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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

GM doing fine at retaining Pontiac owners

This isn't the first time we've reported positive news about General Motors retaining former Pontiac owners. Get a few more stories like this latest report from Edmund's Auto Observer, and it will mark an ongoing positive trend for GM. Edmunds.com crunched the numbers to see how well the General is hanging on to customers after shutting out the lights at Pontiac, and it found that nearly 40 percent of Pontiac owners stayed with a vehicle from a General Motors brand.
The numbers are a little lower than an earlier R.L. Polk & Company study, but Edmunds says General Motors is keeping more former Pontiac buyers than it has since 2007. Most are turning to vehicles from Chevrolet, especially during January and February of 2011, when GM incentivized Pontiac owners to stay under the umbrella. Those moves seem to have worked, and 28.1 percent of Pontiac owners trading up made the jump into a Bowtie.
Buyers that have gone elsewhere have largely stayed loyal to Domestic automakers, with Ford picking up the most conquests from Pontiac, with 9.4 percent switching. Toyota and Honda picked up 7.4 percent of the pool of former Pontiac drivers. The numbers are defying any predictions that Pontiac buyers would completely exit the General Motors fold, and have climbed up closer to parity with the retention figures of other GM brands from a 2009 low of only 16 percent retention.

World's only 1964 Pontiac XP-833 Banshee coupe for sale by Kia dealer

It seems like there has been a spate of especially odd car sales in the first part of this especially odd year, from the numerous barn finds and homebrew specials to the time capsule cars — like the BMW wrapped in a protective bubble for 23 years. Napoli Kia in Milford, Connecticut, brings us another, via Motor1. Len Napoli is the dealership principal and die-hard Pontiac maven; his father opened Napoli Pontiac in 1958, and Len held onto the franchise until the early 2000s, just before GM shuttered the brand that built excitement. Napoli got hold of the 1964 Pontiac Banshee XP-833 coupe concept, and put the car up for sale through his Kia dealership for $750,000. The exceptional price comes from the fact that Pontiac built two Banshee concepts in 1964, one this silver coupe with a red interior, the other a white roadster, making each concept a one-of-one collector car.      Motor Trend wrote a detailed piece on this one in 2013, the editorial tour hosted by Bill Collins, the Banshee's lead engineer. The short story is that GM exec John Z. DeLorean — yes, him —  gave approval to a small crew at Pontiac to create a two-seater sports car to compete with the Mustang, because GM had nothing to fend off the four-seat coupe that would sell one million units in just 18 months on the market. Collins and his team took inspiration from the 1963 Corvair Monza GT concept, working up a fiberglass body over a steel frame, with a 230-cubic-inch overhead-cam straight-six producing 165 horsepower and 216 pound-feet of torque, a four-speed manual transmission, and 9.5-inch drum brakes at all corners. The idea was that the XP-833 would be "an affordable and fun two-seat sports car," the concept demonstrating the base-model price leader offering a lengthy list of options for those who wanted more. The white roadster, in fact, fitted a 326 cubic-inch V8 under the hood. Rumor says that Chevrolet execs didn't like having another two-seater sports car in the GM fold, especially one with a fiberglass body that held weight down to 2,200 pounds. GM execs took one look at the two concepts in 1965 and shut the project down. The two XP-833s lived in a garage for years, Collins and his colleague Bill Killen getting permission to buy the cars from GM in 1973 before Collins left to help engineer the DeLorean DMC-12. It wasn't until just before Collins departed that the XP-333 got the name Banshee.