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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

New GM subcompact SUV spied, could be a Chevy or GMC

GM's pair of subcompact crossovers have been trundling along for a while now. The Buick Encore was the first for Americans in the 2013 model year, and the Chevy Trax that was based on the Encore (an encore of the Encore, if you will) arrived for the 2015 model year. Each has undergone a mild update, but these spy photos could indicate their replacements are in the works. Or not. For starters, we can't be sure which GM brand this new SUV is destined for. Though the timing and its flowing lines could indicate Buick, the thick horizontal bars visible in the grille would indicate otherwise. The next Encore being at least related to this is at least a possibility. Making the case for GMC are those thick grille bars, the fact that it extends far below the lights, and may even rise above them, similar to the Acadia. And that rising beltline isn't that different from that of the Acadia. Arguing against the GMC idea is the Encore, which is almost always sold in GMC-Buick combo dealers. Much as the Acadia was made smaller to eliminate confusion and in-house competition with the Enclave, it's hard to see GM opting to resurrect such an issue at the bottom end of the SUV market. That means we're leaning toward this little SUV wearing a Chevy bowtie. The split grille with a large lower section and small upper section is the brand's current design language, as seen on the new Malibus and Cruzes. The shape is vaguely Equinox-like. And like Buick, Chevy also has a subcompact crossover ready for replacement: the Trax. Now, our photographer reports he's seen another subcompact testing that has Blazer design cues, but in this crossover-hungry market, we wouldn't be surprised if two similarly sized but differently styled Chevy crossovers make the grade. It's a strategy that's working pretty well for Jeep. We'll no doubt be seeing more of these disguised test vehicles milling about the country in the coming months, so perhaps we'll eventually get a better idea of what this is before more official information starts trickling out within one or two years. Related Video: Featured Gallery GM Subcompact Crossover spy shots View 10 Photos Image Credit: SpiedBilde Spy Photos Buick Chevrolet GM GMC Crossover SUV buick encore chevy trax

Porsche wins the 2015 24 Hours of Le Mans

The question going into this year's 24 Hours of Le Mans was whether or not the Porsche 919 Hybrid would be able to combine its qualifying pace with race reliability. After battling neck-and-neck with Audi's R18 for most of the race, the answer is a resounding yes. Not only did Porsche drivers climb the first two spots on the podium, they did so without any major mishaps on track. This win is the first overall trophy for Porsche since 1998. Audi previously won the last five races, and 13 of the last 15. Corvette also returned to the winner's circle, with the No. 64 C7.R taking winning the GTE Pro division. The victory is the first class win for Corvette since 2011. KCMG won the LMP2 class in ninth overall. With 45 minutes to go the No. 98 Aston Martin crashed out of first place in GTE Amateur, giving the class win to SMP Racing's Ferrari and second place to the Patrick Dempsey Racing Porsche 911 RSR. For the full list of official results, click here. The GTE Pro class proved to be just as exciting as the P1 class, with a four-way battle for first after four hours into the race. For most of the race, the battle at the top went back and forth between the two German manufacturers. An tire puncture in the No. 7 Audi gave up the lead to Porsche, and moments later a crash forced the No. 8 into the garage. But a three-minute replacement of the front and rear bodywork kept the Audi in contention. As the race wore into the night, Porsche maintained a slightly faster pace than Audi. Nick Tandy took the lead on Lap 253 early Sunday morning, and car No. 19 never gave up the top position. The win is the first for all three drivers of the No. 19 – Nico Hulkenberg, Earl Bamber, and Nick Tandy. A lap behind in second was the No. 17 Porsche. The Audis fought reliability problems late in the race but still finished third with the No. 7 R18. The GTE Pro class proved to be just as exciting as the P1 class, with a four-way battle for first after four hours into the race. As the Aston Martin cars dropped away, the lone Corvette Racing entry took over, followed by a charging AF Corse team Ferrari 458 Italia. The Corvette and Ferrari continued to trade places in the final hours until gearbox trouble forced the No. 51 Ferrari out of contention. It was eventually passed by the other AF Corse car, No. 71. Nissan experienced all the pain of a first-year effort with its front-wheel-drive GT-R LM Nismo.