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Business

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Auto giant boosts safety investigation team
General Motors is adding 35 product safety investigators as part of a larger restructuring of its engineering operations in response to a massive safety recall.
GM said Tuesday that the new investigators will more than double the size of its current team to 55. The company also is dividing its global engineering operations and placing a greater emphasis on whole vehicles, and their safety, instead of on individual parts.
– Associated Press

GM seeks ’09 bankruptcy shield

Blames old regime for faulty switch

– General Motors Co. and a battalion of trial lawyers are preparing for an epic court fight over whether GM is liable for the sins of its corporate past.

The company, which has an Allen County truck assembly plant and a foundry in Defiance, Ohio, is asking a U.S. bankruptcy court to shield it from legal claims for actions that took place before the company’s 2009 bankruptcy.

But lawyers who are suing GM say it shouldn’t get the usual benefits of bankruptcy protection because it concealed a deadly ignition switch problem when the court was making bankruptcy decisions.

They also say the company’s motion is part of a broader strategy to force settlements in dozens of lawsuits alleging the ignition switches caused deaths and injuries.

Late Monday, GM filed a motion in New York asking the court to bar claims that GM small cars lost value because of the ignition switch problem, which has led to the recall of 2.6 million older small cars worldwide.

The auto giant has admitted knowing about the problem for more than a decade, yet it failed to start recalling the cars until February to replace the defective switches.

The faulty switches, which GM says have caused at least 13 deaths, can move unexpectedly from the “run” position to “accessory” or “off,” shutting down the engine and knocking out power-assisted steering and brakes.

If that happens, steering can become difficult, and surprised drivers can lose control of their cars and crash. If the engine is off, the air bags won’t inflate.

GM’s behavior has brought allegations of a cover-up from members of Congress, who this month held hearings on the recall.

The National Highway Traffic Safety Administration, the government’s road safety watchdog, and the Justice Department also are investigating the automaker’s delayed recall.

The Detroit automaker contends in its motion that under the bankruptcy, which ended July 10, 2009, assets and liabilities of the old General Motors Inc. were split in two, with good assets sold under court order to “New GM” and bad ones and most liabilities going to the “Old GM,” which was left behind.

The recalled cars were made and sold by the old company.

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