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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

GM recalls 61k more vehicles in three campaigns

Following a stop-delivery order for its new midsize trucks and a rash of recent recalls, General Motors is issuing three more campaigns covering 60,575 vehicles in North America with 57,182 of them in the US. As of October 1, the automaker has issued a total of 74 recalls (see the ridiculously long chart to the right) this year covering 26,495,070 units in the US.
The largest campaign covers 46,873 examples in the US of the 2008-2009 Pontiac G8 and 2011-2013 Chevrolet Caprice Police Patrol Vehicle imported from Australia. It's possible for the driver's knee to hit the key and make it move from the "Run" to "ACC" position while driving. GM says its Holden division is developing a fixed-blade key that's supposed to fix the problem by only allowing it to rotate toward the "On" position. There has been one crash caused by this fault but no injuries or fatalities.
The second recall is for 10,005 units of the 2004-2007 Cadillac CTS-V and 2006-2007 Cadillac STS-V because "the fuel pump module electrical terminal may overheat." This can cause a flange to melt and allow the pump to leak fuel. GM specifies that the remedy for the CTS-V is replacing the fuel module and fuel tank jumper harness, but it doesn't specify how the STS-V is being repaired.

GM's got 107 problems and NHTSA's No. 1

General Motors' problems with its recall of roughly 1.6-million vehicles continue to mount. Now that it has emerged that GM knew about the problem since at least 2004 but waited to recall vehicles until February 2014, regulators at the National Highway Traffic Safety Administration have begun a much deeper investigation. NHTSA has sent a 27-page survey to GM that includes 107 questions about the timeline of what led up to the recall, and it has until April 3 to reply. This isn't a simple, multiple-choice test. Automotive News believes that hundreds of pages could be required to answer some of the queries. NHTSA says that it is still investigating GM's response to the recall. "We are a data-driven organization, and we will take whatever action is appropriate based on where our findings lead us," said NHTSA in a statement on its website. If found liable, the automaker could face a fine as high as $35 million and even possible criminal charges, according to Bloomberg. NHTSA's questions include a detailed explanation of GM's examination process; how it will improve the process; why a planned redesign of the cars' key in 2005 wasn't implemented; and specific data on each complaint it received. According to Bloomberg, NHTSA also has records that show the company had a meeting with regulators to discuss the airbag failure in a Chevrolet Cobalt in 2007. New GM CEO Mary Barra has also hired an outside law firm to conduct an independent investigation about what happened. It will include questioning company employees who were involved with the process from the start. The recall stems from faulty ignition switches that shut off the car while driving, and if it occurs the airbags deactivate. Thirteen deaths and 23 crashes have been caused by the problem, according to Bloomberg. If you would like to peruse NHTSA's entire questionnaire for GM, it can be viewed here. News Source: Automotive News – sub. req., National Highway Traffic Safety Administration, BloombergImage Credit: Carlos Osorio / AP / dapd Government/Legal Recalls GM Pontiac Saturn Safety pontiac solstice saturn ion saturn sky pontiac g5