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Found 48 results

  1. One of the groups that haven't been able to take any legal action against General Motors over the faulty ignition switch were those who bought the affected vehicles before the company announced bankruptcy in 2009. Last year, a bankruptcy judge said that New GM was shielded from liabiliites over the actions taken by Old GM. But today, the U.S. Second Circuit Court of Appeals in Manhattan reversed that decision. In the ruling, the court stated that New GM must face some of the claims from owners that arose from their actions before their bankruptcy. “We are reviewing the ruling and its impact. Even if some claims are ultimately allowed to proceed, the plaintiffs must still prove their cases," said GM spokesman Jim Cain in an email to the Wall Street Journal. This decision could expose GM to additional costs as it tries to move away from this mess. According to the ruling, the protection given to GM shielded them from up to $10 billion of liability claims. Source: Automotive News (Subscription Required), Wall Street Journal (Subscription Required)
  2. One of the groups that haven't been able to take any legal action against General Motors over the faulty ignition switch were those who bought the affected vehicles before the company announced bankruptcy in 2009. Last year, a bankruptcy judge said that New GM was shielded from liabiliites over the actions taken by Old GM. But today, the U.S. Second Circuit Court of Appeals in Manhattan reversed that decision. In the ruling, the court stated that New GM must face some of the claims from owners that arose from their actions before their bankruptcy. “We are reviewing the ruling and its impact. Even if some claims are ultimately allowed to proceed, the plaintiffs must still prove their cases," said GM spokesman Jim Cain in an email to the Wall Street Journal. This decision could expose GM to additional costs as it tries to move away from this mess. According to the ruling, the protection given to GM shielded them from up to $10 billion of liability claims. Source: Automotive News (Subscription Required), Wall Street Journal (Subscription Required) View full article
  3. The first bellwether trial against General Motors over the faulty ignition switch has come to abrupt end. The plaintiff, Robert Scheuer has voluntarily dismissed his lawsuit against the automaker according to a filing in Manhattan federal court today. Scheuer accused GM of concealing a defect in the ignition switch that caused the airbags in his 2003 Saturn Ion to not deploy when he crashed into two trees in Oklahoma in May 2014. The accident caused injuries to Scheuer's back and neck. As we reported in December, GM tried to dismiss the case. However, U.S. District Judge Jesse Furman said the plaintiff had provided sufficient evidence to bring the case to trial. So why was the case dismissed? To understand fully, we need to look at one of the claims made by Scheuer. He claims the crash caused memory loss and, in turn, caused him to misplace a $49,500 check for a down payment on a house in Tulsa, OK. This caused Scherer's family to be evicted from the house. But paperwork filed by GM's lawyers earlier this week tell a much different story. They have found evidence that Scheuer committed check fraud when buying the house. A real estate agent found Scheuer faked a check stub totaling $441,430.72 from his federal government retirement account as a “proof of funds”. The check stub originally totaled $430.72 before the changes took place. GM lawyer Richard Godfrey said in the filing suggests that Scheuer "misled his own counsel, as well as the court and the jury.” GM asked Judge Jesse Furman to present the evidence and bring two witnesses; the real estate agent and a forensic technology expert. “We are assessing GM’s allegations about a situation we were unaware of,” Robert Hilliard, the lawyer representing Scheuer told Bloomberg earlier this week. On Thursday, Furman granted GM permission to present this new evidence to the jury. Furman also said the new evidence would be “devastating,” making the suit “almost worthless as a bellwether case.” Furman urged the two parties to consider dismissing the case. “The apparent lies the plaintiff and his wife told the jury ended the trial early, and we are pleased that the case is over without any payment whatsoever to Mr. Scheuer,” GM spokesman Jim Cain said in a statement. Scheuer and his wife have hired criminal defense lawyers. The dismissal of this case is unlikely to affect other cases against. What it will do is make it slightly harder to determine the value of similar claims. Source: Bloomberg (2), Reuters View full article
