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Category Archives: litigation
GM Recalls 1.14 Million V8 Engines for Failures and Fires
General Motors is recalling more than a million V8 engines used in 2021 – 2024 model year Cadillac Escalade and Escalade ESV, Chevrolet Silverado 1500, Suburban, and Tahoe, and GMC Sierra 1500, Yukon, and Yukon XL vehicles equipped with the 6.2L V8 gas engine (RPO L87). The connecting rod and/or crankshaft engine components in these vehicles may have manufacturing defects that can lead to engine damage and engine failure. This safety defect recall follows years of GM investigating the problem and concluding that no problem existed. However, the National Highway Traffic Safety Administration (NHTSA) continued its investigation based on persistent complaints from users. NHTSA had an active engineering analysis open when GM made the recall decision.
In the required safety defect recall filing – only some of it was made public by NHTSA, GM said “Engine teardown analysis identified two primary root causes, both of which are attributable to supplier manufacturing and quality issues: (1) rod-bearing damage from sediment on connecting rods and crankshaft-oil galleries; and (2) out of specification crankshaft dimensions and surface finish.” The supplier will remain publicly unknown until all the documents are made public, which is likely next Monday in AutoInformed’s experience. Continue reading
Posted in auto news, customer satisfaction, litigation, manufacturing, news analysis, quality, recalls
Tagged auto industry commentary, autoinformed.com, automotive blog, Automotive news and analysis, GM 6.2-liter L87 V8 engine failure recall, GM recall number N252494000, Ken Zino, NHTSA recall 25V274 or 25V-274., X @KenAutoinformed
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Hino Motors Fined $1.6B for Emissions Fraud
The U.S. Environmental Protection Agency (EPA) and the Department of Justice (DOJ) have announced that U.S. District Court Judge Mark A. Goldsmith for the Eastern District of Michigan has accepted Hino Motors, Ltd.’s guilty plea to a one-count criminal information charging it with having engaged in a multi-year criminal conspiracy to defraud both the United States government and American consumers and illicitly smuggle goods into the country. Continue reading
Posted in auto news, environment, fools 'n frauds, litigation, news analysis, results, transportation
Tagged Adam Gustafson, auto industry commentary, autoinformed.com, automotive blog, Automotive news and analysis, FBI Detroit Field Office, Jeffrey Hall, Julie Beck, Justice Department Environment and Natural Resources Division, Ken Zino, U.S. District Court Judge Mark A. Goldsmith, X @KenAutoinformed
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HF Sinclair Plea Deal – Climate- and Health-Harming Emissions
The Justice Department, the Environmental Protection Agency (EPA) and the New Mexico Environment Department (NMED) announced today a proposed settlement with HF Sinclair Navajo Refining LLC, an HF Sinclair Corp. subsidiary, resolving alleged Clean Air Act and New Mexico Air Quality Control Act violations at the company’s oil refinery in Artesia, New Mexico. The refinery is adjacent to a community overburdened by pollution. This settlement is part of the Justice Department and EPA’s ongoing commitment to address unlawful pollution in historically marginalized and dis-proportionally impacted communities.
“This settlement reinforces the United States’ commitment to protect communities from illegal refinery benzene and VOC emissions,” said Acting Assistant Attorney General Katherine E. Konschnik of the Justice Department’s Environment and Natural Resources Division (ENRD). “Under the settlement, the refinery will make significant capital investments in pollution controls and implement additional programs to improve air quality and reduce health impacts on the residents of Artesia, including the students at Roselawn Elementary School.” Continue reading
Posted in environment, global warming, litigation, news, news analysis, public health
Tagged Artesia New Mexico, auto industry commentary, autoinformed.com, automotive blog, Automotive news and analysis, clean air act, doj, epa, hazardous air pollutants, HF Sinclair Corp, HF Sinclair Navajo Refining, Katherine E. Konschnik, Ken Zino, New Mexico Air Quality Control Act, nitrous oxides, sulfur dioxide, volatile organic compounds, X @KenAutoinformed
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Toyota’s Hino Motors Emissions Fraud – $1.6B Plea Deal
The U.S. Justice Department, Environmental Protection Agency (EPA), FBI, Customs and Border Protection (CBP), Department of Transportation’s Office of Inspector General (DOT-OIG), National Highway Traffic Safety Administration (NHTSA), and State of California reached criminal and multiple civil resolutions, valued at more than $1.6 billion, with Hino Motors Ltd., Hino Motors Manufacturing U.S.A., Inc. and Hino Motors Sales U.S.A., Inc. (collectively, Hino) for violations related to the submission of false and fraudulent engine emission testing and fuel consumption data to regulators and the illicit smuggling of engines into the United States. These resolutions are subject to approval by the U.S. District Court for the Eastern District of Michigan.
