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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

Junkyard Gem: 2003 Pontiac Grand Am GT 30th Anniversary Edition

With the era of the 1960s-style muscle car ended by the ever-more-stringent emissions regulations, insurance costs and higher gasoline prices of the early 1970s, GM's Pontiac Division was ready with a lineup of flash-enhanced machines packed with (alleged) European-style performance and styling. Three of them were based on the midsize A Platform for 1973: the LeMans, the Grand Prix and the brand-new Grand Am. The 1973 Grand Am was cheaper than the luxed-up Grand Prix, but still had a BMW-ish interior and wild exterior styling; sales weren't great, but the 30th anniversary of this car seemed sufficiently momentous for Pontiac to create a special-edition package for its soon-to-be-axed successor. Here's one of these rare machines, spotted recently in a Denver car graveyard. The original rear-wheel-drive Grand Am was built for the 1973-1975 and 1978-1980 model years, but its similarity to the much cheaper LeMans kept sales numbers unimpressive. When the Grand Am name was revived for a Pontiac-badged compact on the front-drive N Platform in the 1985 model year, however, it became a big seller right away and stayed that way into our current century. The N-Body Grand Am was built through 2005, with platform updates for the 1992 and 1999 model years. Along the way, it was sibling to such cars as the Oldsmobile Calais, Buick Somerset, Chevrolet Beretta and Oldsmobile Alero. By 2003, though, the ground was shifting under Pontiac's feet. The iconic Firebird had been discontinued the previous year, and even the Grand Prix's days were officially numbered. Oldsmobile would be gone after 2004, and the entire Pontiac vehicle lineup would be shaken up soon after. The last year for the Grand Am (and the Sunfire) would be 2005, with the G6 taking its place. With all that going on, why not offer a 30th Anniversary package? After all, the Grand Prix got a 40th Anniversary Edition for 2002. Our reviewer described this car as "leaner, trimmer and more contemporary" at the time, but made no mention of the 30th Anniversary Edition. The VIN says this car is a top-grade GT1 sedan, with an MSRP of $22,325 (that's about $39,920 in 2023 dollars). Two engines were available in the 2003 Grand Am: a 2.2-liter Ecotec four-cylinder with 140 horsepower and a 3.4-liter pushrod V6 with either 170 or 175 horsepower. This car has the 175-horse V6, complete with "Ram Air" cold-air induction. That name goes way back in Pontiac history.

Junkyard Gem: 1989 Pontiac 6000 STE AWD

During the middle to late 1980s, General Motors made a big push to grab back some of the sales swiped by makers of European luxury machinery during the previous decade. Around the top of the prestige pyramid, there was the Turin/Hamtramck-built Cadillac Allante taking aim at the Mercedes-Benz 560SEC and the super high-tech Buick Reatta trying to seduce away BMW and Jaguar shoppers; even the Riviera offered a futuristic touchscreen computer sorely lacking in anything out of Stuttgart or Bavaria. The General had a plan to take on the smaller German sporty sedans, too, and Pontiac of the "We Build Excitement" era offered a midsize sedan packed with modern hardware at a great price: the 6000 STE. Here's one of the rarest 6000 STEs of them all, an all-wheel-drive-equipped '89 found in a Denver-area yard last week. Any 6000 STE is extremely hard to find today; when I wrote about a front-wheel-drive 1987 6000 STE back in 2018, desperate owners of these cars filled my inbox with requests — sometimes demands —  for parts that continue to this day. Many of them pleaded with me to help them find an all-wheel-drive version, and now I have managed to find one at Colorado Auto & Parts in Englewood, just south of Denver (in fact, the same yard at which I shot the '87). You may recall CAP as the old-school yard whose owners built the amazing airplane-engined 1939 Plymouth pickup a few years back.  The all-wheel-drive system on the 6000 STE was introduced for the 1988 model year, and it became standard equipment on the 1989 STE. At this time, the automotive industry had taken note of the success of the idiot-proof all-wheel-drive systems offered by AMC and Audi/Volkswagen; Toyota began selling Americans all-wheel-drive Camrys, Celicas, and Corollas, while Ford offered the Tempo and Topaz with optional AWD and Subaru was just beginning to make the switch from manually-selected four-wheel-drive to genuine all-wheel-drive around that time (it took a few more years for everyone to standardize on the 4WD/AWD terminology we use today, though). The 6000 STE AWD was intended to compete with such all-wheel-drive-equipped sedans as the Audi 80 ($23,610), Audi 90 ($28,840), and BMW 325iX ($30,750); its $22,599 price tag (about $50,700 in 2021 dollars) certainly made it seem like a bargain compared to those cars. In addition to the all-wheel-drive system, 1989 6000 STE owners got a digital instrument panel and more switches and buttons than the Space Shuttle.