  4. William Maley

    First GM Ignition Switch Trial Is Dismissed

    The first bellwether trial against General Motors over the faulty ignition switch has come to abrupt end. The plaintiff, Robert Scheuer has voluntarily dismissed his lawsuit against the automaker according to a filing in Manhattan federal court today. Scheuer accused GM of concealing a defect in the ignition switch that caused the airbags in his 2003 Saturn Ion to not deploy when he crashed into two trees in Oklahoma in May 2014. The accident caused injuries to Scheuer's back and neck. As we reported in December, GM tried to dismiss the case. However, U.S. District Judge Jesse Furman said the plaintiff had provided sufficient evidence to bring the case to trial. So why was the case dismissed? To understand fully, we need to look at one of the claims made by Scheuer. He claims the crash caused memory loss and, in turn, caused him to misplace a $49,500 check for a down payment on a house in Tulsa, OK. This caused Scherer's family to be evicted from the house. But paperwork filed by GM's lawyers earlier this week tell a much different story. They have found evidence that Scheuer committed check fraud when buying the house. A real estate agent found Scheuer faked a check stub totaling $441,430.72 from his federal government retirement account as a “proof of funds”. The check stub originally totaled $430.72 before the changes took place. GM lawyer Richard Godfrey said in the filing suggests that Scheuer "misled his own counsel, as well as the court and the jury.” GM asked Judge Jesse Furman to present the evidence and bring two witnesses; the real estate agent and a forensic technology expert. “We are assessing GM’s allegations about a situation we were unaware of,” Robert Hilliard, the lawyer representing Scheuer told Bloomberg earlier this week. On Thursday, Furman granted GM permission to present this new evidence to the jury. Furman also said the new evidence would be “devastating,” making the suit “almost worthless as a bellwether case.” Furman urged the two parties to consider dismissing the case. “The apparent lies the plaintiff and his wife told the jury ended the trial early, and we are pleased that the case is over without any payment whatsoever to Mr. Scheuer,” GM spokesman Jim Cain said in a statement. Scheuer and his wife have hired criminal defense lawyers. The dismissal of this case is unlikely to affect other cases against. What it will do is make it slightly harder to determine the value of similar claims. Source: Bloomberg (2), Reuters
  5. General Motors will be heading to court on January 11th to face the first of several planned 'bellwether' cases over its defective ignition switch. On Wednesday, U.S. District Judge Jesse Furman in Manhattan rejected GM's claims to dismiss the case as the plaintiff provided sufficient evidence to justify letting a jury hear whether or not the switch caused or enhanced injuries in a crash. The case in question was brought to court by Robert Scheuer who crashed into two trees in Oklahoma on May 28, 2014. The Saturn Ion he was driving did not deploy the front airbags, which he says is a result of a defective ignition switch. Furman's decision "paves the way for the jury to have an unfettered and full view of GM's behavior in covering up this defect," said Bob Hilliard, lawyer for Scheuer in a statement. "We are fully prepared to go to trial, and introduce evidence showing that the ignition switch issue did not cause the injuries in this accident, or cause the airbags not to deploy," said GM spokesman James Cain in a phone interview with Reuters. This case is important as it is the first of six 'bellweather' cases being brought to trial. These cases are sometimes used in product liability litigation where hundreds or thousands of people have a similar case. The results of the six cases will help those decide whether or not to continue with their case or settle. Source: Reuters