“Hino knew the requirements that engines must meet to be certified to operate in the United States, yet it falsified data for years to skirt regulations,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD) yesterday. “Hino’s actions led to vast amounts of excess air pollution and were an egregious violation of our nation’s environmental, consumer protection and import laws.” Continue reading
Posted in auto news, car sharing, engineering, environment, fools 'n frauds, global warming, litigation, milestones, news analysis, public health, transportation
Tagged auto industry commentary, autoinformed.com, automotive blog, Automotive news and analysis, California Department of Justice, carb, department of justice, epa, fbi, Hino Motors Ltd., Hino Motors Manufacturing U.S.A., Hino Motors Sales U.S.A., Justice Department case 198-01902, Ken Zino, Toyota subsidiary Hino Motors, X @KenAutoinformed
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Grass Isn’t Always Greener – SEC Fraud Charges Joecool
The Securities and Exchange Commission today announced litigated charges against Joecool.com, LLC and its CEO, Joseph Ariel Haber, for alleged misappropriation and misuse of investor funds, as well as false and misleading statements to investors. There are also charges against recidivist securities law violator Robert Tye Cournoyer for his alleged false and misleading statements to investors and for acting as an unregistered broker.
The SEC’s complaint, filed in federal district court in Nevada, Case No. 25-cv-00076, alleges that between at least November 2019 and February 2024, Joecool raised approximately $2 million from investors through an unregistered securities offering by representing that investor funds would be used to produce, package, promote, and sell various CBD-infused coffee products. The SEC requested “a trial by jury on all claims so triable.” Continue reading
Posted in fools 'n frauds, litigation, news, news analysis, people
Tagged auto industry commentary, autoinformed.com, automotive blog, Automotive news and analysis, Joecool.com fraud charges, Joseph Ariel Haber, Ken Zino, Robert Tye Cournoyer, Securities and Exchange Commission, Securities Exchange Act of 1934, securities law violations, X @KenAutoinformed
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Seventh Big Rigging Guilty Plea in Michigan Asphalt Industry
The former president of a Michigan asphalt paving company pleaded guilty last Wednesday for his role in a conspiracy to rig bids for asphalt paving services contracts in Michigan, the U.S. Justice Department said today. Documents filed in the U.S. District Court for the Eastern District of Michigan, show that Timothy Baugher, former president of Pontiac-based Asphalt Specialists LLC (ASI), conspired with F. Allied Construction Company Inc. (Allied), and employees from those companies to rig bids in each other’s favor. Baugher participated in the conspiracy from July 2017 through May 2021.
Wednesday’s guilty plea is the 10th in the Antitrust Division’s ongoing investigation into collusion in the Michigan asphalt paving industry. Baugher’s former employer, ASI, and another former ASI executive also pleaded guilty for their participation in the conspiracy with Allied in January 2024. Allied and two of its executives previously pleaded guilty in August 2023 for their participation in the conspiracy. On Aug. 15, 2024, ASI was sentenced to pay a fine of $6,500,000.
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Posted in auto news, car sharing, fools 'n frauds, litigation, news analysis, people, transportation
Tagged Asphalt Specialists LLC, auto industry commentary, autoinformed.com, automotive blog, Automotive news and analysis, Doha Mekki, F. Allied Construction Company, Ken Zino, Timothy Baugher, U.S. Justice Department Antitrust Division, X @KenAutoinformed
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EPA Fines Iowa 80 and Joplin 44 Truck Stops
Two truck stops in Iowa and Missouri – Iowa 80, advertised as “the world’s largest truck stop,” and Joplin 44 – agreed to pay a combined $390,784 to resolve alleged violations of the federal Clean Water Act, the U.S. Environmental Protection Agency said today. According to EPA, the truck stops failed to comply with regulations intended to protect water bodies from petroleum discharges.
