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GM Files for Protection From Non-Injury Class Action, Personal Suits

Motor Trend logo Motor Trend 4/22/2014 Erick Ayapana

General Motors hopes to reduce the amount of legal action it must take from the ignition recall by blocking lawsuits that are based only on alleged economic losses. The automaker today filed a motion with the U.S. Bankruptcy Court to essentially block the growing number of class action and individual lawsuits. GM points out that the motion does not block lawsuits involving accidents, death, or injuries.

“This motion to enforce involves only litigation in which the plaintiffs seek economic losses against New GM relating to an Old GM vehicle or part, including, for example, for the claimed diminution in the vehicle’s value, and for loss of use, alternative transportation, child care or lost wages for time spent in seeking prior repairs,” according to the filing obtained by The Detroit News. “Those types of claims were never assumed by New GM.”

2007 Chevrolet Cobalt Coupe SS© Provided by MotorTrend 2007 Chevrolet Cobalt Coupe SS

GM also states it is still committed to repairing the defective ignition switches, which now involves over 2 million vehicles including the Chevrolet Cobalt, Pontiac G6, and the Saturn Sky. The automaker was scheduled to notify all owners this week and will begin replacing the faulty switches when the parts become available. The affected switches can move from the “run” to the “off” position if there’s too much weight on the ignition switch or if the car hits a big bump. At least 13 deaths have been attributed to the defect.

At least 54 class action and individual lawsuits have been filed against GM, The Detroit News reports. CEO Mary Barra earlier this month provided her testimony to the U.S. Congress about the way her company handled the ignition defect. Shortly after the hearing, GM placed two engineers on paid administrative leave after an investigation found that they may be responsible for designing and approving the faulty switches.

Source: GM, The Detroit News


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