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Discussion Starter #1 (Edited)
(Reuters) - A new lawsuit says General Motors Co should compensate millions of car and truck owners for lost resale value, potentially exceeding $10 billion, because a slew of recalls and a deadly delay in recalling cars with defective ignition switches has damaged its brand.

According to a complaint filed on Wednesday with the federal court in Riverside, California, GM hurt customers by concealing known defects and valuing cost-cutting over safety, leading to roughly 40 recalls covering more than 20 million vehicles this year alone.

It said this has caused a variety of late-model vehicles to lose roughly $500 to $2,600 in resale value.

Hagens Berman Sobol Shapiro, which filed the lawsuit, said the case could be worth more than $10 billion, and is the first seeking to force GM to pay a potential 15 million car and truck owners, not just those whose vehicles were recalled, for damage to its brand and reputation.

A GM spokesman, Greg Martin, declined to comment on the lawsuit. He said that many customers and analysts recognized the strength of the GM brand and that the market recognition has resulted in increased sales, transaction prices and residual values.

The lawsuit painted a "disturbing picture" of GM's approach to safety, including how "in truly Orwellian fashion" the largest U.S. automaker would encourage employees to avoid words such as "bad" and "failed," and use euphemisms such as "issue" or "condition" rather than "problem" when discussing defects.

"GM's egregious and widely publicized conduct and the never-ending and piecemeal nature of GM's recalls has so tarnished the affected vehicles that no reasonable consumer would have paid the price they did when the GM brand meant safety and success," the complaint said.

The plaintiff is Anna Andrews, a resident of La Quinta, California. She said she would not have bought her used 2010 Buick LaCrosse, or would have paid less for it, had GM done a better job of disclosing vehicle defects.

Her lawsuit seeks class-action status for people who owned or leased GM vehicles sold between July 10, 2009, and April 1, 2014, or who later sold such vehicles at cut-rate prices.

Vehicles affected by the earlier ignition-switch recalls are not included in the lawsuit. Thirteen deaths have been linked to those vehicles.

The case is Andrews v. General Motors LLC, U.S. District Court, Central District of California, No. 14-01239.
 

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That sounds like a smart lawsuit. Sue them out of their company and receive.. nothing for it, if they declare bankrupcy. Thought GM wasn't doing all too well at the moment anyway, financially..
 

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Discussion Starter #3
The fun continues for GM stop sell order

GM Tells U.S. Dealers to Stop Selling Cruze Sedans Over Airbag Issue

General Motors Co (GM) on Wednesday said that it has told its North American dealers to stop selling new and used Chevrolet Cruze sedans from model years 2013 and 2014 because of a potential problem with the air bags.

The Cruze sedans are equipped with air bags supplied by Takata Corp, a GM spokesman said. Potentially faulty airbags supplied by Takata have led to the recall of about 10.5 million vehicles worldwide, many of them made by Toyota Motor Corp and Honda Motor Co.

GM has not at this point recalled the Cruze sedans in consumer hands and is investigating how many vehicles have a faulty part for the air bags, said a GM spokesman.

The company said it does not yet know whether there have been any crashes, injuries or deaths related to this issue.

The Cruze is GM's top-selling car in North America. GM has built about half a million 2013 and 2014 model year Cruze sedans since October 2012.

The stop-sales order follows a series of safety-related problems that have plagued GM since early this year. So far this year, GM has issued 44 recalls covering about 20 million vehicles globally. Among those recalls is one for older model Chevrolet Cobalt and other GM small cars with faulty ignition switches, which have been linked to the deaths of at least 13 people.

"Certain vehicles may be equipped with a suspect driver's air bag inflator module that may have been assembled with an incorrect part," said a GM statement.

The stop-sales order for Cruze was first reported by Automotive News.
 

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What a mess these recalls in the US. Two weeks ago I was in Boston,MA and we had to wait 3 hours at the airport counter to get our pre-booked rental car.

All this because all the rental car companies decided to remove the cars impacted by recalls all at once. I guess to avoid any issue with their customers. Great idea :tu:

All this remind me of two things... Ralph Nader... and the movie Fight Club...

A new car built by my company leaves somewhere traveling at 60 mph. The rear differential locks up. The car crashes and burns with everyone trapped inside. Now, should we initiate a recall? Take the number of vehicles in the field, A, multiply by the probable rate of failure, B, multiply by the average out-of-court settlement, C. A times B times C equals X. If X is less than the cost of a recall, we don't do one.
 

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Discussion Starter #6
more GM recalls

Also covered in today's announcement: Transmission software in nearly 400,000 trucks and SUV's that needs updating so that the vehicles don't slip into neutral on their own. Vehicles covered are four wheel drive versions of the 2014-2015 Silverado and GMC Sierra models; 2015 Tahoes and Suburbans; and the 2015 GMC Yukon and Yukon XL.
In addition, GM says it will inspect, and replace if necessary, the windshield wiper assemblies in about 5,000 2013-2014 Caprice police cars and SS sport sedans. The company says if gears get stripped the motors may fail and the wipers might not operate.
Finally, GM says it will replace the two rear shock absorbers in nearly 2,000 2014 model year Corvettes to repair a weld that could potentially lead to failure of the shock absorbers.
 

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Discussion Starter #7
GM adds 8.23 million cars to ignition-switch recall

DETROIT, June 30 (Reuters) - General Motors Co on Monday widened the list of older models it is recalling for potentially deadly ignition switches, adding 8.23 million compact and midsize sedans that it has linked to seven crashes and three fatalities.

GM this year has recalled 29 million vehicles, more than half of them because of potentially defective ignition switches.

Earlier on Monday, GM provided details of a compensation fund set up to provide at least $1 million to victims of crashes tied to defective switches in older compact cars, including the Chevrolet Cobalt and Saturn Ion.

GM said on Monday it would increase by $500 million a second-quarter charge to cover the cost of the recalls. So far this year, the writedowns are expected to total $2.5 billion.

GM did not say how it would fix the latest batch of switches, but as with earlier cases it urged owners to remove all items, including the fob, from key rings, leaving only the ignition key.

GM said the switch could be turned off because of "inadvertent key rotation." In turn, that could shut off the engine and cut power to steering, brakes and air bags.
 

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Discussion Starter #8
another today 2 hrs ago:

GM RECALLS ANOTHER 7.6 MILLION VEHICLES, MODELS GOING BACK TO 1997The U.S. flag flies at the Burt GM auto dealer in Denver June 1, 2009.

General Motors is recalling another 7.6 million vehicles in the U.S.

Including vehicles recalled in Canada, the company is recalling 8.45 million vehicles.

The latest recall includes cars from the 1997 to 2014 model years.

GM also said it expects to take a charge of up to $1.2 billion in Q2 due to this recall. This amount is in addition to the previously disclosed $700 million charge.

This chart from GM shows the vehicles involved in the last round of recalls.

6 recalls in June

 
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