$1-Billion Suit Alleges Defects in GM Diesel Cars and Trucks

More than 100 owners of General Motors diesel cars and light trucks filed a $1-billion federal lawsuit Thursday alleging that the auto maker sold vehicles with defective engines.

The suit claims that owners of 1981-1985 GM vehicles with 5.7-liter, V-8 diesel engines were saddled with expensive engine repairs and that engine defects reduced the resale value of the vehicles.

The suit was filed by 101 plaintiffs in South Carolina, but could ultimately cover 600,000 people who bought GM diesel cars, said Beverly C. Moore Jr., an attorney for the car owners.

It claims that GM violated the implied warranty of product serviceability by selling engines with flawed designs. The Center for Auto Safety in Washington, a consumer group founded by Ralph Nader, helped organize the class-action suit.

GM spokesman David Hudgens said in Detroit that the company had not seen the suit and would not comment. But he said, “Diesels in general have lost value.”

Owners “are alleging that, first, some of them incurred out-of-pocket repair costs as a result of diesel engine failure, or certain components of the engine,” Moore said. “The rest of the people are arguing that this inherent defect contributed to a drop in resale value.”

GM agreed in a 1984 out-of-court settlement to pay about 480,000 owners of 1977-1980 diesel models about $22.5 million.