we can continue to exceed the expectations of sports car buyers for years to come," North American manufacturing manager Arvin Jones said in a statement. OTHER NEWS & NOTES Takata recall hits 34 million vehicles The National Highway Traffic Safety Administration expanded the Takata airbag recall to an almost unthinkable 34 million vehicles on Tuesday. The recall is part of an agreement reached by the two sides where Takata admitted some of its airbag inflators have a defect, and the deal compels the company to comply with all future regulatory actions and investigations. Takata's airbag inflators were produced with "a propellant that can degrade over time" and lead to ruptures, NHTSA said. Six deaths have been attributed to the flaw worldwide. Investigations conducted by Takata, automakers, and others have not determined the exact cause of the inflator problem, but NHTSA said moisture appears to alter the propellant's chemical structure. It then ignites too rapidly, creates too much pressure that ruptures the inflator, and blasts shards of metal at passengers.