  6. General Motors will be heading to court on January 11th to face the first of several planned 'bellwether' cases over its defective ignition switch. On Wednesday, U.S. District Judge Jesse Furman in Manhattan rejected GM's claims to dismiss the case as the plaintiff provided sufficient evidence to justify letting a jury hear whether or not the switch caused or enhanced injuries in a crash. The case in question was brought to court by Robert Scheuer who crashed into two trees in Oklahoma on May 28, 2014. The Saturn Ion he was driving did not deploy the front airbags, which he says is a result of a defective ignition switch. Furman's decision "paves the way for the jury to have an unfettered and full view of GM's behavior in covering up this defect," said Bob Hilliard, lawyer for Scheuer in a statement. "We are fully prepared to go to trial, and introduce evidence showing that the ignition switch issue did not cause the injuries in this accident, or cause the airbags not to deploy," said GM spokesman James Cain in a phone interview with Reuters. This case is important as it is the first of six 'bellweather' cases being brought to trial. These cases are sometimes used in product liability litigation where hundreds or thousands of people have a similar case. The results of the six cases will help those decide whether or not to continue with their case or settle. Source: Reuters View full article
  7. General Motors has issued a recall for 3,296 pickups and SUVs for a problem for the ignition switch. The Associated Press reports that the key in the switch can get stuck in the "start" position and then slip to "accessory" if bumped. This is due to the lock gears in the ignition have a larger diameter than the specifications allow. If this happens, this will cause the loss of power assistance to the brakes and steering, along with possibility of no airbag deployment. This seems very familiar to another ignition switch problem on older GM compacts last year. The models affected include, 2014 Chevrolet Silverado 1500 2015 GMC Sierra 1500 2015 Chevrolet Silverado Heavy Duty 2015 GMC Sierra Heavy Duty 2015 Chevrolet Tahoe 2015 Chevrolet Suburban Unlike the recall last year which caused GM to pay a large amount in fines due to the problem being kept under wraps, this one was quickly identified. The AP says an employee had this problem and notified officials at the automaker via the Speak Up for Safety program. GM found five other cases of this fault, but no injuries or deaths were reported. GM says in a statement that dealers will replace the ignition-lock housing on the affected models. Source: Associated Press via The Detroit News, General Motors Press Release is on Page 2 GM Statement General Motors is recalling 3,073 full-size trucks from the 2014 and 2015 model years in the U.S. Some of these vehicles may have an ignition lock actuator gear with an outer diameter that exceeds specifications, which may make turning the ignition key difficult. The ignition key could get stuck in the "start" position. This may be more likely at higher interior ambient temperatures. If the vehicle is driven with the key stuck in the "start" position, and the vehicle experiences a significant jarring event or the vehicle's interior temperature cools, the ignition lock cylinder could move out of the "start" position, rotate past the "run" position, and move into the "accessory" position, leading to loss of power steering assist, power brakes and potentially air bag deployment in certain crashes. Dealers will replace the ignition lock housing. The affected vehicles are the 2014 Chevrolet Silverado LD, and GMC Sierra LD models and 2015 Chevrolet Silverado HD, Suburban, Tahoe, and 2015 GMC Sierra HD. GM is aware of five shutoffs but no crashes, injuries or fatalities related to this condition. Including Canada, Mexico and exports, the total recall population is 3,296.
