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Volkswagen finds itself in legal trouble once again as three U.S. states - Massachusetts, Maryland, and New York - have filed separate lawsuits over the diesel emission scandal. The lawsuits allege that the automaker undertook a massive cover-up of the illegal software and was orchestrated by high-level executives - including the former CEO. “The idea that this level of fraud could take place and involve so many people at such high levels of a major international corporation is appalling,” said New York Attorney General Eric Schneiderman at a press conference this week. The New York Times, Road & Track, and Car and Driver got their hands on the New York lawsuit and it is quite damning. The suit cites internal documents, staff emails, interviews, and investigation as to how Volkswagen got to this point. The defeat device was originally developed back in 2004 by Audi. Internally known as "Acoustic Function," the system would reduce emissions by turning off a system called "Pilot Injection" Pilot Injection would inject additional fuel during engine start to help reduce diesel clatter This system would be used on the European market 3.0L TDI V6 from 2004 to 2006 [*]In 2006, Volkswagen was trying to figure out how to make the 2.0L TDI four-cylinder meet U.S. emission standards Engineers apparently looked at selective catalytic reduction (SCR) that uses urea injection to reduce nitrogen oxide (NOx) emissions. This was thrown out due to needing a separate tank for the urea and paying Mercedes-Benz for a license to use it. Instead, the decision was made to use a lean-trap system. This system works by trapping particulates in a soot filter. The particulates would be burned off by running the engine in a fuel-rich mode. This system had a major problem as the filter would prematurely fail due to excess build up. Thus the fateful decision of employing the "Acoustic Function" was used. [*]The complaint also notes that communications between executives within each brand, along with lateral moves of employees and executives between the brands meant that everyone knew about the use/possible use of this device in various vehicles. We highly recommend checking out the pieces from the sources below as we only scratched the surface on this. Source: Car and Driver, The New York Times, Road & Track View full article -
Volkswagen finds itself in legal trouble once again as three U.S. states - Massachusetts, Maryland, and New York - have filed separate lawsuits over the diesel emission scandal. The lawsuits allege that the automaker undertook a massive cover-up of the illegal software and was orchestrated by high-level executives - including the former CEO. “The idea that this level of fraud could take place and involve so many people at such high levels of a major international corporation is appalling,” said New York Attorney General Eric Schneiderman at a press conference this week. The New York Times, Road & Track, and Car and Driver got their hands on the New York lawsuit and it is quite damning. The suit cites internal documents, staff emails, interviews, and investigation as to how Volkswagen got to this point. The defeat device was originally developed back in 2004 by Audi. Internally known as "Acoustic Function," the system would reduce emissions by turning off a system called "Pilot Injection" Pilot Injection would inject additional fuel during engine start to help reduce diesel clatter This system would be used on the European market 3.0L TDI V6 from 2004 to 2006 [*]In 2006, Volkswagen was trying to figure out how to make the 2.0L TDI four-cylinder meet U.S. emission standards Engineers apparently looked at selective catalytic reduction (SCR) that uses urea injection to reduce nitrogen oxide (NOx) emissions. This was thrown out due to needing a separate tank for the urea and paying Mercedes-Benz for a license to use it. Instead, the decision was made to use a lean-trap system. This system works by trapping particulates in a soot filter. The particulates would be burned off by running the engine in a fuel-rich mode. This system had a major problem as the filter would prematurely fail due to excess build up. Thus the fateful decision of employing the "Acoustic Function" was used. [*]The complaint also notes that communications between executives within each brand, along with lateral moves of employees and executives between the brands meant that everyone knew about the use/possible use of this device in various vehicles. We highly recommend checking out the pieces from the sources below as we only scratched the surface on this. Source: Car and Driver, The New York Times, Road & Track -
