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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

Michigan floods from breached dams consume Pontiac Fiero collection

“WeÂ’ve never had an event like this,” Michigan's city manager Brad Kaye said in a Detroit News story. "What we're looking at is an event that is the equivalent of a 500-year flood." Kaye is referencing the catastrophic flood that occurred in central Michigan this week after heavy rainfall was compounded by two breached dams on the Tittabawassee River. Reports say the flooding forced evacuation of up to 10,000 residents, swallowed entire towns, and destroyed thousands of properties. No casualties have been reported, according to the Detroit Free Press, but car enthusiasts will be sad to learn a Pontiac Fiero shop and collection called Forever Fieros was decimated by the natural disaster. The Tittabawassee River is located about two hours, or roughly 140 miles, north of Detroit. It starts 20-30 miles further north and flows southeast as a tributary to the Saginaw Bay Watershed. Along the way, the Tittabawassee is held up by several dams, including the Edenville dam that failed and the Sanford dam that was breached during torrential downpours. According to NPR, the federal government took away the Edenville dam's license in 2018 and suggested it could not last through a major flood. Unfortunately, that prediction was proven accurate.  Forever Fieros is located in Sanford, Michigan, which is just below Sanford Lake, which is created by the Sanford dam. So when the Edenville dam north of Sanford broke, water from Wixom Lake flooded Sanford Lake, and a berm next to the Sanford dam was overwhelmed, according to MLive. Technically the dam did not fail, but the end result was the same: an entire town underwater. The Tittabawassee reportedly crested at 35 feet, or 10 feet above flood level and 1.1 feet higher than the previous record set in 1986. According to The Drive, the man in charge of Forever Fieros, Tim Evans, had time to attempt to save his vehicles from floodwater. He reportedly moved about 12 cars to a street that doesn't typically flood, but the water level was simply too high for that to matter. A floating pole barn also reportedly struck and damaged the  Forever Fieros building.  Worsening the situation is the fact that Evans was planning to hold an auction to sell many of the Fieros. As seen on Industrial Bid, he planned to sell 12 Fieros, Fiero GTs and a Fiero Formula, ranging from 1984 through 1988. The lots included a 1984 pace car, a Lamborghini Countach kit car, and a Fiero Cosworth Pontiac Super Duty 16-valve DOHC engine.

Junkyard Gem: 1992 Pontiac Firebird

Last spring, this series featured a 1992 Chevrolet Camaro RS in a Northern California junkyard, an example of the final model year for the highly successful third-generation GM F-Body. On a later visit to that yard, I spotted the Pontiac sibling to that car, a Firebird that was born the same year at the same Southern California factory. When the Chevrolet Division introduced the first Camaro as a 1967 model, the Pontiac Division got its own version of the F-Body called the Firebird. While the two cars were built on the same chassis and looked very similar, the first-generation Camaros got Chevrolet engines while their Firebird colleagues got Pontiac engines (including the innovative SOHC straight-six). The 1970-1981 second-generation Firebirds still had some Pontiac-only engines, but Chevrolet and Oldsmobile power crept under some hoods during that period. The third-generation Firebirds first appeared as 1982 models, and they drew from near-identical stockpiles of GM running gear (including the distinctly agricultural Iron Duke four-banger, which could be considered a Pontiac-derived engine). When the Camaro got the axe after 2002, the Firebird's neck was put on the same chopping block. When the Camaro returned for 2010, the Pontiac brand was sputtering to an agonized halt during its final year and there was no chance of the Firebird's return. This car is a fairly ordinary coupe, though it does have the mid-grade 205-horsepower 5.0-liter Chevrolet small-block V8 instead of the base 140-horse 3.1-liter V6. A 5.7-liter small-block was available as well. A five-speed manual transmission was base equipment, but few Americans wanted a three-pedal setup by the early 1990s. This car has the optional four-speed automatic. The MSRP with 5.0 engine, automatic transmission and air conditioning (which this car has) started at $14,304. That's about $31,868 in 2023 dollars. It was built at Van Nuys Assembly in the San Fernando Valley of Los Angeles County. By the dawn of the 1990s, the Camaros and Firebirds made at Van Nuys Assembly had become known as the worst-built GM cars made in North America, and the plant was shut down forever soon after this car was built. Today, a shopping mall lives where the factory once stood. This car managed to drive more than 150,000 miles during its life, so it beat the odds. The thrid-gen F-Body was pretty antiquated by the early 1990s, but the fourth-gen cars handled better and looked up-to-date for the era.