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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

Airbag recall adds 85k Pontiac Vibes to tally

The repairs needed for the faulty airbag inflators supplied by Takata continue to expand. Toyota initially announced a recall of 766,300 vehicles equipped with the bad part on June 11 as a followup to a campaign from 2013. Soon after, the National Highway Traffic Safety Administration opened a preliminary evaluation into five automakers who also used the component in their models. Now, NHTSA has released the official announcement of the latest Toyota recall listing 844,277 affected cars, including the newly added 2003-2004 Pontiac Vibe.
While NHTSA's document didn't include a model-by-model breakdown, General Motors spokesperson Alan Adler estimated to Autoblog that roughly 85,000 Vibes in the US would be covered under the latest recall. Like the rest of the affected models, the airbag inflator could rupture in a crash causing the bag not to work correctly, possibly spraying metal fragments at the occupant.
Toyota spokesperson Cindy Knight told Autoblog that the reason for the disparity between the earlier press release and NHTSA document was that Toyota was continuing to comb through VINs to create a list of affected vehicles. The original number was an estimate of that process at the time. Scroll down to the recall report from NHTSA.

Junkyard Gem: 2006 Pontiac Solstice

The debut of the Pontiac Solstice, back in 2005 for the 2006 model year, stirred up much excitement in the automotive world. Sales were brisk at first, and then they weren't so great… and then Pontiac itself went under The General's cost-cutting axe. One thing I have learned during my junkyard travels is that even sought-after sports cars eventually reach a point at which they start showing up in the big self-service junkyards. For example, the BMW Z3 began appearing in such yards about five years ago, along with the Audi TT. While the Honda S2000 still appears to be exempt from this process, today's Junkyard Gem shows that the time has now come for the Pontiac Solstice/Saturn Sky. The first Z3s and TTs I saw in the U-Wrench-type yards were crash victims, not worth fixing, and that's the case with this Solstice. In a few more years, I'll start seeing the occasional Solstice/Sky discarded due to general worn-outness. Someone grabbed all the undented front body parts and the transmission (these items, presumably, being valuable), but no junkyard shoppers have felt like pulling the non-turbo 2.0-liter Ecotec. The interior seems dirty, probably from exposure to the elements while sitting outdoors in this Colorado Springs wrecking yard, but not in bad shape otherwise. Perhaps the car's owner celebrated a return from Iraq with the purchase of a sporty new Pontiac, 13 years ago. These cars have an enthusiastic following, so I wasn't expecting to see a junked one so soon after production ceased. I felt the same way about the Chrysler Crossfire, however, and I found two of those last year. What's next, a 2002-2005 Thunderbird? This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Such optimism!