Kenneth Fineberg finds himself helping out another automaker in crisis. Volkswagen announced yesterday they have brought in Fienberg to work on and oversee a new claims program for owners of Volkswagen models involved in the diesel emission scandal. “We are pleased to announce the retention of Kenneth Feinberg. His extensive experience in handling such complex matters will help to guide us as we move forward to make things right with our customers,” said Michael Horn, President and CEO, Volkswagen Group of America in a statement. Automobile Magazine was on a conference call with Feinberg to discuss his involvement and plans. Fineberg made it clear this was going to be a tough task as he'll have to figure out what is a legitimate claim and what is the appropriate remedy for those who apply in the program. "The issues are always the same: Who's eligible to file a claim? What is the remedy? What are the proof requirements when somebody commits a claim?" said Feinberg. "What is an appropriate remedy that would give the car owner total peace. And that is a very, very challenging question which we certainly can't answer yet." Feinberg said on the call he expects as many as 500,000 potential claimants in the U.S. The hope for this program is to consolidate the number of lawsuits against Volkswagen. At the moment, there are more 500 lawsuits against Volkswagen that are related to the diesel emission scandal. Feinberg didn't give a timeline as to when we could see a claims program go live. "This is going to take some time. But we'll begin as soon as possible," said Feinberg. Before being brought in by Volkswagen, Feinberg was the administrator for General Motors' ignition switch compensation fund for victims and family of victims. Under his watch, the fund determined that 124 people were killed by the ignition switch turning off unexpectedly and causing the car to lose power. The fund also determined that 275 people were injuried because it. Source: Automobile Magazine, Volkswagen Press Release is on Page 2 Volkswagen Announces Engagement of Kenneth R. Feinberg to Design and Administer a Claims Program Related to the TDI Emissions Compliance Issue Herndon, VA (December 17, 2015) Volkswagen announced today that it has retained attorney Kenneth R. Feinberg, managing partner of The Law Offices of Kenneth R. Feinberg, PC, to design and administer an independent claims resolution program to address claims related to the 2.0L and 3.0L TDI vehicles affected by the emissions compliance issue. Volkswagen believes Mr. Feinberg will develop an independent, fair and swift process for resolving these claims. “We are pleased to announce the retention of Kenneth Feinberg. His extensive experience in handling such complex matters will help to guide us as we move forward to make things right with our customers,” said Michael Horn, President and CEO, Volkswagen Group of America. Mr. Feinberg stated that he will “commence work immediately designing an independent claims process that will meet claimants’ needs.” He added that “we hope to have a claims program designed as expeditiously as possible. In order to do so, we will need the input not only of Volkswagen, but also vehicle owners, their lawyers, and other interested parties.” Mr. Feinberg is a well-respected attorney with extensive experience managing high-profile issues and many of the nation’s most challenging legal matters. He was appointed to two presidential commissions by Presidents Reagan and Clinton and administered several other significant programs. More information on Kenneth Feinberg can be found at http://feinberglawoffices.com/ Volkswagen continues to fully cooperate with the U.S. Environmental Protection Agency (EPA) and the California Air Resources Board (CARB) as the Company works to develop approved remedies for the affected TDI vehicles as quickly as possible. As the claims program is developed, Mr. Feinberg will consult these agencies for their input. For more information regarding the Volkswagen TDI emissions compliance issue, please visit www.vwdieselinfo.com View full article
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Kenneth Fineberg finds himself helping out another automaker in crisis. Volkswagen announced yesterday they have brought in Fienberg to work on and oversee a new claims program for owners of Volkswagen models involved in the diesel emission scandal. “We are pleased to announce the retention of Kenneth Feinberg. His extensive experience in handling such complex matters will help to guide us as we move forward to make things right with our customers,” said Michael Horn, President and CEO, Volkswagen Group of America in a statement. Automobile Magazine was on a conference call with Feinberg to discuss his involvement and plans. Fineberg made it clear this was going to be a tough task as he'll have to figure out what is a legitimate claim and what is the appropriate remedy for those who apply in the program. "The issues are always the same: Who's eligible to file a claim? What is the remedy? What are the proof