  8. General Motors has issued a recall for 3,296 pickups and SUVs for a problem for the ignition switch. The Associated Press reports that the key in the switch can get stuck in the "start" position and then slip to "accessory" if bumped. This is due to the lock gears in the ignition have a larger diameter than the specifications allow. If this happens, this will cause the loss of power assistance to the brakes and steering, along with possibility of no airbag deployment. This seems very familiar to another ignition switch problem on older GM compacts last year. The models affected include, 2014 Chevrolet Silverado 1500 2015 GMC Sierra 1500 2015 Chevrolet Silverado Heavy Duty 2015 GMC Sierra Heavy Duty 2015 Chevrolet Tahoe 2015 Chevrolet Suburban Unlike the recall last year which caused GM to pay a large amount in fines due to the problem being kept under wraps, this one was quickly identified. The AP says an employee had this problem and notified officials at the automaker via the Speak Up for Safety program. GM found five other cases of this fault, but no injuries or deaths were reported. GM says in a statement that dealers will replace the ignition-lock housing on the affected models. Source: Associated Press via The Detroit News, General Motors Press Release is on Page 2 GM Statement General Motors is recalling 3,073 full-size trucks from the 2014 and 2015 model years in the U.S. Some of these vehicles may have an ignition lock actuator gear with an outer diameter that exceeds specifications, which may make turning the ignition key difficult. The ignition key could get stuck in the "start" position. This may be more likely at higher interior ambient temperatures. If the vehicle is driven with the key stuck in the "start" position, and the vehicle experiences a significant jarring event or the vehicle's interior temperature cools, the ignition lock cylinder could move out of the "start" position, rotate past the "run" position, and move into the "accessory" position, leading to loss of power steering assist, power brakes and potentially air bag deployment in certain crashes. Dealers will replace the ignition lock housing. The affected vehicles are the 2014 Chevrolet Silverado LD, and GMC Sierra LD models and 2015 Chevrolet Silverado HD, Suburban, Tahoe, and 2015 GMC Sierra HD. GM is aware of five shutoffs but no crashes, injuries or fatalities related to this condition. Including Canada, Mexico and exports, the total recall population is 3,296. View full article
  9. General Motors has agreed to a $900 million settlement with the U.S. Government over a criminal case dealing with faulty ignition switches. According to Reuters, prosecutors charged the company with wire fraud and scheming to conceal material facts from a U.S. regulator. The company acknowledged that it didn't reveal the issue to safety watchdogs or customers in due course. Along with the fine, GM will have an independent monitor to oversee its recall and safety-related practices for the next three years. If GM follows this along with other obligations, the criminal charges will be dropped. “They let the public down... They didn’t tell the truth,” said U.S. Attorney Preet Bharara in a press conference this morning in New York City. "The mistakes that led to the ignition switch recall should never have happened," said GM CEO Mary Barra in a statement. "We have apologized and we do so again today." Now at this time, the Justice Department hasn't charged any individual over the ignition switch problem. This has caused some criticism to come out. “GM killed over 100 people by knowingly putting a defective ignition switch into over 1 million vehicles. Yet no one from GM went to jail or was even charged with criminal homicide. This shows a weakness in the law not a weakness in the facts," said Clarence Ditlow, head of the Center for Auto Safety. Bharara hasn't ruled out charging individual GM employees, but explained there are "legal and factual" challenges to bringing them to trial. "The law does not always let us do what we wish we could do." Separately, General Motors has agreed to $575 million settlement dealing with civil lawsuits. Source: Reuters, The Detroit News (2)
