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GM won't pay owners of recalled cars for lost value

Kenneth Feinberg, the man in charge of the General Motors compensation fund dealing with the its widespread ignition switch woes, has issued an informal, two-letter response to the plaintiffs in more than 70 lawsuits seeking redress for lost resale value of their Cobalts: "No." The cases were recently combined into one, but Feinberg told The Detroit News that the fund will deal "only with death and physical injury claims," and that "perceived diminished value" will get no consideration.
ALG, the firm specializing in establishing residual values, determined that Cobalt owners had lost $300 compared to the segment competition and doesn't envision any long-term effects from the recall situation. Feinberg's statement comes in advance of public details on how the compensation fund will work and adheres to GM's long-held position on the matter. The company has already asked a judge to throw out such suits using the pre-bankruptcy defense, even as it stopped using that defense in cases of injury and death.
With plenty of potential gain from the GM suit, however, don't expect the plaintiffs to give up yet. When Toyota was sued for the same reason during the unintended acceleration debacle, it eventually settled the case for between $1 billion and $1.4 billion just to get it over with. Since the 85 law firms involved in the Toyota litigation took home more than $250 million of that total, we shouldn't expect the attorneys to give up on a GM payout, either.

GM to invest $632 million in Indiana plant for future pickup truck production

General Motors plans to invest $632 million in its Fort Wayne, Indiana, assembly facility to prepare the plant for future internal combustion engine full-size light duty trucks, it said on Monday. The investment will be used to support new conveyors, tooling and equipment for the plant that manufactures GM's Chevrolet Silverado 1500 and GMC Sierra 1500 trucks. GM has detailed more than $2.3 billion in planned investment in a series of announcements since last week as it works to retool existing North American auto plants and introduce more efficient next-generation internal-combustion full-size trucks and SUVs. Another investment announcement is planned later this week. The largest U.S. automaker is continuing to make big investments in gas-powered vehicles even as it vows to stop building them in 2035. Last week, GM said it was investing more than $500 million in its Arlington, Texas, assembly plant to prepare it for production of internal combustion engine full-size SUVs. GM faces increasingly stringent emissions requirements from California and the Environmental Protection Agency (EPA). Last week, GM also said it plans to invest more than $1 billion to re-tool two manufacturing sites in Flint, Michigan, to prepare for a new generation of its heavy-duty trucks. The Texas announcement highlights the company's commitment to continue "providing customers with a strong portfolio of (internal combustion) vehicles for years to come," GM said last week. On Tuesday, GM said it would invest C$280 million ($210 million) in its Canadian Oshawa Assembly to produce the next-generation internal combustion engine full-size trucks. GM paid $128.2 million in fines for failing to meet Corporate Average Fuel Economy (CAFE) program requirements for 2016 and 2017, records released recently show. The EPA in April proposed requiring a 56% reduction in projected fleet average emissions over 2026 requirements. (Reporting by David Sherpardson in Washington and Shivansh Tiwary in Bengaluru; Editing by Shilpi Majumdar and Conor Humphries) Plants/Manufacturing Chevrolet GM GMC

Next-generation GMC Canyon, Chevy Colorado spied together

With the debut of the next-generation GMC Canyon coming in a couple of months (in off-road-ready AT4 guise no less), it's no surprise that both it and the Chevy Colorado are out testing without the heavy coverings of early prototypes. One of our spy photographers caught examples of both trucks with close-fitting vinyl wraps. This gives us a great opportunity to see each pickup more clearly, but also to compare and contrast the designs. From the front, the GMC features a narrower, but seemingly taller grille. At the top are slender lamps. They seem to be daytime running lights, though, and below them are much larger units that will function as the actual headlights. The prototype shown seems to be one of the AT4 variants, based on the lack of a lower air dam and the opened up corners of each bumper. Small fog lights show up in the lower bumper, too. As for the Chevy, its grille is wider, and it blends into the headlights. The lights are at the top of the grille, and they seem to incorporate the actual headlights, not just running lamps. The grille mesh has some interesting detailing, and there are auxiliary lights below the main headlights. This one seems to be a more mainstream Colorado model since it still has a front air dam, possibly a Z71 model, considering the chunky tires. Not surprisingly, the two trucks are very similar from the sides and the rear. They have cabins that look lower, longer and more squared-off than the current models. The fenders look more punched out and aggressive, too. The main differentiator between the Chevy and GMC are the wheel openings. The GMC has sharp corners and the Chevy has more rounded ones, as is the case with the full-size trucks. As previously mentioned, the GMC Canyon AT4 will be revealed this summer, so likely in just a month or two. The Colorado will likely be revealed this summer, too. It's expected that it will use the turbocharged 2.7-liter four-cylinder shared with the Silverado. Naturally, it will be available with two- and four-wheel drive and a variety of trim levels including the AT4 and ZR2 off-road versions. Related video: