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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

Junkyard Gem: 1989 Pontiac 6000 STE AWD

During the middle to late 1980s, General Motors made a big push to grab back some of the sales swiped by makers of European luxury machinery during the previous decade. Around the top of the prestige pyramid, there was the Turin/Hamtramck-built Cadillac Allante taking aim at the Mercedes-Benz 560SEC and the super high-tech Buick Reatta trying to seduce away BMW and Jaguar shoppers; even the Riviera offered a futuristic touchscreen computer sorely lacking in anything out of Stuttgart or Bavaria. The General had a plan to take on the smaller German sporty sedans, too, and Pontiac of the "We Build Excitement" era offered a midsize sedan packed with modern hardware at a great price: the 6000 STE. Here's one of the rarest 6000 STEs of them all, an all-wheel-drive-equipped '89 found in a Denver-area yard last week. Any 6000 STE is extremely hard to find today; when I wrote about a front-wheel-drive 1987 6000 STE back in 2018, desperate owners of these cars filled my inbox with requests — sometimes demands —  for parts that continue to this day. Many of them pleaded with me to help them find an all-wheel-drive version, and now I have managed to find one at Colorado Auto & Parts in Englewood, just south of Denver (in fact, the same yard at which I shot the '87). You may recall CAP as the old-school yard whose owners built the amazing airplane-engined 1939 Plymouth pickup a few years back.  The all-wheel-drive system on the 6000 STE was introduced for the 1988 model year, and it became standard equipment on the 1989 STE. At this time, the automotive industry had taken note of the success of the idiot-proof all-wheel-drive systems offered by AMC and Audi/Volkswagen; Toyota began selling Americans all-wheel-drive Camrys, Celicas, and Corollas, while Ford offered the Tempo and Topaz with optional AWD and Subaru was just beginning to make the switch from manually-selected four-wheel-drive to genuine all-wheel-drive around that time (it took a few more years for everyone to standardize on the 4WD/AWD terminology we use today, though). The 6000 STE AWD was intended to compete with such all-wheel-drive-equipped sedans as the Audi 80 ($23,610), Audi 90 ($28,840), and BMW 325iX ($30,750); its $22,599 price tag (about $50,700 in 2021 dollars) certainly made it seem like a bargain compared to those cars. In addition to the all-wheel-drive system, 1989 6000 STE owners got a digital instrument panel and more switches and buttons than the Space Shuttle.

Saturn Vue ignition switch leads to new group of GM recalls totaling 312k

General Motors has another spate of recalls to announce. This time they cover 312,280 vehicles worldwide, including 269,041 of in the US, in a total of six campaigns. In 2014, the automaker has recalled 29,079,765 vehicles worldwide, with 25,754,356 of those in the US.
The largest among them covers 215,243 units of the Saturn Vue from 2002-2004 model years worldwide, 202,115 in the US. It's possible for the for the key to be removed even when the ignition isn't in the OFF position. The company knows of two crashes and one injury caused by this problem. Dealers are checking the parts and replacing the ignition cylinder and key set, if necessary.
Next is 72,826 models worldwide (48,059 vehicles in the US) of the 2013 Cadillac ATS four-door sedan, 2013 Buick Encore and 2013 Chevy Trax in Canada. It's possible that the for lap belt pretensioner to retract but not to lock, which could increase occupant movement during a crash. Both front, outboard lap belt pretensioners are being replaced, and a stop-sale is in effect on unsold models until the problem is repaired. There are no known crashes or injuries, though.