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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.

Recharge Wrap-up: Free chargers for Canadian ELR buyers, Renovo gets funding for EV supercar

Chevrolet offers versions of its Express passenger van with B20 biodiesel and E85 capability. Customers can buy the van with the Duramax turbodiesel V8, which is compatible with the 20-percent biodiesel blend. There is also a FlexFuel V8, which can use the 85-percent ethanol gasoline blend. It's a great option for shuttling the whole soccer team to practice using renewable fuels. Read more at Domestic Fuels. Early buyers of the Cadillac ELR in Canada will get a 240-volt charger installed at their home for free. It should help convince some buyers to adopt the range extended luxury EV. Cadillac's Chief Marketing Officer Uwe Ellinghaus says, "Professional installation of the fastest home-charging unit is a natural way to mark the introduction of ELR to the luxury market." Read more in the press release below. Renovo has received venture capital funding from California-based True Ventures to build its Coupe electric supercar. The impressive EV, with its 500 horsepower and 1,000 pound-feet of torque, is an inspiring vehicle built by a promising company, according to its financial backers. Toni Schneider of True Ventures says that Renovo has "created incredibly advanced technology and a beautiful machine that is well positioned to disrupt the automotive market." Read more in the press release below. Renault says it will build its Fluence ZE electric car in China for an unnamed brand, pending government approval. Chief Executive Carlos Ghosn announced the plan at a test drive event in France on Monday. Renault has a partnership with Dongfeng Motors to build and sell its cars in China. Read more at Reuters. Germany has lifted its ban on Uber. While the German court believes the ride-hailing service is operating illegally without proper licensing for drivers, it says Taxi Deutschland waited too long to file the case against Uber. The taxi association plans to appeal the decision soon. See more in the video below, and read more at The New York Times. A new report from UC Davis claims that a global expansion of public transit could save 1,700 megatons of carbon dioxide yearly and over $100 trillion by 2050. A "high-shift scenario" would be necessary, wherein governments invest in rail and clean buses, expand biking and walking infrastructure and shift focus away from projects that encourage car use. This shift to public transit would especially be important in the US, China and India. Read more in the press release below.

GM announces net 220 job increase as Trump visits Michigan

GM announced today that about 900 jobs would be added (or, importantly, retained) ahead of President Trump's arrival in Michigan, where he is expected to discuss his plan to roll back fuel economy standards. The timing of the announcement is almost certainly not coincidental, as appending it to a Trump visit gives it a higher profile and dovetails with the President's jobs agenda. It's less likely the decision itself was made for those reasons, but the free PR boost is a nice bonus. As for those 900 jobs themselves, they aren't all new jobs. The only net gain is approximately 220 jobs at the Romulus Powertrain Plant, which produces the 10-speed automatic transmission that's proliferating through the company's lineup. The 180 jobs at Flint Assembly and 500 jobs at Lansing Delta Township are retained jobs – that is to say, spots the company found for workers who would otherwise have been laid off. By the way, the Flint jobs will help with production of heavy-duty pickups, and the Lansing jobs are to produce the Chevrolet Traverse and Buick Enclave. Finding jobs for manufacturing workers in the auto sector, whether new or retained, is admirable. No matter how GM couches it, the company has created or retained a total of 7,000 jobs this year, and its total reinvestment in US production is around $1 billion. But these decisions are business ones, not political ones – timing the announcements to make them seem inspired by economic policy, or the political situation, is simply smart PR. Related Video: Image Credit: Bill Pugliano/Getty Images Celebrities Government/Legal Buick Cadillac Chevrolet GMC