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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 nixes fleet-only Chevy Captiva Sport

Well, guys, it looks like Saturn is finally dead in the United States once and for all. According to Automotive News, Chevrolet has discontinued production of its fleet-only Captiva Sport - a rebadged Saturn Vue - after three years on the market. The very last US-spec Captiva Sport was built in Mexico in August. GM will still produce the vehicle for sale in the Mexican market, as well as for export.
GM initially offered the Captiva Sport for rental fleets as a way to free up capacity for the sightly larger Chevy Equinox and GMC Terrain crossovers, which, according to AN, had been in short supply. The Captiva Sport also did a nice job protecting the resale values of its other similar-sized CUVs because they didn't have to play in the fleet market. But with Chevrolet preparing to launch its subcompact Trax CUV in the US, the automaker will soon have a clear, three-tier crossover lineup without the Captiva Sport. The Trax fills out the bottom end, followed by the Equinox and the seven-passenger Traverse.
For now, renters seeking a taste of 'Classic GM' will have to whet their appetites with the fullsize Impala Limited.

GM expands ignition switch recall to over 1.3 million cars amid climbing death toll

588,000 Saturn Sky, Saturn Ion, Pontiac Solstice and Chevy HHR models join the 778,000 cars already being recalled.
General Motors has announced a massive expansion of a 778,000-unit recall we told you about two weeks ago, doubling not only the total number of cars affected but expanding the recall beyond Chevrolet Cobalt and Pontiac G5 models previously mentioned. The recall originally centered around ignition switches that could slip out of the "run" position if jostled or if any weight was applied to the key in the cylinder.