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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.

GM profit dips on truck changeover, but beats estimates

DETROIT — General Motors on Thursday reported a higher-than-expected quarterly profit despite a drop in production of high-margin pickup trucks, as it gears up for new models that are expected to boost profits next year. Like rivals Ford and Fiat Chrysler Automobiles, GM is banking on highly-profitable Chevy Silverado and GMC Sierra pickup trucks to lift profits, as consumers shift away from traditional passenger cars in favor of these larger, more comfortable trucks, SUVs and crossovers. During the first quarter, the process of changing over to GM's new pickups resulted in a drop in production of 47,000 units. GM Chief Financial Officer Chuck Stevens said the production drop had resulted in a drop in pre-tax profit of up to $800 million. Earlier this year, GM said its 2018 profits would be flat compared with 2017, but expected its all-new pickup trucks would boost margins starting in 2019. On Thursday, GM reiterated its full-year 2018 forecast for adjusted earnings in a range from $6.30 to $6.60 per share. The automaker said capital expenditures were more than $500 million higher in the quarter because of investments its new pickup trucks and a family of low-cost vehicles under development with Chinese partner SAIC Motor Corp. On Wednesday, rival Ford said it would stop investing in most traditional passenger sedans in North America. CFO Stevens told reporters on Thursday that GM has "already indicated that we will make significantly lower investments on a go-forward basis" in sedans. 2019 GMC Sierra View 21 Photos GM benefited from a lower effective tax rate in the quarter, but adjusted pre-tax margin fell to 7.2 percent from 9.5 percent a year earlier. Stevens said the company's profit margin should hit 10 percent or higher in the second quarter and for the full year. GM said material costs were $700 million higher in the first quarter, and it expects those costs to continue rising. The automaker said it would counter those increases with cost cutting measures. "It is a more difficult environment than it was three or four months ago," Stevens said when asked about rising commodity prices from potential steel and aluminum tariffs announced by the Trump administration. "But we are confident we can continue to offset that." The company reported quarterly net income of $1.05 billion or $1.43 per share, a drop of nearly 60 percent from $2.61 billion or $1.75 per share a year earlier. Analysts had on average expected earnings per share of $1.24.

2021 Chevy Tahoe, GMC Yukon fuel economy and towing capacities go official

Most of the puzzle pieces have fallen into place with GM’s new full-size SUVs, but today we have fuel economy and towing to add to the picture. Numbers for the standard 5.3-liter V8 and upgrade 6.2-liter V8 are out, but GM has held back on the 3.0-liter turbodiesel inline-six for the time being. Those numbers are most likely not ready yet. Minor improvements and decreases are seen throughout the Tahoe/Suburban and Yukon/Yukon XL lineup. Because there are so many variants, weÂ’re going to just lay them out below for you. 5.3-liter V8 2021 Tahoe/Yukon 2WD: 16/20/18 2021 Tahoe/Yukon 4WD: 16/20/18 2021 Suburban/Yukon XL 2WD: 16/20/18 2021 Suburban/Yukon XL 4WD: 15/19/17 6.2-liter V8 2021 Tahoe/Yukon 2WD: 15/20/17 2021 Tahoe/Yukon 4WD: 14/19/16 2021 Suburban/Yukon XL 2WD: 15/20/17 2021 Suburban/Yukon XL 4WD: 14/19/16 As you can see, there isnÂ’t a whole lot of difference between two-wheel drive and four-wheel drive options. You can eke out an extra mpg here and there, but itÂ’s a penalty weÂ’d be happy to live with to have four-wheel traction. The biggest loser in all of this is highway mpg. Chevy has made the trucks bigger and added weight with the independent rear suspension, causing a decrease in fuel economy. For example, a 2020 Tahoe with the 6.2-liter V8 and four-wheel drive is rated at 14/22/17. The 2021 truck drops 3 mpg on the highway and 1 mpg in the combined rating. There are improvements to be found, though. A 2020 Suburban with the 5.3-liter V8 and four-wheel drive is rated 14/21/16. Fuel economy in the city goes up 1 mpg, but you lose 2 mpg on the highway and 1 mpg in the combined rating. ThereÂ’s a bit of give and take here, but at least a slight increase in city mpg has accompanied the greater loss in highway fuel economy. 2021-chevy-tahoe-chicago-01 View 12 Photos As for towing, the Tahoe/Yukon with the 5.3-liter V8 and two-wheel drive has a new 7,900-pound capacity, and the four-wheel drive model is rated at 7,700 pounds. Respectively, those are the best figures youÂ’ll get with the standard towing capacity. Opt for the maximum towing package, and the Tahoe/Yukon capacities go up to 8,400 pounds (two-wheel drive) and 8,200 pounds (four-wheel drive). The numbers all take slight cuts when you go for the 6.2-liter V8. Both the Suburban and Yukon XL offer similar or identical towing figures as their shorter counterparts do.