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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.

GM recalls Colorado, Canyon, and Malibu for airbag problem

The Basics: General Motors will recall and issue a stop sale on 1,740 total examples of the 2016 Chevrolet Colorado, Malibu, and GMC Canyon. This includes 1,579 units in the US and 161 in Canada. The Problem: The second stage of the driver front airbag inflator might not be present. If this happens, the airbag won't fill as quickly as it should in a high-speed crash, which could increase the risk of injury, according to Reuters. This is not related in any way to Takata's inflator problems, and these parts come from a different supplier. Injuries/Deaths: None reported. The Fix: GM will replace the vehicles' airbag assemblies. If You Own One: GM spokesperson Tom Wilkinson told Autoblog he wasn't specifically sure when recall repairs would begin but said it would be "shortly." He expects the fixes to happen "quickly" because of the small number of affected vehicles, and many of them are either in transport or already in dealer stock. More Information: GM recalled the 2015 Canyon and Colorado in 2014 for a completely separate airbag issue. In that case, a manufacturing error improperly wired the connectors. Related Video: GM Statement GM is recalling 1,579 MY 2016 Chevrolet Colorado, GMC Canyon and Chevrolet Malibu vehicles in the United States and 161 in Canada to replace driver-side front airbags. The second stage of the airbag may not deploy properly in certain high-speed crashes. During a routine quality inspection, it was determined that a component required for a second-stage/high-output deployment was not loaded during the inflator build. Dealers will replace the driver-side front airbag assembly. There have been no reports of crashes or injuries related to this issue. This issue is unrelated to the ongoing Takata recalls.

Mustang retakes monthly pony car sales crown from Camaro

Going back to their origins in the Swinging '60s, the Ford Mustang and Chevrolet Camaro have been fierce rivals for fans' hearts and dollars. Historically, the Ford often led in volume, but Chevy took the muscle car top spot in 2009 upon the Camaro's rebirth. However, with the launch of the latest Blue Oval pony car, the tide is turning back in Ford's favor. November was the first full month of sales for the new 2015 Mustang, and according to TheDetroitBureau.com, the model did spectacularly well. The Blue Oval shifted 8,728 of them, up 62 percent from same month last year, with the automaker proclaiming it the model's best November sales since 2006. Conversely, 4,385 units of the Camaro were delivered, down 13.5 percent year-over-year, meaning its sales were roughly half that of the new-generation Mustang. Ford is understandably happy with the results, and product development director Raj Nair even hinted to TDB that another version of the Mustang might be unveiled at January's North American International Auto Show. Rumor has it that the model will be the even more potent Shelby Mustang GT350R. Despite the Mustang's November success, the Camaro outsells it year to day. So far in 2014, Ford has sold 73,124 Mustangs versus 79,669 examples of the Camaro. With December offering the last chance for an overtake, the Bowtie may yet remain king for this year's sales crown. A new Camaro is peeking over the horizon, as well. It's reportedly moving to the Alpha platform used by the Cadillac ATS, and production could start in late 2015. Prototypes are already testing at the Nurburgring, and camouflaged examples have been spotted weirdly being compared to its '80s forefather.