requirements when somebody commits a claim?" said Feinberg. "What is an appropriate remedy that would give the car owner total peace. And that is a very, very challenging question which we certainly can't answer yet." Feinberg said on the call he expects as many as 500,000 potential claimants in the U.S. The hope for this program is to consolidate the number of lawsuits against Volkswagen. At the moment, there are more 500 lawsuits against Volkswagen that are related to the diesel emission scandal. Feinberg didn't give a timeline as to when we could see a claims program go live. "This is going to take some time. But we'll begin as soon as possible," said Feinberg. Before being brought in by Volkswagen, Feinberg was the administrator for General Motors' ignition switch compensation fund for victims and family of victims. Under his watch, the fund determined that 124 people were killed by the ignition switch turning off unexpectedly and causing the car to lose power. The fund also determined that 275 people were injuried because it. Source: Automobile Magazine, Volkswagen Press Release is on Page 2 Volkswagen Announces Engagement of Kenneth R. Feinberg to Design and Administer a Claims Program Related to the TDI Emissions Compliance Issue Herndon, VA (December 17, 2015) Volkswagen announced today that it has retained attorney Kenneth R. Feinberg, managing partner of The Law Offices of Kenneth R. Feinberg, PC, to design and administer an independent claims resolution program to address claims related to the 2.0L and 3.0L TDI vehicles affected by the emissions compliance issue. Volkswagen believes Mr. Feinberg will develop an independent, fair and swift process for resolving these claims. “We are pleased to announce the retention of Kenneth Feinberg. His extensive experience in handling such complex matters will help to guide us as we move forward to make things right with our customers,” said Michael Horn, President and CEO, Volkswagen Group of America. Mr. Feinberg stated that he will “commence work immediately designing an independent claims process that will meet claimants’ needs.” He added that “we hope to have a claims program designed as expeditiously as possible. In order to do so, we will need the input not only of Volkswagen, but also vehicle owners, their lawyers, and other interested parties.” Mr. Feinberg is a well-respected attorney with extensive experience managing high-profile issues and many of the nation’s most challenging legal matters. He was appointed to two presidential commissions by Presidents Reagan and Clinton and administered several other significant programs. More information on Kenneth Feinberg can be found at http://feinberglawoffices.com/ Volkswagen continues to fully cooperate with the U.S. Environmental Protection Agency (EPA) and the California Air Resources Board (CARB) as the Company works to develop approved remedies for the affected TDI vehicles as quickly as possible. As the claims program is developed, Mr. Feinberg will consult these agencies for their input. For more information regarding the Volkswagen TDI emissions compliance issue, please visit www.vwdieselinfo.com -
Days after the news came out that Volkswagen had outfitted a number of diesel vehicles with illegal software, the company set aside 6.5 billion Euros (about $7.2 billion) to deal with lawsuits and fines. But Volkswagen Group CEO Matthias Müller says that isn't enough. Speaking to reporters at Volkswagen's HQ, Müller said the 6.5 billion is just for the recall. "I can only speculate about any further provisions. Should there be a change in sales volumes, we would react rapidly," said Müller. So how much more could Volkswagen be in for? According to a report done by Credit Suisse, the worst-case scenario could see Volkswagen spending 78 billion Euros (about $84 billion). The best-case scenario has Volkswagen spending 23 billion Euros (about $25 billion). The biggest cost according to the report is owner reimbursement for the lost value of their vehicles. "The market does not appear to be discounting negative knock-on effects," said Credit Suisse analysts in the report. "The outcome for recall costs and fines is unclear and largely depends on the engine performance post repair." Source: Reuters, CNNMoney View full article
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Days after the news came out that Volkswagen had outfitted a number of diesel vehicles with illegal software, the company set aside 6.5 billion Euros (about $7.2 billion) to deal with lawsuits and fines. But Volkswagen Group CEO Matthias Müller says that isn't enough. Speaking to reporters at Volkswagen's HQ, Müller said the 6.5 billion is just for the recall. "I can only speculate about any further provisions. Should there be a change in sales volumes, we would react rapidly," said Müller. So how much more could Volkswagen be in for? According to a report done by Credit Suisse, the worst-case scenario could see Volkswagen spending 78 billion Euros (about $84 billion). The best-case scenario has Volkswagen spending 23 billion Euros (about $25 billion). The biggest cost according to the report is owner reimbursement for the lost value of their vehicles. "The market does not appear to be discounting negative knock-on effects," said Credit Suisse analysts in the report. "The outcome for recall costs and fines is unclear and largely depends on the engine performance post repair." Source: Reuters, CNNMoney -
