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GM isn't liable for punitive damages in ignition switch cases

NEW YORK — A federal appeals court said General Motors is not liable for punitive damages over accidents that occurred after its 2009 bankruptcy and involved vehicles it produced earlier, including vehicles with faulty ignition switches. The 2nd U.S. Circuit Court of Appeals in Manhattan said on Tuesday that the automaker did not agree to contractually assume liability for punitive damages as part of its federally-backed Chapter 11 reorganization. GM filed for bankruptcy in June 2009, and its best assets were transferred to a new Detroit-based company with the same name. The other assets and many liabilities stayed with "Old GM," which is also known as Motors Liquidation Co. Tuesday's 3-0 decision may help GM reduce its ultimate exposure in nationwide litigation over defective ignition switches in several Chevrolet, Pontiac and Saturn models. It is also a defeat for drivers involved in post-bankruptcy accidents, including those who collided with older GM vehicles driven by others, as well as their law firms. The ignition switch defect could cause engine stalls and keep airbags from deploying, and has been linked to 124 deaths. A lawyer for the drivers and their law firms did not immediately respond to requests for comment. GM had no comment. Circuit Judge Dennis Jacobs said GM's agreement to acquire assets "free and clear" of most liabilities excused it from punitive damages claims for Old GM's conduct. He also noted that the judge who oversaw the bankruptcy concluded that the new company could not be liable for claims that the "deeply insolvent" Old GM would never have paid. The decision upheld a May 2018 ruling by U.S. District Judge Jesse Furman in Manhattan, who oversees the ignition switch litigation. Drivers have sought a variety of damages in that litigation, including for declining resale values. GM has recalled more than 2.6 million vehicles since 2014 over ignition switch problems. It has also paid more than $2.6 billion in related penalties and settlements, including $900 million to settle a U.S. Department of Justice criminal case. The case is In re: Motors Liquidation Co, 2nd U.S. Circuit Court of Appeals, No. 18-1940. Government/Legal Chevrolet Pontiac Saturn Safety gm ignition switch

2015 Chevrolet Trax

After the obligatory product presentation for the 2015 Trax, I caught up with Steve Majoros, Chevrolet's director of marketing for crossovers and cars, and asked him to elaborate on which markets his planners believe will be the hot starters for this tiny CUV. Without much hesitation, Majoros began to click off traditional sales havens for Subaru, namely, New England and the snowy bits of the East Coast, Colorado and the Pacific Northwest. That news might not surprise you, but it did me. Perhaps it's something as basic as the Trax's tall-hatchback looks, or the emphasis Chevrolet put on the urban driving cycle during my test in San Diego. But before my chat with Majoros, I'd considered this a crossover pointed at the Millennial city mouse more than his bumpkin cousin. But a closer look had me re-examining the granola cred of Chevy's smallest crossover. Having spent my fair share of time in New England and around New Englanders, I started by mentally listing the Trax's Subaru-like traits: practicality, thrift, all-weather ability and, well, just a dash of ugliness. (I suppose a hatchback needn't always be ugly to sell in Maine, or Boulder or Portland... but a 'distinctive' face doesn't seem to hurt.) After a day of driving through sunny San Diego and its surroundings, I can say that Trax makes an interesting case for itself against the standard bearers of the L.L. Bean set, but I'm less sure of its argument for young urbanites. The Trax looks a lot like an Equinox whose suit shrunk in the wash. Chevy's has downsized its own, rather conservative crossover styling to fit the proportions of the subcompact Trax; to my eyes, it looks a lot like an Equinox whose suit shrunk in the wash. That's fine for offering a cohesive look for the Chevy family of crossovers, but it seems out of step with the rest of the segment. If the Trax's current competitive set were the cast of a high school-based TV show, the Kia Soul would play the lovable nerd, the Nissan Juke perhaps the outsider musician and the Subaru XV Crosstrek the athletic outdoorsy kid. Chevy may see the Trax as the hipster chick wearing intentionally ironic mom jeans, but to me the styling is a little too on the nose; more like an actual grownup trying to hang with the kids. These mom jeans are genuine. Per my earlier point, that quasi-conservative look may be just fast enough for staid New Englanders, but I have a hard time seeing the bluff, big-Bowtied front end playing in Bushwick or Wicker Park.

GM is the latest automaker accused of diesel emissions cheating

Volkswagen and Ram need to make room on the diesel-emissions bench for General Motors. America's largest automaker was accused in a lawsuit on Thursday of rigging hundreds of thousands of diesel trucks with at least three so-called defeat devices to ensure that the trucks would meet federal and state emission standards, even if they generated more pollution in real-world driving. According to the complaint, on-road emissions testing conducted for the plaintiffs found that Duramax-equipped trucks produced NOx pollutants, comprised of nitrogen and oxygen atoms, two to five times higher than legally permitted, and "many times" higher than their gasoline counterparts. The proposed class-action lawsuit was filed in federal court in Detroit on behalf of people who own or lease more than 705,000 Chevrolet Silverado and GMC Sierra pickup trucks fitted with "Duramax" engines from 2011 to 2016 model years. The lawsuit seeks remedies including possible refunds or restitution for lost vehicle value, plus punitive damages. It adds to legal problems for Detroit-based GM, which has already paid about $2.5 billion in penalties and settlements over faulty ignition switches linked to 124 deaths. GM joins at least five automakers whose diesel emissions have been scrutinized by regulators or consumers. They include VW, which has admitted to cheating; Mercedes-Benz parent Daimler; Fiat Chrysler Automobiles, Peugeot and Renault. GM spokesman Dan Flores called the claims "baseless," and said the trucks comply with US Environmental Protection Agency emissions standards and California's own tough standards. Shares of GM were down 69 cents, or 2.1 percent, at $32.50 in afternoon trading, after earlier falling to $31.93. The GM lawsuit was filed by several law firms, including Hagens Berman Sobol Shapiro, which helped reach multibillion-dollar settlements with VW on behalf of drivers and dealers. The case is Fenner et al v General Motors LLC et al, US District Court, Eastern District of Michigan, No. 17-11661. The named plaintiffs are Andrei Fenner of Mountain View, California and Joshua Herman of Sulphur, Louisiana. They said they would not have bought their respective 2011 Sierra and 2016 Silverado trucks, or would have paid less for them, had they known about the alleged rigging. Joseph Spak, an RBC Capital Markets analyst, in a research report said "negative publicity" from the lawsuit could drive buyers to trucks from Ford or even Fiat Chrysler's Ram.