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General Motors Recalls Nearly 780,000 Cars To Fix Deadly Problem

General Motors is recalling nearly 780,000 compact cars in North America because the engines can shut down unexpectedly and cause crashes. The company says six people have been killed in crashes related to the problem. The recall affects Chevrolet Cobalts and Pontiac G5s from the 2005 through 2007 model years. U.S. safety regulators say the weight of the key ring and rough roads can move the ignition switch out of the run position, cutting the engine and electricity. If that happens, air bags may not work. GM says there have been 22 crashes from the problem. All happened at high speeds. Dealers will replace the ignition switch for free. GM says owners should remove nonessential items from key rings until the problem is fixed. Related Gallery Chevy Impala Earns Highest Accolades From Consumer Reports Recalls Chevrolet GM Pontiac Cobalt

Thanks for keeping us on our toes, Detroit Auto Show [w/poll]

Here at Autoblog, we love unexpected debuts at auto shows – and judging by our Detroit Auto Show comments and traffic, you do, too. Surprise reveals have been fewer and farther between in recent years with so many ways for vehicles to be teased or leak out, but this week's show has been a revelation. More to the point, it's been a series of revelations, with automakers from around the globe successfully delivering a brace of concept and production surprises. It's made our jobs a lot more exciting and challenging this week, and even though it's actually more work to react and run-and-gun when the sheet is pulled on a surprise reveal than it is to publish an already-written embargoed story, we've had more fun covering this show for you than any domestic show in memory. We hope you've enjoyed the surprises along with us. To that end, borrowing the words of an unnamed automaker PR flack, we'd like to thank the following automakers for enduring "mountain of antacids" and that "creeping sense of paranoia" necessary to keeping ones' wares totally under wraps until the sheets are pulled off the sheetmetal: Buick Avenir concept Chevrolet Bolt concept Ford GT concept Ford Mustang Shelby GT350R Ford F-150 SVT Raptor Hyundai HCD-15 Santa Cruz concept And while we're at it, we'd like to throw in an shout-out to Detroit's substantially revised and revitalized Cobo Center, and in particular, the redone Michelin media center, which is arguably the single best accommodations for writing show stories that we've encountered on the entire international circuit. Well done, everyone. Thank you, and keep the surprises coming. Auto News Detroit Auto Show Buick Chevrolet Ford Hyundai Volvo 2015 Detroit Auto Show

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.