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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: 2008 Saturn Astra XR 3-Door Hatchback

GM's Saturn brand spent the first part of the 2000s shifting over to vehicles on global corporate platforms, then spent the second half of the decade increasingly flailing for relevance as The General itself struggled to stay upright. By 2008, prospects for Saturn— and the American economy in general— didn't look so great, but that was the first model year for the Saturn-badged Opel Astra in North America. The announcement that the axe would be falling on Saturn came the following year, soon after GM declared Chapter 11 bankruptcy, and so 2009 became the final year for the Saturn Astra. Some MY2010 Saturns were sold (the Sky, Outlook, and Aura), but the Astra shares the dubious honor of the shortest Saturn sales run with the long-forgotten Saturn Relay minivan. For this reason, I keep my junkyard eye open for discarded Astras, and finally found this very clean '08 three-door in a Denver self-service yard last week. The Astra could be purchased with three doors or five, in two very similar trim levels. This car is the three-door, which was available only in semi-high-zoot XR trim. I'm not sure if the Opel Astra got these GM "Mark of Excellence" fender badges, but all American-market 2005-2009 GM vehicles have them (not counting stuff bearing the crypto-GM Suzuki badge). I've got dozens of these badges glued to my garage wall, because why not? Just one engine was available in the Saturn Astra: a 1.8-liter Ecotec four rated at 138 horsepower. The Ecotec has proven to be an unusually reliable engine, but I suspect that this one died in some expensive manner (because the rest of the car looks so nice) and that's why the car is here now. The base transmission in the Astra was a five-on-the-floor manual, and that's what this car has. The four-speed automatic cost an extra $1,325 on an $18,375 car (that's about  $1,765 on a $24,475 car in 2022 dollars), so either the original purchaser of this car preferred three-pedal driving or was just a cheapskate. I haven't seen enough junkyard Astras to know if the manual transmission is very rare in these cars; the five-door I found a few years back had the automatic. Presumably, an American car shopper looking for the European-style driving experience of an Opel might prefer the manual. Built in Antwerp, Belgium! As this was just a rebadged Opel, the Astra did not have the standard GM radio faceplate found in everything from the Chevrolet Equinox to the Saab 9-3.

GM Recalling Another 2.7 Million Vehicles In Five Separate Campaigns

The recalls keep rolling in from General Motors, evidently keen to avoid repeating the mistakes of the ignition-switch debacle and clean house. This time they're all coming at once, with five separate recalls announced together covering approximately 2.7 million vehicles. The largest of the five actions involves over 2.4 million units of the previous-generation Chevrolet Malibu and Malibu Maxx, Pontiac G6 and Saturn Aura in order to fix brake light wiring harness, which have been found to be susceptible to corrosion. The recall is separate from the 56k Aura sedans which GM recently recalled over faulty shift cables, not to mention the previous massive recall of 1.3 million vehicles – some of them the same models – but appears to have resulted from the National Highway Traffic Safety Administration investigation that started with the G6 almost a year ago. The second-largest campaign involves the 2014 Chevy Malibu, specifically those fitted with GM's 2.5-liter engine and stop/start system, approximately 140,000 examples of which has been found to have problematic brakes. The issue does not appear to be connected to the recall of 8k Malibu and Buick LaCrosse sedans (also involving brake woes) which we reported upon last week. Four crashes have been reported in such models, but GM admits it's not yet clear if the problem was a contributing factor in the accidents. A further 112k Corvette models from the 2005-2007 model years are being called in for problems with their low-beam headlamps resulting from a flexing relay control circuit wire that's not meant to bend. GM says it is "aware of several hundred complaints" about this issue, but notes that there have been no reports of related accidents. In addition, over 19k examples of Cadillac CTS from the 2013 and 2014 model years are being recalled over windshield wipers that might not work after a jump start. Finally, GM is also bringing in 477 examples of its 2014 Chevy Silverado, Tahoe and GMC Sierra (though not the Yukon) to fix a problem with a tie rod in its steering rack. As ever, all recall repairs will be performed free of charge, and GM is now estimating that recall-related actions this quarter will result in an estimated $200-million charge against its second-quarter earnings. Read the full announcement from GM below for further details.