  10. General Motors has agreed to a $900 million settlement with the U.S. Government over a criminal case dealing with faulty ignition switches. According to Reuters, prosecutors charged the company with wire fraud and scheming to conceal material facts from a U.S. regulator. The company acknowledged that it didn't reveal the issue to safety watchdogs or customers in due course. Along with the fine, GM will have an independent monitor to oversee its recall and safety-related practices for the next three years. If GM follows this along with other obligations, the criminal charges will be dropped. “They let the public down... They didn’t tell the truth,” said U.S. Attorney Preet Bharara in a press conference this morning in New York City. "The mistakes that led to the ignition switch recall should never have happened," said GM CEO Mary Barra in a statement. "We have apologized and we do so again today." Now at this time, the Justice Department hasn't charged any individual over the ignition switch problem. This has caused some criticism to come out. “GM killed over 100 people by knowingly putting a defective ignition switch into over 1 million vehicles. Yet no one from GM went to jail or was even charged with criminal homicide. This shows a weakness in the law not a weakness in the facts," said Clarence Ditlow, head of the Center for Auto Safety. Bharara hasn't ruled out charging individual GM employees, but explained there are "legal and factual" challenges to bringing them to trial. "The law does not always let us do what we wish we could do." Separately, General Motors has agreed to $575 million settlement dealing with civil lawsuits. Source: Reuters, The Detroit News (2) View full article
  11. While General Motors has gotten most of the blame in the ignition switch fiasco, the National Highway Traffic Safety Administration (NHTSA) isn't getting away scot free. The New York Times reports that the Department of Transportation released two internal documents revealing a series of failings by NHTSA. One of those failings was the administration not paying sufficient attention to a Wisconsin state trooper’s report in 2007 which suggested that the ignition switch played a key role in a fatal accident. The reports go on to say that NHTSA didn't use their full power to hold GM accountable in terms of this problem. “There needs to be a complete overhaul of this failing agency. The results of this report are long overdue,” said Senator Richard Blumenthal (D-CT). NHTSA has begun to make a number of changes in light of these reports. They include, Put manufacturers “on notice” about potential defects as soon they identified any troubling cases. Institute a 'Risk Control' program that better aligns different sections of NHTSA and encourage more sharing Be monitored by a group of outside experts including former officials of the National Transportation Safety Board and NASA “The G.M. experience changed the culture here. What that means is challenge the information you’re getting, and challenge the assumptions you are pursuing,” said NHTSA administrator Mark R. Rosekind. Still some people believe NHTSA needs to go farther. “It still soft-pedals why they have gone from one defect crisis to another,” said Sean E. Kane of the consulting firm Safety Research and Strategies. “What is missing is any mention of the importance of transparency.” Source: The New York Times View full article
  12. While General Motors has gotten most of the blame in the ignition switch fiasco, the National Highway Traffic Safety Administration (NHTSA) isn't getting away scot free. The New York Times reports that the Department of Transportation released two internal documents revealing a series of failings by NHTSA. One of those failings was the administration not paying sufficient attention to a Wisconsin state trooper’s report in 2007 which suggested that the ignition switch played a key role in a fatal accident. The reports go on to say that NHTSA didn't use their full power to hold GM accountable in terms of this problem. “There needs to be a complete overhaul of this failing agency. The results of this report are long overdue,” said Senator Richard Blumenthal (D-CT). NHTSA has begun to make a number of changes in light of these reports. They include, Put manufacturers “on notice” about potential defects as soon they identified any troubling cases. Institute a 'Risk Control' program that better aligns different sections of NHTSA and encourage more sharing Be monitored by a group of outside experts including former officials of the National Transportation Safety Board and NASA “The G.M. experience changed the culture here. What that means is challenge the information you’re getting, and challenge the assumptions you are pursuing,” said NHTSA administrator Mark R. Rosekind. Still some people believe NHTSA needs to go farther. “It still soft-pedals why they have gone from one defect crisis to another,” said Sean E. Kane of the consulting firm Safety Research and Strategies. “What is missing is any mention of the importance of transparency.” Source: The New York Times
