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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 3.6 million vehicles for airbag-software problems

The Basics: General Motors is recalling 3.64 million vehicles across its lineup for an airbag-related issue. The recall covers the 2014-2015 Buick LaCrosse, Chevrolet SS, and Spark EV; 2014-2017 Chevrolet Corvette, Trax, Caprice PPV, Silverado 1500, Buick Encore, and GMC Sierra 1500; and 2015-2017 Chevrolet Tahoe, Suburban, Silverado HD, GMC Yukon, Yukon XL, Sierra HD, Cadillac Escalade, and Escalade ESV. The Problem: Affected vehicles have a sensing and diagnostic module that controls the airbags and seat-belt pretensioners. The software it uses has a defect that can prompt the module to run a diagnostic test under specific driving conditions, which will also deactivate the front airbags and pretensioners. This means that it would be possible for those safety systems to not activate in a crash, potentially leading to injury or death. Injuries/Deaths: General Motors began an investigation that led to the recall after a 2014 Silverado was involved in a crash in which the airbags did not deploy. No information was given as to injuries or deaths. The Fix: Owners can bring their vehicles to a local General Motors dealer where a software update will be installed to fix the issue. The fix will be free of charge. If you own one: General Motors will contact owners of affected cars, and owners can check whether their vehicles are affected by visiting entering their vehicle identification numbers at either the GM Owner Center website or the NHTSA website. Owners can then schedule a time to have the update installed. Related Video:

GM investing $167m in Spring Hill for new midsize vehicles

General Motors has announced a large investment in its Spring Hill, Tennessee facility. The former home of Saturn production will be getting a $167 million addition to a previously announced $183 million, to cover a pair of new midsize vehicles. The investment is expected to create 1,800 jobs at the factory.
That $350 million is being divvied up for a pair of programs at Spring Hill. The first will take the bulk of the money ($223 million) and create 1,000 of the 1,800 jobs, while the other will take the remaining $127 million and generate the leftover 800 positions. But GM says the investment will cover "midsize vehicle programs." So what could they be?
The leading candidate in our minds is a new crossover for Buick, called the Anthem, that will slot between the Encore and Enclave, but will be slightly smaller than the Equinox and Terrain. As we've explained, the new model will likely be the first product to sport GM's new D2UX platform, which will eventually replace both the Delta and Theta platforms. Spring Hill is already building the Equinox, so there could be some credence to this theory.