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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 -
William Maley Staff Writer - CheersandGears.com January 4, 2013 The Massachusetts State Automobile Dealers Association lost again in court this week against Tesla. On Monday, Norfolk County Superior Court Judge Kenneth Fishman dismissed the dealers association's case on the grounds of lacking a standing to bring a case forth. This is the latest blow to the Massachusetts State Automobile Dealers Association efforts to stop Tesla from running a store in Boston. Back in November, the Massachusetts Superior Court denied an injunction filed by the association to stop Tesla from operating their store. "We disagree with his decision. If you read the statute, it's pretty clear: a factory cannot own a store, and a dealer can sue for injunctive relief if they feel the public is being harmed," said Robert O'Koniewski, the association's executive vice president on Thursday. O'Koniewski said they are considering options of where to go next. “We are delighted by the outright dismissal of this case and the validation that we are operating our business in compliance with the laws and expectations of the Commonwealth of Massachusetts. We are confident that other states will also come to this same conclusion and look forward to following through on our commitment to introduce consumers to electric vehicle technology in an open, friendly, no-pressure environment,” said Elon Musk, Tesla co-founder and CEO in a statement. Source: Automotive News (Subscription Required), Tesla 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. Related Stories: Tesla's Factory Stores Draws Ire From Dealers Tesla Gets Sued By Dealer Associations In Two States Massachusetts Dealer Association Denied Injunction Against Tesla View full article
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William Maley Staff Writer - CheersandGears.com January 4, 2013 The Massachusetts State Automobile Dealers Association lost again in court this week against Tesla. On Monday, Norfolk County Superior Court Judge Kenneth Fishman dismissed the dealers association's case on the grounds of lacking a standing to bring a case forth. This is the latest blow to the Massachusetts State Automobile Dealers Association efforts to stop Tesla from running a store in Boston. Back in November, the Massachusetts Superior Court denied an injunction filed by the association to stop Tesla from operating their store. "We disagree with his decision. If you read the statute, it's pretty clear: a factory cannot own a store, and a dealer can sue for injunctive relief if they feel the public is being harmed," said Robert O'Koniewski, the association's executive vice president on Thursday. O'Koniewski said they are considering options of where to go next. “We are delighted by the outright dismissal of this case and the validation that we are operating our business in compliance with the laws and expectations of the Commonwealth of Massachusetts. We are confident that other states will also come to this same conclusion and look forward to following through on our commitment to introduce consumers to electric vehicle technology in an open, friendly, no-pressure environment,” said Elon Musk, Tesla co-founder and CEO in a statement. Source: Automotive News (Subscription Required), Tesla 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. Related Stories: Tesla's Factory Stores Draws Ire From Dealers Tesla Gets Sued By Dealer Associations In Two States Massachusetts Dealer Association Denied Injunction Against Tesla -
William Maley Staff Writer - CheersandGears.com November 21, 2012 Last week, the Massachusetts Superior Court denied a request from the Massachusetts State Automobile Dealers Association for an injunction against Tesla to stop them from running a store in Boston. The lawsuit filled on October 16th argued that Tesla violates Massachusetts' licensing, consumer protection and franchise laws since the company runs their own stores. If granted the injunction, Tesla could only use their storefronts as a place showing a locked vehicle with no staff. “Tesla looks forward to continuing to focus on advancing the knowledge of EVs in a convenient, accessible environment. We remain hopeful for a positive outcome of this case,” said Tesla spokeswoman, Shanna Hendriks. Robert O’Koniewski, executive vice president of the Massachusetts State Automobile Dealers Association tells Automotive News they are far from giving up. "Dropping the lawsuit is not an option at this point. We feel very strongly that Tesla is operating a factory store outside parameters of our franchise law and our license law, and they are operating that store illegally," O’Koniewski said. O’Koniewski goes onto say that the group is currently considering an appeal and other judicial remedies. 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. Related Stories: Tesla's Factory Stores Draws Ire From Dealers Tesla Gets Sued By Dealer Associations In Two States -
William Maley Staff Writer - CheersandGears.com November 21, 2012 Last week, the Massachusetts Superior Court denied a request from the Massachusetts State Automobile Dealers Association for an injunction against Tesla to stop them from running a store in Boston. The lawsuit filled on October 16th argued that Tesla violates Massachusetts' licensing, consumer protection and franchise laws since the company runs their own stores. If granted the injunction, Tesla could only use their storefronts as a place showing a locked vehicle with no staff. “Tesla looks forward to continuing to focus on advancing the knowledge of EVs in a convenient, accessible environment. We remain hopeful for a positive outcome of this case,” said Tesla spokeswoman, Shanna Hendriks. Robert O’Koniewski, executive vice president of the Massachusetts State Automobile Dealers Association tells Automotive News they are far from giving up. "Dropping the lawsuit is not an option at this point. We feel very strongly that Tesla is operating a factory store outside parameters of our franchise law and our license law, and they are operating that store illegally," O’Koniewski said. O’Koniewski goes onto say that the group is currently considering an appeal and other judicial remedies. 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. Related Stories: Tesla's Factory Stores Draws Ire From Dealers Tesla Gets Sued By Dealer Associations In Two States 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