  13. Last year, federal prosecutors in Manhattan and the F.B.I. opened an investigation into General Motors into its handling of the ignition switch defect. The investigation focused on whether the automaker failed to comply with federal safety laws stating that an automaker must disclose vehicle defects in a timely fashion and misleading federal regulators on the full extent of problem. The result of their investigation showed that GM did commit criminal wrongdoing. The New York Times reports investigators from the Justice Department have found criminal wrongdoing in the failure of GM of disclosing a defect tied to at least 104 deaths. People briefed on the inquiry say the two parties are negotiating what misconduct the company would admit to and a settlement. The Times says the amount will eclipse the $1.2 billion paid by Toyota last year for not disclosing its problem with unintended acceleration. Now the settlement will include a so-called 'cooperation credit' as GM helped out in the Justice Department's investigation. “We are cooperating fully with all requests. We are unable to comment on the status of the investigation, including timing,” said GM in a statement. Also under investigation are former GM employees, some who were dismissed last year could face criminal charges. Source: The New York Times
  14. Last year, federal prosecutors in Manhattan and the F.B.I. opened an investigation into General Motors into its handling of the ignition switch defect. The investigation focused on whether the automaker failed to comply with federal safety laws stating that an automaker must disclose vehicle defects in a timely fashion and misleading federal regulators on the full extent of problem. The result of their investigation showed that GM did commit criminal wrongdoing. The New York Times reports investigators from the Justice Department have found criminal wrongdoing in the failure of GM of disclosing a defect tied to at least 104 deaths. People briefed on the inquiry say the two parties are negotiating what misconduct the company would admit to and a settlement. The Times says the amount will eclipse the $1.2 billion paid by Toyota last year for not disclosing its problem with unintended acceleration. Now the settlement will include a so-called 'cooperation credit' as GM helped out in the Justice Department's investigation. “We are cooperating fully with all requests. We are unable to comment on the status of the investigation, including timing,” said GM in a statement. Also under investigation are former GM employees, some who were dismissed last year could face criminal charges. Source: The New York Times View full article
  15. There is some good news appearing from General Motors' ignition switch mess. The Detroit News reports that GM dealers have repaired 1.36 million ignition switches globally out of 2.36 million it believes are still in use, or about 57.8 percent of vehicles around the world. It should be noted that the 2.36 million amount is down from the 2.59 million GM recalled back in February and March. "The difference between the 2.59 million produced and recalled, and the populations being sought is made up for by scrapped vehicles or vehicles no longer traceable by registration," said GM spokesman Alan Adler in a email. In the U.S., GM dealers have repaired 1.14 million vehicles out of the 1.96 million vehicles involved in the recall. That still leaves around 823,000 cars still needing to be fixed. Adler admits get those vehicles into the service center will be difficult. Source: The Detroit News View full article
  16. There is some good news appearing from General Motors' ignition switch mess. The Detroit News reports that GM dealers have repaired 1.36 million ignition switches globally out of 2.36 million it believes are still in use, or about 57.8 percent of vehicles around the world. It should be noted that the 2.36 million amount is down from the 2.59 million GM recalled back in February and March. "The difference between the 2.59 million produced and recalled, and the populations being sought is made up for by scrapped vehicles or vehicles no longer traceable by registration," said GM spokesman Alan Adler in a email. In the U.S., GM dealers have repaired 1.14 million vehicles out of the 1.96 million vehicles involved in the recall. That still leaves around 823,000 cars still needing to be fixed. Adler admits get those vehicles into the service center will be difficult. Source: The Detroit News
  17. It has been almost two months since General Motors announced a compensation fund for families who either lost a loved one or who were injured because of a problem due to the ignition switch. According to the Detroit Free Press, almost 300 people have filed a claim. 100 people who have filed a claim said their loved ones were killed because of defect, while 184 people said their injuries come as a result of the problem. These numbers come from Amy Weiss, a spokeswoman for fund administrator Kenneth Feinberg. The Detroit Free Press says each person who has filed a claim has to provide evidence that it was the defective switch that was the cause of the injury/fatality. If the person is able to prove this, Feinberg will will use actuarial tables and medical cost data to determine individual payouts. Source: Detroit Free Press William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.
