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GM is the latest automaker accused of diesel emissions cheating

Volkswagen and Ram need to make room on the diesel-emissions bench for General Motors. America's largest automaker was accused in a lawsuit on Thursday of rigging hundreds of thousands of diesel trucks with at least three so-called defeat devices to ensure that the trucks would meet federal and state emission standards, even if they generated more pollution in real-world driving. According to the complaint, on-road emissions testing conducted for the plaintiffs found that Duramax-equipped trucks produced NOx pollutants, comprised of nitrogen and oxygen atoms, two to five times higher than legally permitted, and "many times" higher than their gasoline counterparts. The proposed class-action lawsuit was filed in federal court in Detroit on behalf of people who own or lease more than 705,000 Chevrolet Silverado and GMC Sierra pickup trucks fitted with "Duramax" engines from 2011 to 2016 model years. The lawsuit seeks remedies including possible refunds or restitution for lost vehicle value, plus punitive damages. It adds to legal problems for Detroit-based GM, which has already paid about $2.5 billion in penalties and settlements over faulty ignition switches linked to 124 deaths. GM joins at least five automakers whose diesel emissions have been scrutinized by regulators or consumers. They include VW, which has admitted to cheating; Mercedes-Benz parent Daimler; Fiat Chrysler Automobiles, Peugeot and Renault. GM spokesman Dan Flores called the claims "baseless," and said the trucks comply with US Environmental Protection Agency emissions standards and California's own tough standards. Shares of GM were down 69 cents, or 2.1 percent, at $32.50 in afternoon trading, after earlier falling to $31.93. The GM lawsuit was filed by several law firms, including Hagens Berman Sobol Shapiro, which helped reach multibillion-dollar settlements with VW on behalf of drivers and dealers. The case is Fenner et al v General Motors LLC et al, US District Court, Eastern District of Michigan, No. 17-11661. The named plaintiffs are Andrei Fenner of Mountain View, California and Joshua Herman of Sulphur, Louisiana. They said they would not have bought their respective 2011 Sierra and 2016 Silverado trucks, or would have paid less for them, had they known about the alleged rigging. Joseph Spak, an RBC Capital Markets analyst, in a research report said "negative publicity" from the lawsuit could drive buyers to trucks from Ford or even Fiat Chrysler's Ram.

UAW rejects GM contract proposal but makes a counter offer

The United Auto Workers union said a new comprehensive offer made by General Motors Co late Monday to end a two-week-old strike was not acceptable and said it had made a new counterproposal. UAW vice president Terry Dittes said in a letter to members "there are many important issues that remain unresolved." The union is awaiting GM's next proposal. He said GM's offer came up short on many issues.  Dittes said GM made a "comprehensive proposal" at 9:40 p.m. Monday. "This proposal that the company provided to us on day 15 of the strike did not satisfy your contract demands or needs. There were many areas that came up short like health care, wages, temporary employees, skilled trades and job security to name a few." Dittes is the union's vice president for GM relations and the UAW's lead negotiator in these contract talks. "We have responded today with a counterproposal and are awaiting GM's next proposal to the union," he wrote. "Regardless of what is publicized in print or social media, etc., there are still many important issues that remain unresolved." The strike, in its third week, has cost GM more than $1 billion, according to J.P. Morgan analyst Ryan Brickman. He said the cost per day in potential profit is $82 million. However, another analysis, by East Lansing-based consultant Anderson Economic Group, put the losses at $25 million a day. And the effects of the strike are expanding. GM said Tuesday the strike has created a parts shortage that forced the automaker to halt production at its pickup and transmission plants in Silao, Mexico, temporarily laying off 6,000 workers. Silao is where GM builds its highly profitable four-door crew cab Chevy Silverado and GMC Sierra pickups. The strike has also forced GM to idle some Canadian workers, and many suppliers have been forced to halt operations. About 48,000 UAW members went on strike on Sept. 16 seeking higher pay, greater job security, a bigger share of the leading U.S. automaker’s profit and protection of their healthcare. 

GM tells owners not to use SUV wipers due to fire risk

General Motors is recalling 31,685 examples of the 2016 Buick Enclave, Chevrolet Traverse, and GMC Acadia because a short circuit in the windshield wiper motor can potentially lead to a fire. Due to the danger, the company is asking owners not to use the wipers until the problem is fixed, according to The Detroit Free Press citing the Associated Press. A manufacturing defect in the wiper motor cover means that the electrical terminals can come into contact and cause a short. The part could "melt, smoke, or catch fire," according to a statement from GM. The company will get them fixed immediately, and dealers will replace the cover. If there's bad weather at the time the owner specifies to get the recall work completed, the automaker will come pick up the crossovers. Depending on parts availability, the automaker will supply a rental car for customers, as well. The issue was discovered at the factory. According to the company's statement, only 6,405 actually made it to customers, and they were notified immediately by overnight letter. The rest were in dealer stock. The affected crossovers carry build dates between August 18, 2015 and September 24, 2015. Of those, there are 29,295 in the US and 1,073 in Canada. GM Statement: General Motors has told the National Highway Traffic Safety Administration that it will recall approximately 29,295 2016 model year Chevrolet Traverse, Buick Enclave and GMC Acadia SUVs in the U.S. because the front windshield wiper motor may overheat when in use because of a manufacturing defect. In some cases, the front windshield wiper motor cover may melt, smoke or catch fire. The approximately 6,405 customers who have taken delivery of these vehicles were notified by overnight letter and are urged to contact a GM dealer as soon as possible to arrange a service appointment. These customers should not use the front windshield wipers until they have been repaired. If weather conditions prevent driving the vehicle without using the windshield wipers, GM will arrange to pick up the vehicle for servicing. If repair parts are unavailable, GM will provide a rental car at no cost until parts become available. The total population, including Canada, Mexico and exports, is approximately 31,685. About 25,280 of these vehicles are in dealer stock and will not be sold until repairs are made.