Despite GM's recall of over 1.6 million vehicles due to faulty ignition switches, two new lawsuits allege that the company hasn't recalled them all. Bloomberg reports that one lawsuit has been filed in San Francisco's federal court states that faulty ignition switch problem is present in the 2010 Cobalt, a model that isn't in the current recall by GM. Another lawsuit filed in Alabama states that GM knew of defects with Cobalts built before April 2009 due in part to technical service bulletins issued to dealers. The TSBs stated that keys may "stick" or "bind" in the switch of non-recalled Cobalts and other vehicles. “We will not comment specifically on the suit or pending litigation. We are recalling all of the vehicles that were manufactured with the specific ignition switch involved in this condition,” said General Motors in a statement. Source: Bloomberg William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster. View full article
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Despite GM's recall of over 1.6 million vehicles due to faulty ignition switches, two new lawsuits allege that the company hasn't recalled them all. Bloomberg reports that one lawsuit has been filed in San Francisco's federal court states that faulty ignition switch problem is present in the 2010 Cobalt, a model that isn't in the current recall by GM. Another lawsuit filed in Alabama states that GM knew of defects with Cobalts built before April 2009 due in part to technical service bulletins issued to dealers. The TSBs stated that keys may "stick" or "bind" in the switch of non-recalled Cobalts and other vehicles. “We will not comment specifically on the suit or pending litigation. We are recalling all of the vehicles that were manufactured with the specific ignition switch involved in this condition,” said General Motors in a statement. Source: Bloomberg William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster. -
Another twist in the General Motors' ignition switch recall story. Automotive News reports that the company may have a possible legal shield from lawsuits stemming from the recall. During the restructuring process, GM negotiated with state attorney generals and consumer groups to carry product liability on vehicle faults after it left bankruptcy in 2009. Those faults prior to 2009 would need to take it up with old GM. So far, any lawsuits brought against the company for pre-2009 faults have gone nowhere. "It is true that new GM did not assume liability for claims arising from incidents or accidents occurring prior to July 2009.Our principle throughout this process has been to the put the customer first, and that will continue to guide us," said GM spokesman Greg Martin in a email. Source: Automotive News (Subscription Required) William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster. View full article
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Another twist in the General Motors' ignition switch recall story. Automotive News reports that the company may have a possible legal shield from lawsuits stemming from the recall. During the restructuring process, GM negotiated with state attorney generals and consumer groups to carry product liability on vehicle faults after it left bankruptcy in 2009. Those faults prior to 2009 would need to take it up with old GM. So far, any lawsuits brought against the company for pre-2009 faults have gone nowhere. "It is true that new GM did not assume liability for claims arising from incidents or accidents occurring prior to July 2009.Our principle throughout this process has been to the put the customer first, and that will continue to guide us," said GM spokesman Greg Martin in a email. Source: Automotive News (Subscription Required) William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster. -
Not Surprised: Hyundai and Kia Get Hit With Two Lawsuits On Fuel Economy
William Maley posted an article in Hyundai
