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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.

GM Recalls 218,000 Chevy Aveo Models Over Fire-Prone Lighting

The recall train keeps on rolling for General Motors. Hot on the heels of its recent 2.4 million-vehicle recall of various models, it's now calling in 218,000 Chevrolet Aveo units from the 2004-2008 model years because they could catch fire. The problem concerns the daytime running light module in the instrument panel. It could overheat, melt and cause a fire. According to GM spokesperson Alan Adler, "We are aware of some fires," and the company "is still investigating." Adler wouldn't comment about how many fires were reported or when the automaker was first aware of this issue because of the ongoing analysis. However, he said the issue has not caused any injuries or fatalities. GM also doesn't have a fix for the problem with the DRL module yet. The company says in its recall statement to the National Highway Traffic Safety Administration that the remedy "is still under development." Adler wasn't sure when it would be ready, but he said Aveo owners would receive notification in the mail "relatively soon." They will receive a second letter later to schedule the repair. In a separate letter about the Aveo's problem to NHTSA (viewable here as a PDF), GM said its Executive Field Action Decision Committee decided to conduct the recall on May 16. Scroll down for the recall report. RECALL Subject : Daytime Running Light Module Overheating Report Receipt Date: MAY 19, 2014 NHTSA Campaign Number: 14V261000 Component(s): Potential Number of Units Affected: 218,000 Manufacturer: General Motors LLC SUMMARY: General Motors is recalling certain model year 2004-2008 Chevrolet Aveo vehicles equipped with daytime running lights (DRL). In the affected vehicles, there may be heat generated within the DRL module located in the center console in the instrument panel, which could melt the DRL module. CONSEQUENCE: If the DRL module melts due to the heat generation, it could cause a vehicle fire. REMEDY: The remedy for this recall campaign is still under development. The manufacturer has not yet provided a notification schedule. Owners may contact General Motors customer service at 1-800-222-1020 (Chevrolet). General Motors recall number for this campaign is 14236. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.

Consumer Reports declares most and least loved cars [w/video]

Consumer Reports is crunching the numbers from its annual owner-satisfaction survey, and part of that process is finding out how attached drivers are to their cars. CR simply asks readers of models up to three years old if they would buy the same vehicle again in light of their entire ownership experience, and tallies the results. After looking at the responses for about 350,000 vehicles, it turns out that people really love a certain California-built, electrically powered luxury sedan. That's right, this year's the overall winner was the Tesla Model S with a whopping 98 percent of owners saying they would purchase another one (the Model S also won this award last year, with 99 percent satisfaction). The Chevrolet Corvette Stingray came in a close second with 95 percent of drivers hoping to park another one in their garage. A few models weren't quite so favored, though. The Nissan Versa Sedan was the least loved model among its owners; a mere 42 percent said that they would purchase another. The aging Jeep Compass didn't do much better, with just 43 percent of drivers willing to buy the softroader again. On average, about 70 percent of owners say they would buy their car again, and only four cars ranked below 50 percent in CR's findings. Check out the video above to see some of the winners and losers in a few of CR's categories. If you're a subscriber, you can check out the full list on its website. Related Gallery Consumer Reports Most Loved Cars 2014 Related Gallery Consumer Reports Least Loved Cars 2014 News Source: Consumer Reports - sub. req., Consumer Reports via YouTube Chevrolet Ford Mazda Mercedes-Benz Porsche Subaru Tesla Ownership Videos car ownership