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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.

2019 Chicago Auto Show Truck Roundup: Toyota, Ford, Chevy and Ram bring it

The 2019 Chicago Auto Show features an array of heavy-duty trucks, smaller trucks, other kinds of trucks, and well, more trucks. That means new versions of the 2020 Chevy Silverado Heavy Duty and 2020 Ford F-150 Super Duty, a refreshed 2020 Toyota Tacoma and a trick tailgate on the 2019 Ram 1500. Sound a little crazy? Morgan Stanley research says 68 percent of passenger vehicles sold in the United States last year were classified as light trucks. So actually, bring on the trucks! Here's some impressions on the Chicago reveals, plus our take on the 2020 Subaru Legacy sedan. — Toyota updated the 2020 Tacoma with some light but useful enhancements. An improved infotainment has new audio features and larger screens. The grilles and wheels are different, but nothing drastic. Toyota still offers nice differentiation across the Tacoma lineup, and the design tweaks are subtle but thoughtful. Toyota tends to stretch out the Tacoma's generations, so it's wise to keep modifying and iterating to keep pace in this competitive segment. — Staying with Toyota, the Land Cruiser Heritage Edition is a legit special model that fans of this historic nameplate will appreciate. An anchor of the Toyota line in the United States since 1958, the Land Cruiser's roots date to Toyota's 1951 BJ Series military vehicle. Two colors, Midnight Black and Blizzard Pearl, are exclusive to this model and look slick against the blacked-trimmed grille and lightly bronzed wheels. Inside, bronze stitching is used on the steering wheel, seats, center console and other parts. The best part? Land Cruiser spelled out in script on the rear pillar. It's a limited model (1,200 units) and pricing isn't out yet, but that badge is probably why you buy this SUV. — The 2020 Chevy Silverado HD gets imposing looks that differentiate it from the light-duty range, an eye-popping max towing capability of 35,500 pounds and some updated powertrain elements. A new gas-fed V8 that serves as the entry point is one of the highlights, and the 6.6-liter mill makes 401 hp and 464 lb-ft, up significantly over the old 6.0-liter. There's also a new Allison 10-speed transmission teaming with the Duramax diesel to achieve that lofty max towing figure. With an updated trailering system and a larger cabin, the Silverado HD range is comprehensively remade to fight Ram and Ford. — The 2020 Ford Super Duty is also redone, and like the Chevy line, it gets a new gas V8 checking in at 7.3 liters.

Chevy, GMC and Ram dealers are worried they'll run out of new pickups

One of the unexpected side effects of the ongoing coronavirus pandemic is a shortage of pickups at Chevrolet, GMC and Ram dealers. Supplies are running out, and the factories that build these trucks remain closed. Stores across the nation began increasing incentives in March, when the first stay-at-home orders were issued, in a bid to continue luring buyers into showrooms. They also launched online sales channels, or expanded their existing digital business. Sales nonetheless plummeted in April 2020, but in-demand vehicles, like the Ram 1500 and the Chevrolet Silverado, are still selling relatively well thanks in part to the aforementioned incentives. Pickups outsold sedans for the first time in April 2020, according to The Detroit News, by 17,000 units. The problem is that General Motors, Fiat Chrysler Automobiles (FCA), and Ford temporarily closed their factories in March. "The pipeline is very dry," said Mike Maroone, the CEO of a large dealership group named Maroone USA, in an interview with Automotive News. He told the publication his Chevrolet stores are sitting on a 30-day supply of the Silverado, which is one of America's best-selling vehicles. "That is a problem for us," he concluded. Coronavirus-related lockdowns and factory closures compound problems already faced by dealerships who represent General Motors-owned brands. They entered 2020 with a thinner inventory than a year earlier due to the 40-day United Auto Workers (UAW) strike that paralyzed the company late in 2019, and the 0%, 84-month offers announced in March have sapped supply. Ram wasn't affected by a strike, but it has relied heavily on generous incentives to move trucks off lots. Ford, on the other hand, limited incentives to 2019 models. Inventory levels differ greatly from region to region. The national average for the Silverado stood at an 82-day supply in March 2020, down from 120 in March 2019. Ram stores had a 114-day supply of the 1500 (compared to 134 a year earlier), while Ford bucked that trend with a 111-day supply versus 84 in 2019. Don't panic if you're in the market for a truck; we're not facing a complete drought. Automotive News added that America's light-duty pickup inventory could fall to 400,000 units by the end of May, and drop further to 260,000 units in June. For context, there were about 700,000 light-duty trucks in stock in May and June of 2019. That's unquestionably a sharp drop, but there will still be over a quarter of a million trucks to choose from.