William Maley Staff Writer - CheersandGears.com November 8, 2012 With the news of Hyundai and Kia saying they have overstated fuel economy numbers on a certain number of models, the lawsuit have begun to come out of the woodwork. Earlier this week, a lawsuit was filled in U.S. District Court for the Southern District of Ohio against the two companies. The lawsuit seeks unspecified attorney fees along with damages for U.S. buyers or leasers of one of the 900,000 Hyundai or Kia models. The suit also asks the court to allow people who own or lease a Hyundai and Kia that live in the state of Ohio to back out of their agreements. Then yesterday, the two companies were hit with another lawsuit filled in U.S. Central District Court in Los Angeles on behalf of 23 plaintiffs. The suit is seeking $775 million in compensation for who state the resale values have been damaged by the inflated figures. “Plaintiffs and the Class have been damaged by Hyundai’s and Kia’s misrepresentations, concealment, and non-disclosure of the incorrect fuel economy numbers, because they were misled into purchasing Hyundais and Kias of a quality different than they were promised, and paying higher fuel costs they would not otherwise have paid,” the suit says. Both suits are seeking class-action status. Source: Automotive News, 2 (Subscription Required) William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster. -
William Maley Staff Writer - CheersandGears.com November 8, 2012 With the news of Hyundai and Kia saying they have overstated fuel economy numbers on a certain number of models, the lawsuit have begun to come out of the woodwork. Earlier this week, a lawsuit was filled in U.S. District Court for the Southern District of Ohio against the two companies. The lawsuit seeks unspecified attorney fees along with damages for U.S. buyers or leasers of one of the 900,000 Hyundai or Kia models. The suit also asks the court to allow people who own or lease a Hyundai and Kia that live in the state of Ohio to back out of their agreements. Then yesterday, the two companies were hit with another lawsuit filled in U.S. Central District Court in Los Angeles on behalf of 23 plaintiffs. The suit is seeking $775 million in compensation for who state the resale values have been damaged by the inflated figures. “Plaintiffs and the Class have been damaged by Hyundai’s and Kia’s misrepresentations, concealment, and non-disclosure of the incorrect fuel economy numbers, because they were misled into purchasing Hyundais and Kias of a quality different than they were promised, and paying higher fuel costs they would not otherwise have paid,” the suit says. Both suits are seeking class-action status. Source: Automotive News, 2 (Subscription Required) William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster. View full article
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Tesla Gets Sued By Dealer Associations In Two States
William Maley posted an article in Automotive Industry
William Maley Staff Writer - CheersandGears.com October 22, 2012 Earlier this month, we reported that four states; Illinois, Massachusetts, New York and Oregon were complaining about Tesla and their stores. "Tesla's factory-owned stores present unfair competition for rival dealerships, are inconvenient for consumers needing repairs and, if left unchallenged, ultimately threaten the franchise system," said a report in Automotive News. Tesla didn't see a problem with their stores. "We do what we're capable of doing, and we do whatever they let us do. It's unique for each location. If we can't be a dealer in a mall, we won't do reservations on-site. We tell people where to go on our Web site to make a reservation. We just want to locate in high-traffic locations and interact with people when they are specifically not thinking of buying a car. We have no motivation to change the laws or how the car industry does its business," said George Blankenship, Tesla's vice president of sales. Now, two states have filed suits against Tesla. According to Automotive News, New York and Massachusetts' dealer associations have filled lawsuits against Tesla. Massachusetts dealer association is asking the court to shut down Tesla's store in Boston. New York's dealer assocation has filled suit against Tesla and the New York Department of Motor Vehicles, stating that the two "violated state franchise law by seeking, in Tesla's case, and granting, in the department's case, a dealership license for a Tesla store in Westchester, N.Y." "The big question for a lot of the states is do they have the kind of statute that addresses the issue of who's allowed to be licensed to sell cars for their particular state.Tesla is a good poster child because they're setting up all over the place," said Mark Schienberg, president of the Greater New York Automobile Dealers Association. Tesla still stands behind their defense of saying their stores are just a place to look at the vehicle. If you want to purchase a Tesla, you can do that on their website. "They claim they're operating under the guise of a nonsales showroom, and we call that out as an outright scam," said Robert O'Koniewski, executive vice president of the Massachusetts dealer association. Earlier this afternoon, Tesla