“This settlement represents the federal government’s commitment to protecting our nation’s waterways and creating a level playing field for businesses who are complying with the law,” said EPA Region 7 Enforcement and Compliance Assurance Division Director David Cozad. Continue reading
Posted in auto news, car sharing, environment, litigation, news analysis, transportation
Tagged auto industry commentary, autoinformed.com, automotive blog, Automotive news and analysis, David Cozad, EPA Region 7, Iowa 80, Joplin 44, Ken Zino, SPCC, Spill Prevention Control and Countermeasure plans, X @KenAutoinformed
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Ram ProMaster Diesel Engines – CARB Fines FCA $4.2M
The California Air Resources Board (CARB) said this week it has reached a settlement agreement with FCA US LLC (FCA) of Auburn Hills, Mich., for $4,185,820 for violations of CARB’s air quality regulations. The FCA vehicles concerned include model year (MY) 2014 through 2016 Ram ProMaster 1500, 2500 and 3500 vehicles equipped with 3-liter inline-4 diesel engines.*
“CARB’s robust compliance testing ensures that auto manufacturers sell the exact vehicles that received certification for sale within California, without alterations made to skirt the state’s regulations and release excess emissions that harm air quality and public health,” said CARB Executive Officer Dr. Steven Cliff. Continue reading
Posted in auto news, awards, car sharing, environment, fools 'n frauds, fuel economy or emissions, litigation, news analysis, public health, recalls
Tagged 2014 - 2016 Ram ProMaster 1500 and 2500 and 3500 trucks, auto industry commentary, autoinformed.com, automotive blog, Automotive news and analysis, California Air Resources Board, Death of the diesel, diesel emissions compliance, Dr. Steven Cliff, emissions defeat-device software, FCA US, Ken Zino, Marine Vessel Speed Reduction Incentive Program, oxides of nitrogen or NOx emissions, X @KenAutoinformed
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Clean Air Act – Power Performance Enterprises Fined
Louisiana-based company Power Performance Enterprises Inc. (PPEI) and its president and owner, Kory B. Willis, were sentenced yesterday in federal court in Sacramento, California, for violating and conspiring to violate the Clean Air Act by tampering with the monitoring devices … Continue reading
Posted in aftermarket, auto news, awards, car sharing, electronics, environment, fools 'n frauds, fuel economy or emissions, litigation, news analysis, public health
Tagged Assistant Attorney General Todd Kim, auto industry commentary, autoinformed.com, automotive blog, Automotive news and analysis, Clean Air Act tampering, DOJ Environment and Natural Resources Division, Ken Zino, Kory B. Willis, Power Performance Enterprises, U.S. Attorney Phillip A. Talbert, U.S. District Court Judge John A. Mendez, X @KenAutoinformed
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Florida Man Pleads Guilty to Odometer Tampering
Drew Mitchell Schreiber, of Orlando, Florida, pleaded guilty yesterday in the U.S. District Court for the Middle District of Florida to three counts of odometer tampering, The U.S. Justice Department said today. In all, Schreiber sold 140 rolled-back vehicles. Because many of these vehicles were more than 10 years old, Schreiber obtained so-called “exempt” titles that did not reveal the actual mileage of the vehicles.
“Just because a motor vehicle may be exempt from mileage recording on a title does not give a dealer the right to roll back odometers,” said Principal Deputy Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “With vehicles remaining in use for longer periods of time, many Americans rely on older vehicles as their primary mode of transportation. Used car buyers deserve peace of mind knowing that the odometer reading in their vehicle is correct.” Continue reading
Posted in aftermarket, auto news, car sharing, fools 'n frauds, litigation, people
Tagged auto industry commentary, autoinformed.com, automotive blog, Automotive news and analysis, Drew Mitchell Schreiber, Ken Zino, NHTSA Office of Odometer Fraud Investigation, odometer tampering, Southeastern Credit Union Solutions, U.S. Justice Department Consumer Protection Branch, X @KenAutoinformed
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DOJ – Cruise Deferred Prosecution for Pedestrian Crash
GM’s Cruise autonomous vehicle company* based in San Francisco, fixed a criminal charge in federal court for providing a false record to National Highway Traffic Safety Administration (NHTSA) with the intent to impede, obstruct, or influence the investigation of a crash involving one of Cruise’s autonomous vehicles. Cruise has agreed to resolve the charge through a deferred prosecution agreement and payment of a $500,000 criminal fine.
