DAILY AUTOMOTIVE NEWS HEADLINES:

GM, again, faces $1 billion fight over bankruptcy accord

NEW YORK -- An independent trust handling General Motors Co.’s old bankruptcy claims reached a new settlement with customers who sued the automaker years ago over faulty ignition switches -- a deal that could force GM to give up more than $1 billion in new stock if a judge approves it.

The resolution of claims predating GM’s 2009 bankruptcy was reached Wednesday over hundreds of lawsuits alleging that loose ignition switches could cause air-bag failures and fatalities, according to a filing Wednesday in U.S. Bankruptcy Court in Manhattan by lawyers for Wilmington Trust.

Under the deal, the trust will contribute $15 million to the settlement and agree to accept more claims from owners of defective vehicles. If a judge values those claims at $10 billion or more, the figure would be added to previously accepted claims to push the total beyond a key $35 billion threshold. That would then trigger a provision of the 2009 sale to force GM to contribute so-called adjustment shares to help pay the claims. read more »

Ford Given Massive Fine In Australia Over Its Crappy PowerShift Transmission

Ford’s PowerShift transmission has had a rough go of it since being introduced in 2010, mainly for being shitty. It’s also been the subject of lawsuits and, now, a hefty 10 million Australian dollar fine handed out to Ford by the Australian government, which called the way Ford responded to consumer complaints over the transmission there “unconscionable.”

The PowerShift, which you can still get on the Focus and the Fiesta (well, for now) has been massively improved after a wealth of complaints, but those improvements didn’t come quick enough in Australia, where the government says that Ford mistreated customers who complained between May 2015 and February 2016. Among the complaints were shuddering, jerking, and excessive noise on Focuses, Fiestas, and EcoSports. read more »