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GM 8-speed transmission lawsuit granted class action certification

A story on Autoblog about potentially faulty 8-speed automatic transmissions from General Motors in 2019 has, as of the day this was published, 166 comments, mostly from owners of cars and trucks who say they are experiencing "a hesitation, followed by a significant shake, shudder, jerk, clunk, or 'hard shift' when the vehicle's automatic transmission changes gears." At the time, lawyers were seeking statewide classes in at least six states. As of today, the Detroit Free Press reports that a judge has granted class action status to a lawsuit brought by 39 plaintiffs across 26 states covering the transmission issue. The lawsuit specifically applies to vehicles that are equipped with GM's 8L90 or 8L45 8-speed automatic transmissions made between 2015 and March 1, 2019. Both of these transmissions are similar units, the 8L45 being slightly lighter version used in fewer vehicles than the beefier 8L90, and are designed for front-engine, rear- or all-wheel drive applications. The lawsuit alleges that the erratic transmission behavior makes some vehicles unsafe to drive. Ted Leopold, partner at Cohen Milstein and the court-appointed lead counsel for the case, said in a statement, "General Motors knowingly sold over 800,000 eight-speed transmission vehicles, which they knew to be defective for years, and yet made the business decision not to tell its customers before purchase." He added, "Dealers were directed to tell the customers that harsh shifts were ‘normal' or ‘characteristic.Â’ Such decision making is both highly irresponsible and emblematic of what GM believes it can get away with." The vehicles included in the court order with potentially faulty transmissions includes: 2015-2019 Chevrolet Silverado 2017-2019 Chevrolet Colorado 2015-2019 Chevrolet Corvette 2016-2019 Chevrolet Camaro 2015-2019 Cadillac Escalade and Escalade ESV 2016-2019 Cadillac ATS, ATS-V, CTS, CT6, and CTS-V 2015-2019 GMC Sierra, Yukon, Yukon XL, and Yukon Denali XL 2017-2019 GMC Canyon Some additional details of the lawsuit can be found at the Cohen Milstein site, including claims that "since 2015, GM has issued thirteen versions of a “technical service bulletin,” or “TSB,” related to this shifting issue alone." The statement from Cohen Milstein says that a "second action regarding GM vehicles with 8L transmissions is also underway in Battle v. General Motors, LLC, 2:22-cv-108783.

GM laying off more than 4,000 workers Monday morning

According to reports from Automotive News, The Detroit News, and CNN, General Motors plans to begin laying off more than 4,000 salaried workers starting Monday morning. In a statement to AN, a spokesperson for the automaker said, "We are not confirming timing. Our employees are our priority. We will communicate with them first." We've been expecting layoffs at General Motors since November, 2018. At the time, the Detroit-based automaker announced it would seek to shed 8,100 salaried employees, shut down five assembly plants in North America, and kill off several slow-selling models. One month earlier, GM offered buyout packages to 18,000 workers and said it would seek to cut its global workforce by 25 percent. A spokesperson said at the time the moves were "proactive steps to get ahead of the curve by accelerating our efforts to address overall business performance." The cost-cutting moves are expected to save GM up to $2.5 billion in 2019 and as much as $6 billion by 2020. David Kudla, CEO and chief investment strategist of Mainstay Capital Management, referred to the impending culling as "Black Monday" and told The Detroit News that the layoffs would begin around 7:30 a.m. and continue in waves throughout the coming days and weeks. GM plans to deliver on its fourth-quarter and full-year 2018 earnings report on Wednesday. President Donald Trump plans to deliver the annual State of the Union address a day earlier on Tuesday. We expect to hear plenty more from both sides over the next several days.

Cadillac cancels its car subscription program after just two years

Cadillac is cancelling its Book by Cadillac subscription service, according to a report from the Wall Street Journal and confirmed to Autoblog by a Cadillac spokesperson. The $1,800 a month service has been in operation since early last year. The Cadillac spokesperson told us this: "Following nearly two years of service, Cadillac will temporarily pause the Book by Cadillac program effective December 1, 2018." This moves comes not too long after the decision to leave its New York City headquarters and return to Michigan. While Cadillac claims the disruption of service will be temporary, there's no defined plan to start the program back up again. The reason for the cancellation? The service ended up being more costly than Cadillac expected it to be. Owners will have 30 days from the time they're notified to turn their vehicles in. If this subscription service was your only transportation, then you better start looking for something else. The service was available in New York City, Dallas and Los Angeles. Subscribers could choose between five different Cadillacs: ATS-V, CTS-V, CT6, XT5 and Escalade. You'd be allowed up to 2,000 miles per month and 18 vehicle swaps per year through the concierge service. Cadillac would bring the car of your choice to you and take the old car away at your whimsy. The price included registration, taxes, insurance and maintenance costs. No long term commitment was necessary to sign up. This makes Cadillac one of the first manufacturers to end a nascent subscription service. If it starts back up again, expect it to look a bit different from the current program. Cadillac says it's using this experience to make strategy adjustments in the future. Whether that means a much more costly program for users, or no subscription program at all, we don't know. Plenty of other manufacturers still offer limited subscription programs in select cities. We highlighted some of the biggest ones in our vehicle subscription service guide here. It'll just be a waiting game to figure out if these modes of ownership take off going forward. For more information on Vehicle Subscription Services, check out the Complete Guide. Related video: Cadillac Car Buying subscription service book by cadillac