“Federal laws and regulations are in place to protect public safety on our roads. Companies with self-driving cars that seek to share our roads and crosswalks must be fully truthful in their reports to their regulators,” said Martha Boersch, Chief of the Office of the U.S. Attorney’s Criminal Division. Continue reading
Posted in auto news, autonomous vehicles, connected vehicles, litigation, mobility company, news analysis, quality, safety, software defined vehicles, software defined vehicles
Tagged 000 criminal fine, auto industry commentary, autoinformed.com, automotive blog, Automotive news and analysis, Cruise $500, Cruise Deferred Prosecution agreement, Ken Zino, Martha Boersch, National Highway Traffic Safety Administration, X @KenAutoinformed
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NLRB Rules Against Anti-Union Captive-Audience Meetings
The National Labor Relations Board today issued a decision in Amazon.com Services LLC, ruling that an employer violates the National Labor Relations Act by requiring employees under threat of discipline or discharge to attend meetings in which the employer expresses its views on unionization. Members Prouty and Wilcox joined Chairman McFerran in issuing the decision. Member Kaplan – a Trump appointee – dissented. Continue reading
Posted in labor issues, litigation, news analysis, people, shows and events
Tagged Amazon.com Services anti-union captive meetings, auto industry commentary, autoinformed.com, automotive blog, Automotive news and analysis, David M. Prouty, Gwynne A. Wilcox, Ken Zino, Lauren McFerran, Marvin E. Kaplan, National Labor Relations Board, nlrb, X @KenAutoinformed
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American Airlines and JetBlue Alliance Blocked
The U.S. Court of Appeals for the First Circuit last Friday affirmed the U.S. District Court for the District of Massachusetts’ ruling in favor of the Justice Department and the Attorneys General of six states and the District of Columbia in their civil antitrust lawsuit to stop the Northeast Alliance between American Airlines and JetBlue. Continue reading
Posted in aviation, customer satisfaction, litigation, news, news analysis, transportation
Tagged antitrust, Attorney General Merrick B. Garland, auto industry commentary, autoinformed.com, automotive blog, Automotive news and analysis, department of justice, jetblue, Ken Zino, sherman act, Spirit Airlines, X @KenAutoinformed
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Shawn Fain to Speak to Stellantis UAW Membership Tonight
Yesterday, the UAW filed federal unfair labor practice charges at the National Labor Relations Board over what it says is Stellantis’ illegal refusal to provide information about the company’s plans regarding product commitments it made in the UAW’s 2023 collective bargaining agreement. Several UAW locals covering thousands of members have also filed contract grievances over the company’s attempt to move Dodge Durango production out of the United States, in violation of the UAW’s national agreement.
“In our 2023 contract, we won major gains, including a commitment to reopen an idled assembly plant in Belvidere, Illinois, and to build the Dodge Durango in Detroit. We also won the right to strike over those commitments, if we have to,” said UAW President Shawn Fain. “Now, Stellantis wants to go back on the deal. As a united UAW, we intend to enforce our contract, and to make Stellantis keep the promise.” Fain will address the UAW membership on Facebook Live tonight. Continue reading
Posted in auto news, economy, labor issues, litigation, manufacturing, news analysis
Tagged auto industry commentary, autoinformed.com, automotive blog, Automotive news and analysis, Dodge Durango plant location, Ken Zino, National Labor Relations Board, Shawn fain, unfair labor practice charges, X @KenAutoinformed
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CARB – U.S. Senate Dumping Clean Air Act Waivers Illegal
The California Air Resources Board Chair Liane Randolph today reacted to a vote by the U.S. Senate purporting to disapprove California’s Clean Air Act waivers for Advanced Clean Cars II, Advanced Clean Trucks and Heavy-Duty Engine and Vehicle Omnibus using the Congressional Review Act (CRA).
“California profoundly disagrees with today’s unconstitutional, illegal and foolish vote attempting to undermine critical clean air protections. It’s an assault on states’ rights the federal administration claims to support that puts national air quality standards out of reach and will have devastating effects for the 150 million Americans who breathe unhealthy air every day,” said CARB Chair Liane Randolph. Continue reading →