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GM isn't liable for punitive damages in ignition switch cases

NEW YORK — A federal appeals court said General Motors is not liable for punitive damages over accidents that occurred after its 2009 bankruptcy and involved vehicles it produced earlier, including vehicles with faulty ignition switches. The 2nd U.S. Circuit Court of Appeals in Manhattan said on Tuesday that the automaker did not agree to contractually assume liability for punitive damages as part of its federally-backed Chapter 11 reorganization. GM filed for bankruptcy in June 2009, and its best assets were transferred to a new Detroit-based company with the same name. The other assets and many liabilities stayed with "Old GM," which is also known as Motors Liquidation Co. Tuesday's 3-0 decision may help GM reduce its ultimate exposure in nationwide litigation over defective ignition switches in several Chevrolet, Pontiac and Saturn models. It is also a defeat for drivers involved in post-bankruptcy accidents, including those who collided with older GM vehicles driven by others, as well as their law firms. The ignition switch defect could cause engine stalls and keep airbags from deploying, and has been linked to 124 deaths. A lawyer for the drivers and their law firms did not immediately respond to requests for comment. GM had no comment. Circuit Judge Dennis Jacobs said GM's agreement to acquire assets "free and clear" of most liabilities excused it from punitive damages claims for Old GM's conduct. He also noted that the judge who oversaw the bankruptcy concluded that the new company could not be liable for claims that the "deeply insolvent" Old GM would never have paid. The decision upheld a May 2018 ruling by U.S. District Judge Jesse Furman in Manhattan, who oversees the ignition switch litigation. Drivers have sought a variety of damages in that litigation, including for declining resale values. GM has recalled more than 2.6 million vehicles since 2014 over ignition switch problems. It has also paid more than $2.6 billion in related penalties and settlements, including $900 million to settle a U.S. Department of Justice criminal case. The case is In re: Motors Liquidation Co, 2nd U.S. Circuit Court of Appeals, No. 18-1940. Government/Legal Chevrolet Pontiac Saturn Safety gm ignition switch

Bob Lutz builds the case for a mid-engined Corvette

Rumors of a mid-engine Corvette are like automotive industry folklore at this point. Every once in a while, news pops up that it might be happening or is under development, but nothing actually ever comes to fruition as something people can actually buy. The latest spy shots strongly suggest a mid-engine 'Vette is in the cards, yet again, possibly for 2018. Now, an op ed by former General Motors executive (and definite performance car fan) Bob Lutz in Road & Track gives the inside scoop on the history of one of these proposals and lays out how to make it happen today. According to Lutz, the company's engineers believed the C6 ZR1 was at the limit for front-engine, rear-wheel drive performance in that package, and the only solution was to move the powerplant behind the driver. Lutz even got then CEO Rick Wagoner on board. The scheme made it at least as far as clay models for mid-engine versions of the 'Vette and Cadillac XLR. Eventually, a lack of money got in the way, though, bringing the project to an end. Lutz puts a lot of faith in GM's current leaders, especially Mary Barra and Mark Reuss. He thinks the chances of a mid-engine 'Vette happening this time are better than 50 percent. The model, rumored to be named Zora, could offer over 700 horsepower in an ultra lightweight body and be priced at about $120,000 to "suck the doors off everybody." Head over to Road & Track to get some insights from this highly respected and entertaining auto industry veteran. Related Video:

Recharge Wrap-up: Tesla sells Model S 85 and 70D in Malaysia, Chevy Spark EV built using clean energy

Tesla will send Model S 70D and Model S 85 EVs to Malaysia for leasing to government-linked companies. Only those companies will have access to the models as a two-year lease, which will be imported and leased by Malaysian Green Technology Corporation. The plan is part of an initiative by the Ministry of Energy, Green Technology and Water to allow government officials and other influential people to get to know the electric vehicles and the benefits that come along with them. Most of the 120 vehicles available will be the 70D model, and the lessee companies will have the option to purchase the cars at the end of the two years. Read more from Paul Tan's Automotive News. Wanxiang is hosting students from Delaware in China as part of a program to learn Mandarin and visit schools and science and technology sites. Wanxiang, the auto parts company that acquired Fisker (which had manufacturing based in Delaware) and battery maker A123 Systems, will give the students tours of its solar technology facilities, among other places, and see what daily life is like for families in the region. The program helps students interested in science and technology to foster marketable skills — like learning a foreign language — that will help them get jobs in industries around the world. Read more at Delaware Online. The Chevrolet Spark EV's electric motor (pictured) and drive unit are manufactured using clean energy. The e-motors building of the General Motors Baltimore Operations complex has a new rooftop solar array and uses LED and CFL lighting, helping the building recently earn LEED Silver certification. The landfill-free facility also takes advantage of the 1.23-megawatt solar array on the grounds, helping it source six percent its energy from renewable sources. The plant has reduced its energy intensity by 15.5 percent in three years, and continues to work toward reducing consumption and sourcing clean energy. "We believe reducing our environmental footprint is good for the climate and good for our business," says GM Executive Director of Global Public Policy Greg Martin. Read more in the press release below. Spark EV Motor Plant Fueled by Green, Clean Energy ENERGY STAR®, USGBC and Maryland state agency recognize facility's efforts WHITE MARSH, Md. – Chevrolet recently began selling the Spark EV to Maryland commuters able to take advantage of the state's robust charging infrastructure.