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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: 2007 Saturn Sky

The Pontiac Division didn't have long to live when the Solstice first appeared in 2005 as a 2006 model, and Saturn's head was inching toward the chopping block at about the same rate. Still, optimism reigned — at least, it did until the global economy fell apart — and so Saturn Dealers got a rebadged version of the Solstice to sell: the Sky. Available for just the 2007 through 2010 model years, slightly more than 34,000 Skies rolled out of showrooms before the doors were nailed shut. Here's one of those rare cars, found in a Denver-area self-service yard a few weeks ago. I've found a handful of discarded Solstices in car graveyards during the past few years, mostly with crash damage. This Sky endured a medium-hard impact in the right front corner, which sent it to this place. The 177-horsepower, 2.4-liter Ecotec still resides under the battered hood. The Sky Redline version had a turbocharged engine rated at 260 horses; we can assume that such an engine would be yanked and purchased by the first junkyard shopper that realized what it was. The base transmission in the Sky was an Aisin five-speed manual, but this car has the optional five-speed automatic.  The Sky had its own nose and some different badging, but otherwise didn't differ much from the Solstice.  For the South Korean market, the Sky got Daewoo G2X badges and was advertised as the ideal vehicle for high-speed chases through Seoul traffic. The same car went to Europe as the Opel GT. Sadly, GM ran out of money to make right-hand-drive Skies, so we never got to witness Holden or Vauxhall versions. Here's Bob Lutz describing the new Sky. Lutz really hated car names molded into plastic bumper covers, so he takes great care here to describe the genuine glued-on emblems. Related Video:

Junkyard Gem: 2007 Pontiac G6 GT Convertible

GM's Pontiac Division sold its first convertibles during the 1927 model year (just a year after the division's creation), then proceeded to offer memorable drop-tops for most of the following 83 years. The best-selling convertible to bear Pontiac badges during our current century was the retractable-hardtop-equipped G6, available from the G6's introduction in 2006 through the second-to-last model year of 2009 (the Sunfire convertible was available just through 2000, while the Firebird convertible vanished with the demise of the slow-selling Firebird itself after 2002). Here's one of those G6 GT convertibles, found in a Denver-region boneyard after a crash ended its driving career. Mashed right front, popped airbags. This sort of damage might have been worth repairing in 2009, but not today. The 2007 G6 was available as a coupe, sedan, or convertible. All the convertibles had the GT trim level and the 3.5-liter V6 and its 224 horsepower. The MSRP on this car was $28,750 (about $42,325 in 2022 dollars), making it the most expensive G6. The power hardtop roof folded up into the trunk, leaving 1.8 cubic feet of trunk storage space with the top down. This Karmann-designed roof system made the interior much quieter than that of a traditional soft-top convertible. All G6s were built at Orion Assembly in Michigan, where Chevy Bolts are born today. The G6 was built through the 2010 model year, making it one of the very last Pontiac models (the Vibe also made it to 2010, though it was really a Toyota Matrix). In hindsight, 2007 turned out to be an ominous year for GM.