Saturn VTi Transmission Proposed Settlement

WHO IS IN THE CLASS

The Class consists of all persons who are residents of the United States and who purchased a new or used 2002, 2003, 2004 or 2005 model year Saturn VUE or 2003 or 2004 model year Saturn ION equipped with a continuously variable VTi transmission ("Vehicles"). Excluded from the Class are (i) any person, firm, trust, corporation, or other entity that purchased Class Vehicles for resale or fleet purposes (including without limitation any authorized Saturn Retailer) and (ii) any person who has filed a lawsuit against GM seeking damages for alleged personal injury or property damage in connection with a VTi transmission.

RELIEF AVAILABLE TO CLASS MEMBERS

If the Court approves the proposed settlement, the benefits available to Class Members will include the following:

(1) Reimbursement for out-of-pocket expenses relating to the previous inspection, repair, or replacement of a malfunctioning VTi transmission, including related towing and rental car expenses, subject to specific time and mileage limitations ("Past Reimbursable Expenses");

(2) Reimbursement for loss associated with a previous trade-in of a Class Vehicle with VTi transmission malfunction at the time of trade-in ("Trade-In with Transmission Malfunction Reimbursement"), subject to specific time and mileage limitations and repair estimate documentation; and

(3) Reimbursement for out-of-pocket expenses relating to the future inspection, repair or replacement of a malfunctioning VTi transmissions, including related towing and rental care expenses, subject to specific time and mileage limitations ("Future Reimbursable Expenses").

Under the terms of the proposed settlement, reimbursable expenses will include (a) costs to inspect, repair or replace a malfunctioning VTi transmission, (b) costs to rent a replacement vehicle or secure other transportation while the Class Vehicle's malfunctioning VTi transmission is/was being inspected, repaired or replaced, (c) costs to tow or transport the Class Vehicle to the place(s) where the VTi transmission is/was inspected, repaired or replaced, and (d) costs relating to the trade-in of a Class Vehicle with a malfunctioning VTi transmission at the time of trade-in, as further limited and defined below.

To be reimbursable, the expense must be incurred (1) within 125,000 miles of the original retail sale or lease of the Class Vehicle and (2) within the time limitations set forth in Paragraph B (if applicable) and Chart A below.

A. Past Expense Reimbursement

GM will reimburse any Class Member who incurs Past Reimbursable Expenses on or before the date of Final Judgment (i.e., the date of final approval of the settlement by the United States District Court) based on the percentages shown in Chart B below. To obtain reimbursement, the Class Member must submit a Claim Form and the Saturn Retailer or other repair shop bills showing the date, mileage and amount of the repair costs paid by the Class Member and, if applicable, receipts showing the rental car, alternative transportation or towing costs incurred by the Class Member.

All claims for Past Expense Reimbursement will have to be submitted no later than one year after the Effective Date of the proposed settlement, as more specifically defined in the Stipulation of Settlement, but essentially the date upon which the Final Judgment of the Court approving the settlement becomes final and is no longer subject to any possible appeal. This deadline will be clearly stated on the Claim Forms that Class Members will receive after the Effective Date.

B. Past Trade-In With Transmission Malfunction Reimbursement

To claim reimbursement if the Class Member traded in a Class Vehicle with a VTi transmission malfunction, the Class Member must submit a Claim Form and provide contemporaneous dealer documentation including (1) a sales contract including the Vehicle Identification Number ("VIN") of the Class Vehicle that was traded in and (2) a contemporaneous VTi transmission repair estimate referencing the same VIN dated on or before the trade-in date. The reimbursement to the Class Member shall equal the repair estimate multiplied by the applicable percentage shown on Chart B based on the Vehicle's mileage and the Class Member being either a New or Used Vehicle Purchaser. Class Members will be entitled to seek reimbursement of trade-in losses only upon proof that the Class Vehicle was traded-in before the date that Class Notice is mailed to potential Class Members.

C. Future Expense Reimbursement

GM will reimburse any Class Member who incurs Future Reimbursable Expenses after the date of Final Judgment based on the percentages shown in Chart B below, provided that the Class Member incurs the expense and submits the claim within the time limits set forth in Chart A below. To obtain reimbursement, the Class Member must submit a Claim Form and the Saturn Retailer or other repair shop bills showing the date, mileage and amount of the repair costs paid by the Class Member and, if applicable, receipts showing the rental car, alternative transportation or towing costs incurred by the Class Member. GM shall use, or cause any claims administrator to use, its best efforts to issue checks for Future Reimbursable Expense to Class Members within ten (10) General Motors business days of receipt of the Claim Form with all required supporting documentation. Upon written request by the Class Member, GM shall also issue checks for Future Expense Reimbursement payable jointly to the Class Member and a Saturn Retailer or other repair shop specified by the Class Member.

CHART A

CHART B

For each VTi transmission repair or replacement using genuine Saturn or GM parts, such replacement parts will be covered by the standard GM Service Parts Operations warranty for a period of 12 months or 12,000 miles, whichever comes first.

For a claim involving a Past Reimbursable Expense, a Trade-in With Transmission Malfunction Expense Reimbursement or a Future Reimbursable Expense incurred before the Effective Date of the Settlement, GM will have the right to reduce the amount to be reimbursed by any amount previously paid by GM or any affiliate of GM for that same repair or trade-in expense. GM, however, will have no right to reduce the amount of any other claim for Future Reimbursable Expenses subject to appropriate verification of the amount of such expenses and the Class Member's eligibility for reimbursement. Notwithstanding the foregoing, GM shall have the right to enforce fully the terms of any release, judgment, arbitration award or other adjudication obtained in connection with any Class Member's prior claim relating to the alleged malfunction or failure of a VTi transmission..

If the Court grants final approval of the settlement on February 17, 2009, you will receive another notice that will include the Claim Form and explain how you can claim benefits under the settlement.  For more information regarding the proposed class action settlement, please click here, contact us or call us at (618) 251-2498.

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[1]  Mileage at time Past or Future Reimbursable Expense is incurred.

[2]  To qualify for reimbursement as a "new" vehicle purchaser, the Class Member must be the original retail purchaser or lessee of the Class Vehicle.