CEO Elon Musk posted a piece on the Tesla Motors blog defending their retail strategy. "Automotive franchise laws were put in place decades ago to prevent a manufacturer from unfairly opening stores in direct competition with an existing franchise dealer that had already invested time, money and effort to open and promote their business. That would, of course, be wrong, but Tesla does not have this issue. We have granted no franchises anywhere in the world that will be harmed by us opening stores. Regrettably, two lawsuits have nonetheless been filed against Tesla that we believe are starkly contrary to the spirit and the letter of the law. This is supported by the nature of the plaintiffs, where one is a Fisker dealer and the other is an auto group that has repeatedly demanded that it be granted a Tesla franchise. They will have considerable difficulty explaining to the court why Tesla opening a store in Boston is somehow contrary to the best interests of fair commerce or the public. It is further worth noting that these franchise laws do not even exist in the rest of the world, where almost three quarters of premium sedan sales take place." Source: Automotive News (Subscription Required), Tesla Motors Blog William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster. -
William Maley Staff Writer - CheersandGears.com October 22, 2012 Earlier this month, we reported that four states; Illinois, Massachusetts, New York and Oregon were complaining about Tesla and their stores. "Tesla's factory-owned stores present unfair competition for rival dealerships, are inconvenient for consumers needing repairs and, if left unchallenged, ultimately threaten the franchise system," said a report in Automotive News. Tesla didn't see a problem with their stores. "We do what we're capable of doing, and we do whatever they let us do. It's unique for each location. If we can't be a dealer in a mall, we won't do reservations on-site. We tell people where to go on our Web site to make a reservation. We just want to locate in high-traffic locations and interact with people when they are specifically not thinking of buying a car. We have no motivation to change the laws or how the car industry does its business," said George Blankenship, Tesla's vice president of sales. Now, two states have filed suits against Tesla. According to Automotive News, New York and Massachusetts' dealer associations have filled lawsuits against Tesla. Massachusetts dealer association is asking the court to shut down Tesla's store in Boston. New York's dealer assocation has filled suit against Tesla and the New York Department of Motor Vehicles, stating that the two "violated state franchise law by seeking, in Tesla's case, and granting, in the department's case, a dealership license for a Tesla store in Westchester, N.Y." "The big question for a lot of the states is do they have the kind of statute that addresses the issue of who's allowed to be licensed to sell cars for their particular state.Tesla is a good poster child because they're setting up all over the place," said Mark Schienberg, president of the Greater New York Automobile Dealers Association. Tesla still stands behind their defense of saying their stores are just a place to look at the vehicle. If you want to purchase a Tesla, you can do that on their website. "They claim they're operating under the guise of a nonsales showroom, and we call that out as an outright scam," said Robert O'Koniewski, executive vice president of the Massachusetts dealer association. Earlier this afternoon, Tesla CEO Elon Musk posted a piece on the Tesla Motors blog defending their retail strategy. "Automotive franchise laws were put in place decades ago to prevent a manufacturer from unfairly opening stores in direct competition with an existing franchise dealer that had already invested time, money and effort to open and promote their business. That would, of course, be wrong, but Tesla does not have this issue. We have granted no franchises anywhere in the world that will be harmed by us opening stores. Regrettably, two lawsuits have nonetheless been filed against Tesla that we believe are starkly contrary to the spirit and the letter of the law. This is supported by the nature of the plaintiffs, where one is a Fisker dealer and the other is an auto group that has repeatedly demanded that it be granted a Tesla franchise. They will have considerable difficulty explaining to the court why Tesla opening a store in Boston is somehow contrary to the best interests of fair commerce or the public. It is further worth noting that these franchise laws do not even exist in the rest of the world, where almost three quarters of premium sedan sales take place." Source: Automotive News (Subscription Required), Tesla Motors Blog William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster. View full article