  18. It has been almost two months since General Motors announced a compensation fund for families who either lost a loved one or who were injured because of a problem due to the ignition switch. According to the Detroit Free Press, almost 300 people have filed a claim. 100 people who have filed a claim said their loved ones were killed because of defect, while 184 people said their injuries come as a result of the problem. These numbers come from Amy Weiss, a spokeswoman for fund administrator Kenneth Feinberg. The Detroit Free Press says each person who has filed a claim has to provide evidence that it was the defective switch that was the cause of the injury/fatality. If the person is able to prove this, Feinberg will will use actuarial tables and medical cost data to determine individual payouts. Source: Detroit Free Press William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster. View full article
  19. It seems with every new report concerning General Motors and the ignition switch recall, GM only looks worse off. Consider this piece from the Wall Street Journal today which reports that the automaker placed an order for 500,000 replacement ignition switches two months before announcing a recall. Emails shown to the Wall Street Journal revealed that on December 18, a GM contract worker contacted supplier Delphi Automotive for a 'urgent' order of 500,000 switches. This comes a day after GM senior executives were called into a meeting to discuss the situation over the Chevrolet Cobalt was discussed. However, no records were kept about what was said at the meeting. These emails come from Delphi which produced these and other documents as part of a discovery order connected to a case against GM in New York. GM spokesman Alan Adler tells the Wall Street Journal said the company followed the procedure set by NHTSA by submitting a correct defect chronology, and wasn’t required to disclose details of a parts order. "These emails are further confirmation that our system needed reform, and we have done so. We have reorganized our entire safety investigation and decision process and have more investigators, move issues more quickly and make decisions with better data," said GM in a statement. It should be said that automakers will call on suppliers to check on availability of parts and place orders. However with this news, it only adds to fire that is currently sitting under GM at the moment. Source: Wall Street Journal (Subscription Required) William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster. View full article
  20. It seems with every new report concerning General Motors and the ignition switch recall, GM only looks worse off. Consider this piece from the Wall Street Journal today which reports that the automaker placed an order for 500,000 replacement ignition switches two months before announcing a recall. Emails shown to the Wall Street Journal revealed that on December 18, a GM contract worker contacted supplier Delphi Automotive for a 'urgent' order of 500,000 switches. This comes a day after GM senior executives were called into a meeting to discuss the situation over the Chevrolet Cobalt was discussed. However, no records were kept about what was said at the meeting. These emails come from Delphi which produced these and other documents as part of a discovery order connected to a case against GM in New York. GM spokesman Alan Adler tells the Wall Street Journal said the company followed the procedure set by NHTSA by submitting a correct defect chronology, and wasn’t required to disclose details of a parts order. "These emails are further confirmation that our system needed reform, and we have done so. We have reorganized our entire safety investigation and decision process and have more investigators, move issues more quickly and make decisions with better data," said GM in a statement. It should be said that automakers will call on suppliers to check on availability of parts and place orders. However with this news, it only adds to fire that is currently sitting under GM at the moment. Source: Wall Street Journal (Subscription Required) William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.
  21. General Motors is now facing two new lawsuits with a total of $10 billion in compensation on the line. The two suits allege that GM's ignition switch recall has cause the values of their vehicles to drop. The first and largest suit is seeking to represent owners who bought or leased a recalled car from July 2009 to July 2014 and either still owns it, traded it in after the recall was announced back in February, or got into an accident. Steve Berman, one of the attorneys involved, tells Bloomberg that more than 20 million customers could join in the suit. “New GM repeatedly proclaimed that it was a company committed to innovation, safety and maintaining a strong brand. The value of all GM-branded vehicles has diminished as a result of the widespread publication of those defects and New GM’s corporate culture of ignoring and concealing safety defects,” stated the filing. The second suit is for those owners of vehicles bought or leased before GM's bankruptcy proceedings in 2009. This suit could run into some problems as a bankruptcy judge still needs to rule on whether or not claims for accidents and economic losses made before the bankruptcy would be allowed. GM in a statement said that it would “vigorously defend against plaintiffs’ claims that GM vehicles have reduced resale value.” Source: Bloomberg William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.
