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General Motors 130 articles

New GM argues it shouldn’t pay for old GM’s liabilities as economic loss claims mount

General Motors (GM) could face paying more than $2 billion in additional damages stemming from its defective ignition switches if a bankruptcy judge rules that economic loss claims against the company can move forward. Many analysts say U.S. bankruptcy judge Robert Gerber could easily allow economic loss claims against GM to move ahead. Those claims, which could amount to hundreds of thousands given the scope of the ignition switch problem, argue that the potentially deadly ignition switch flaw has caused values to plummet in the vehicles affected by the recall. GM has recalled more than 2.2 million vehicles in the ... Read More

GM Ignition Switch Compensation Fund reports 12 percent increase in claims

The latest report on the GM ignition switch compensation fund has shown a 12 percent increase, resulting in a total of 1,772 claims of injuries and deaths caused by the auto manufacturer’s faulty ignition switch. It has been a rocky year for General Motors (GM) as more and more details of the 11-year delayed ignition switch recall come to light. The defective ignition switch continues to be linked to numerous deaths and serious injuries. The recalled switch at the center of the GM controversy has the potential to slip out of the “run” position while the car is in motion, therefore cutting ... Read More

GM vehicles with defective ignition switches being sold through dealerships

General Motors (GM) chief Mary Barra said Thursday that the automaker is “stepping up” its outreach to owners of vehicles with defective ignition switches that have not yet been repaired, but state and federal laws do not prohibit dealerships from selling used vehicles that have not had the proper recall repairs performed. Throughout the country, buyers of used GM vehicles are finding that their “new” used cars, trucks, and SUVs, purchased after GM announced its sweeping recalls, are still in need of safety repairs, including the especially urgent ignition switch repair. Used car buyer Diane Miller told Cincinnati’s WCPO that ... Read More

GM’s top lawyer to retire amid ignition switch defect scandal

General Motors (GM)’s top lawyer Michael Millikin is retiring from the company early next year after a 36-year career with the Detroit automaker. His resignation comes amid a U.S. Justice Department investigation of the company’s handling of its deadly ignition switch defect, which affects 2.6 million vehicles and has been linked to at least 29 deaths and 27 serious injuries. Mr. Millikin and GM’s entire legal team have fallen under harsh criticism after it became known that they played a key role in the company’s inaction while millions of vehicles with defective, potentially deadly ignition switches rolled off GM assembly ... Read More

GM announces more safety recalls over weekend, 57,000 vehicles affected

General Motors (GM) announced two more safety recalls over the weekend affecting more than 57,000 vehicles in the United States for problems involving overheating fuel pumps, loose electrical connections, and yet more potentially deadly ignition switch defects. The new recalls came just one day after the Detroit automaker recalled more than half a million cars and SUVs for loose joint and hood latch defects. On Saturday, GM said that it’s recalling about 47,000 2008-09 Pontiac G8 cars and about 7,600 model-year 2011-2013 Chevrolet Caprice police cars because drivers may bump the ignition key with their knee, inadvertently switching the key ... Read More

GM launching two new safety recalls of more than half a million cars, SUVs

General Motors (GM) announced two new safety recalls on Friday for loose joints and a hood latch problem that together affect more than 524,000 cars and SUVs. The first recall encompasses 430,550 Cadillac SRX and Saab 9-4X SUVs for possible loose joints and worn threads in the rear toe link assembly, which could cause the toe adjuster link to separate and in turn cause the vehicle to veer off the intended course at highway speeds and potentially crash. GM said it knows of three crashes and two injuries linked to the rear toe link defect. The recall affects 2010-2015 model-year ... Read More

General Motors ignition switch death toll rises to 23

The number of deaths linked to the ignition switch defect in more than a decade of General Motors (GM) vehicles continues to climb, with the latest toll hitting 23, according to a report by Kenneth Feinberg, the lawyer overseeing a fund established to compensate crash victims and their families. After it finally began recalling vehicles affected by the potentially deadly ignition flaw last February, GM said that it had linked the defect to 13 deaths and 54 crashes. Underscoring the seriousness of the problem, safety advocates and plaintiffs’ lawyers, however, said the real toll was likely to be much higher. ... Read More

U.S. Treasury approved GM exec pay raises despite poor performance, losses

Top executives at General Motors (GM) and Ally Finance (formerly GMAC, GM’s former consumer finance offspring) received “excessive” pay hikes approved by the U.S. Treasury Department, which has monitored and approved executive salaries and bonuses since the companies received $66.7 billion in taxpayer-funded bailout money. According to a report released Wednesday by the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), the Treasury Department allowed total pay packages of at least $1 million for all of the top executives at both companies. The report also says several GM executives who received a combined $3 million ... Read More

GM announces two new recalls to repair fire hazards

General Motors (GM) has announced two new safety recalls over defects that could potentially result in fire, and in some cases, explosion. Last week, GM said it was recalling about 3,200 natural gas-powered cargo vans for gas leaks that could lead to an explosion and fire. The recall affects 3,196 Chevrolet Express CNG and GMC Sahara vans powered by compressed natural gas. The Detroit automaker informed the National Highway Traffic Safety Administration (NHTSA) that the affected vehicles “may have a CNG (compressed natural gas) high pressure regulator that leaks natural gas into the atmosphere,” adding that this flaw “could cause ... Read More

NHTSA’s failure to address GM ignition switch problem detailed in Congressional report

Federal auto safety regulators fell under scathing criticism again this week following the release of a House committee report that underscored their failures in policing General Motors (GM) while consumer complaints about defects and accident reports piled up in the National Highway Traffic Safety Administration’s (NHTSA) database. “The agency’s repeated failure to identify, let alone explore, the potential defect theory related to the ignition switch — even after it was spelled out in a report the agency commissioned — is inexcusable,” the House Energy and Commerce Committee concluded in its report. The report blames NHTSA for failing to notice a ... Read More