Category Archives: litigation

More Airbag Recalls from BMW, Toyota and Volvo

Only at BMW is the supplier Takata responsible for once again defective welds on its PSDI-X inflator. The Toyota recall involves Chinese supplier ARC Qing Hua (Xian) Automotive Company. Volvo did not name the supplier. Continue reading

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FTC Says Sage Auto Group Uses Deceptive Tactics

This is the FTC’s first action against an auto dealer for so-called “yo-yo” financing tactics: using deception or other unlawful pressure tactics to coerce consumers who have signed contracts and driven off the dealership lots into accepting a different deal. The FTC also alleges that the defendants packed extra, unauthorized charges for “add-ons,” or aftermarket products and services, into car deals financed by consumers. Continue reading

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More VW Diesel Woes – €800 Million German Suit

The lawsuit concerns losses investors suffered from the drastic drop in VW share value in shares traded on the German Deutsche Börse Xetra exchange, as a result of the VW diesel emission fraud scandal. Continue reading

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Michelin, Takata Win $80 Million Tread Belt Separation Suit

A Florida jury ruled unanimously in favor of Michelin and Takata in a highly publicized product liability case cased by tread belt separation. Continue reading

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Volkswagen to Pay Dealers $1.2 Billion over Dirty Diesels

Volkswagen Group of America says it has reached an “agreement in principle” to settle the claims of 650 VW franchise dealers in the United States relating to TDI vehicles affected by the dirty diesel fraud and other matters about the value of the franchise. Volkswagen will make cash payments – estimated at $1.2 billion – and provide unnamed “additional benefits” to the dealers to resolve past, current and future claims of losses in franchise value. Continue reading

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Porsche Executive Board Acquitted of Criminal Charges on Alleged Stock Manipulation During its failed VW Takeover Bid

This ends a long, international soap opera of litigation that also saw U.S. hedge funds sue Porsche over alleged market manipulation while acquiring Volkswagen stock. Continue reading

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Judge Issues Initial OK of VW Dirty Diesel Settlement

Under the proposed settlement, eligible customers have two choices: (1) they can sell back their vehicle to Volkswagen or terminate their lease without an early termination penalty, or, (2) keep their vehicle and receive a free emissions modification, if approved. Continue reading

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FCA Sales Reporting Crisis has Broad Industry Implications

The outcomes of both legal matters potentially have broad implications for the sales reporting practices of automakers and dealerships and how demos are subsidized.
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BP Deepwater Horizon Liabilities – GULP – $61.6 Billion

BP said yesterday in London that progress in resolving outstanding claims arising from the 2010 Deepwater Horizon accident and oil spill, the largest in U.S. history would have a final cost of $61.6 billion. Continue reading

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New Takata Tests – High Risks in Older Honda, Acura Models

The latest test data on defective Takata air bag inflators show that model-year 2001-2003 Honda and Acura vehicles have a far higher risk of ruptures during air bag deployment. Continue reading

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NHTSA Requires Rental Car Companies to Fix Open Recalls

Federal law now prohibits any company or dealer with fleets greater than 35 vehicles to rent un-repaired recalled vehicles. It also extends NHTSA’s recall authority to cover rental car companies for the first time, giving the safety agency power to investigate and punish violators. Continue reading

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$14.7 Billion Volkswagen Diesel Fraud Settlements

The plea bargain requires Volkswagen to spend up to $10.03 billion to compensate consumers under the program. In addition, the VW will spend $4.7 billion to mitigate the pollution from these cars and invest in green vehicle technology. Continue reading

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FCA US Eliminates Use of Non-Desiccated Ammonium Nitrate Takata Air-bag Inflators

Unsold vehicles that are so-equipped will be identified for customers. These customers will also be advised that the vehicles will be recalled in the future. They are not currently subject to recall. Takata inflators have been tied to at least ten deaths and more than 100 injuries so far in the United States. Continue reading

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Diesel Coffin Nails – California Court Decision on Diesels Smacks Small Fleets and Farmers over Money

A decision by the Superior Court of California in Fresno earlier this month agreed with the California Trucking Association’s request to erase a range of amendments to the state’s major rule to clean up diesel trucks and buses. Continue reading

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More Recalls for Takata Airbag Shrapnel

The numbers – tens upon tens of millions – and corresponding expenses are now so large that at least one company – General Motors – is questioning the need for the ongoing expansion of mandatory repairs by NHTSA of vehicles with Takata airbag inflators. Continue reading

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