  22. General Motors is now facing two new lawsuits with a total of $10 billion in compensation on the line. The two suits allege that GM's ignition switch recall has cause the values of their vehicles to drop. The first and largest suit is seeking to represent owners who bought or leased a recalled car from July 2009 to July 2014 and either still owns it, traded it in after the recall was announced back in February, or got into an accident. Steve Berman, one of the attorneys involved, tells Bloomberg that more than 20 million customers could join in the suit. “New GM repeatedly proclaimed that it was a company committed to innovation, safety and maintaining a strong brand. The value of all GM-branded vehicles has diminished as a result of the widespread publication of those defects and New GM’s corporate culture of ignoring and concealing safety defects,” stated the filing. The second suit is for those owners of vehicles bought or leased before GM's bankruptcy proceedings in 2009. This suit could run into some problems as a bankruptcy judge still needs to rule on whether or not claims for accidents and economic losses made before the bankruptcy would be allowed. GM in a statement said that it would “vigorously defend against plaintiffs’ claims that GM vehicles have reduced resale value.” Source: Bloomberg William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster. View full article
  23. New documents released by congressional investigators last week are putting some doubt onto GM's own internal investigation and legal proceedings. The Wall Street Journal reports that new documents show Doug Parks, vice president of product programs was aware of the ignition switch problems on the Chevrolet Cobalt as early as 2005. At the time, Parks was the chief engineer on the Cobalt and Saturn Ion. On May 2, 2005, he was involved in a email chain with a dealer over a customer wanting the dealer to buy back his vehicle because the ignition switch moves out of the "run" position too easily. Parks responded by suggesting "coming up with a plug" to place on the key to reduce the weight and stop the switch from turning. "This appears to me to be the only real, quick solution," Parks said in the email. “As Ms. Barra has said repeatedly we have taken all of the personnel actions that we feel are appropriate at this time,” GM Spokesman Greg Martin told Bloomberg. These documents could cause big problems for GM's legal battles. The Consumerist explains that lawyers could argue that the lack of a recall, particularly when a former chief engineer and current vice president knew of this issue, could give some credence that the company was trying to cover up this problem. Source: The Wall Street Journal (Subscription Required), Bloomberg, Consumerist William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.
  24. New documents released by congressional investigators last week are putting some doubt onto GM's own internal investigation and legal proceedings. The Wall Street Journal reports that new documents show Doug Parks, vice president of product programs was aware of the ignition switch problems on the Chevrolet Cobalt as early as 2005. At the time, Parks was the chief engineer on the Cobalt and Saturn Ion. On May 2, 2005, he was involved in a email chain with a dealer over a customer wanting the dealer to buy back his vehicle because the ignition switch moves out of the "run" position too easily. Parks responded by suggesting "coming up with a plug" to place on the key to reduce the weight and stop the switch from turning. "This appears to me to be the only real, quick solution," Parks said in the email. “As Ms. Barra has said repeatedly we have taken all of the personnel actions that we feel are appropriate at this time,” GM Spokesman Greg Martin told Bloomberg. These documents could cause big problems for GM's legal battles. The Consumerist explains that lawyers could argue that the lack of a recall, particularly when a former chief engineer and current vice president knew of this issue, could give some credence that the company was trying to cover up this problem. Source: The Wall Street Journal (Subscription Required), Bloomberg, Consumerist William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster. View full article
  25. This morning, General Motors and Kenneth Feinberg have announced the details for the long awaited ignition switch recall compensation fund. The fund will be open to family members of anyone that was killed or injured due to ignition switch failure. That will include passengers, pedestrians, and other motorists that were killed or seriously injured because of the ignition switch. Victims will be able to begin the process starting on August 1st. Applications are due by December 31st. Feinberg says that claims will take around 90 to 180 days. As for how much GM will be paying out, that is completely up in the air. Feinberg has said that he isn't going to try and estimate how much will paid due to how many variables there are. GM hasn't placed a cap on how much money will be paid out by the fund, which leads some attorneys to think the company could be paying out billions of dollars. “GM understands. GM wants to do the right thing — and the right thing is paying people who can document their claims, and that’s a challenge. I would not dare estimate how many deaths or how many injuries until people file their claim and we evaluate the claim,” said Feinberg. However, victims who apply will have to prove their accident was the cause of the ignition switch. Also if you apply for the fund, you lose your right to sue GM at a later date. Source: Associated Press, The Detroit News William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

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