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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.

Weekly Recap: Tesla loses money, still dominates the news

Some people get an inordinate amount of attention. In politics, it's Donald Trump. In football, it's Jim Harbaugh. And in the auto world, it's Elon Musk and his always-fascinating electric car company, Tesla Motors. General Motors is spending $877 million to upgrade a factory. So what! US auto sales are up. Who cares? Tesla has a metal snake that will recharge your car! So was the week in Tesla – er, the industry. Snarkiness aside, Tesla did dominate the news cycle, led by the announcement the company lost $184 million in the second quarter. Tesla also said it expects to deliver between 50,000 and 55,000 vehicles this year, and is preparing for a full launch of the Model X crossover in September. Musk also made news during the earnings call by simply not answering a question about ride sharing, leading to speculation Tesla could be considering its own operation. While the financials were the arguably the most important company news, reports of a Model S cyber hacking were more compelling fodder for Tesla followers. Researchers were able to attack the sedan and bring it to a stop, though they required access to the car first. Tesla says it already has deployed a remedy for the situation. On a lighter note, Tesla published a video of its metal charger prototype that autonomously uncoils like a snake to power up the company's vehicles, provoking plenty of humorous comments and comparisons. Watch it and decide for yourself. While some of this might seem trivial, much of Tesla's recent attention has been warranted. It's the first startup US automaker in decades to launch from nothing and actually gain traction in the market. Sure, Musk is a lightning rod and Tesla always seems to be in the spotlight. But amid all of the publicity, it easy to lose sight of the new reality: Tesla is a force. OTHER NEWS & NOTES 2016 Chevy Volt lights up 106 MPGe The Chevy Volt's vitals are looking healthier for 2016. The second-generation plug-in hybrid racks up a gaudy 106 miles per gallon equivalent, which is an increase of eight MPGe from the 2015 model. The new Volt can travel 53 miles on electricity, a significant jump from the 2015 Volt's 38-mile range. The new car also has a 420-mile total range when factoring in the capability of the gasoline engine, which is 40 miles greater than the current car offers.

Pony-car sales war: Mustang vs. Camaro vs. Challenger [UPDATE]

Update: An earlier version of this story misstated the 2015 Mustang's weight when compared with previous models. Additionally, we have added comments from Chevrolet in the text. The Ford Mustang has blown past the Chevy Camaro as America's best-selling pony car, and in June, it wasn't even close. The 'Stang outsold the Camaro 11,719 to 8,611 cars. The Camaro remained ahead of the Dodge Challenger, which sold 6,845 units. Even though the Camaro did post an 11.5-percent sales improvement in June, the competition is arguably stronger than at anytime since the 1970s muscle-car era. The Mustang's sales leapt a whopping 53.6 percent, while the Challenger saw a gain of 56 percent. Several factors are weighing down Camaro sales, including its lame duck status. Chevy is launching a new generation of the Camaro this year that's more than 200 pounds lighter, offers a new turbo four-cylinder engine option, and has a nicer interior than the outgoing model. Put simply: wait a few months and you can get a better car. It's also unlikely Chevy will jack up the price much, as it's historically kept the Camaro within reach of everyday enthusiasts. While Chevy fans wait in anticipation for their new sports car, Ford and Dodge have downshifted. The new Mustang, which went on sale last year, is faster and more sophisticated than its predecessor. It also offers a 2.3-liter EcoBoost four-cylinder, which Ford has credited for the Mustang's recent uptick and makes up 36 percent of the car's sales, Ford analyst Erich Merkle said. View 17 Photos June's performance allowed the Mustang to widen its sales gap with the Camaro this year. Through the first five months, Ford sold 68,290 Mustangs, a 54.4-percent increased compared with 2014. Chevy sold 42,593 Camaros, an 8.7-percent decrease. The Challenger – long the No. 3 pony car in sales volume – has seen its sales surge 41 percent this year to 37,011 units. Spokesman Monte Doran said Chevy expected that 2015 would be a "relatively soft year" for the Camaro. "Mustang is taking advantage of years' worth of pent-up demand for an independent rear suspension," he said. "When Camaro introduced an IRS, in 2009, it helped make us the best-selling performance car in America.