Tag Archives: lemon laws

Saab Sues GM For Blocking Chinese Investors

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Luxury sports car maker, Spyker, has filed a lawsuit against General Motors accusing them of deliberately bankrupting Saab by blocking deals with foreign investors. When Spyker bought Saab from GM in 2010, the agreement allowed GM to retain the rights to technology and patents used in the engineering of Saab vehicles. As Saab struggled to avoid a court action to liquidate the company, Chinese automakers, Zhejiang Youngman Lotus Automobile and Pang Da Automobile Trade came forward with $140 million dollars to invest in the company with an expected additional investment of up to $708 million to build Saab vehicles in Sweden’s Trollhattan plant as well as open a factory in China. According to Spyker, the deal was blocked by GM executives because they did not want Chinese investors to have access to GM technology, allowing them to compete against the U.S. auto maker in China, one of its most important foreign markets. Spyker Chief Executive Victor Muller accused GM of “deliberately pushing Saab over the cliff”. Spyker is seeking $3 billion in damages, the estimated future value of Saab if Zhejiang Youngman had been allowed to buy the Swedish auto maker and invest in it.

The lawsuit comes as GM struggles to survive in Europe. The auto maker said last week that its second-quarter earnings plunged 38% due to a $361 million loss in the company’s European operations.

Low Gas Tax Revenue Prompts New System

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Counties in the San Francisco Bay area are considering getting rid of gas taxes and switching to a vehicle miles traveled (VMT) system instead. The National Surface Transportation Infrastructure Financing Commission (NSTIFC) recommends the switch because revenue from gas taxes have declined over the years as hybrid, electric, and more fuel efficient vehicles become prevalent on roads. They say that it will “balance the costs and benefits of the surface transportation system to those who are using it”, and could also reduce traffic congestion on the roads. The proposal is one idea in long range planning, updated by the agency every four years. If the idea is accepted, it would likely not be fully imposed until 2020.

Randy Rentschler, a spokesman for the regional commission, admits that the idea could be difficult to introduce. Radical changes like this will always be opposed by certain groups, and privacy issues will be questioned as a GPS based systems would be used to log information on when and where drivers are traveling. Transit advocacy groups are encouraging the transition to a VMT system to be tested first in the Bay area where the idea will be more easily accepted and the revenue could be used to support alternative public transportation options.

Ford Sues Windstar Subframe Supplier

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Ford Motor Co. has filed a law suit against automobile parts supplier Dana Holding Corp. over corrosion issues that forced Ford to recall over 425,000 1999-2003 Ford Windstar minivans. The original recall, issued in August 2010, affected rear axles that were susceptible to fractures after years of service in salt states. Continued complaints led to subsequent Windstar minivan investigations and recalls that affected the front lower control arms, rear attaching brackets and body mount attachments.

In a seven page suit filed last Friday Ford stated that they have suffered substantial damages over the minivan issues and are asking the court to enforce a cost sharing agreement between the two companies. When asked about the lawsuit, Dana offered no comment, saying that the company does not discuss pending litigations. Ford and Dana continue to do business together as they work to resolve the issue.

Europe Auto Industry Restructuring

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After a year of the lowest car sales since 1994 and factories operating at ten percent below the profit margin, European automobile manufacturers are being forced to restructure companies by cutting payrolls and closing factories just to survive. But with political resistance to cutbacks, strong unions, and strict labor laws, the question is whether companies can do it fast enough to survive.

In the 2009 recession, France and other European countries spent billions bailing out car companies. Instead of using that money to downsize factories and cut payrolls, it was used to subsidize salaries and offer consumers incentives to buy new cars. With automobile manufacturers back in the same position, they are once again turning to the government for help. But for a recovery plan to work, European leaders need to reconsider a free trade agreement with South Korea. Automobile executives say that these agreements are significantly hurting the industry by allowing Korean automakers to gain a jump in the market share.

The European automotive industry is key to the strength and competitiveness of Europe. The sector not only provides direct employment to more than 2.3 million people but also supports another 10 million jobs indirectly.

Powering EVs With Lithium-Air Batteries

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Consumers who are thinking of purchasing an electric car are usually deterred by the range of the lithium-ion battery used as the power source. Concerns about range, life expectancy, and the ability to find a charging station usually results in the consumer purchasing the vehicle with the technology they are familiar with, the combustion engine. Researchers are hoping to change consumers attitude toward electric vehicles with a new electrochemical cell called the lithium-air battery.

Lithium-air batteries are attractive to researchers because they rely on air as the cathode and lithium metal as the anode. This allows the battery to be lighter and can offer up to ten times more energy per density mass unit than conventional lithium-ion batteries. The first lithium-air battery was developed in the mid 1990’s but the technology still requires improvements before we can expect to see it used commercially.

  • The battery requires a steady flow of oxygen to operate, so an air compressor and blower will need to be added to the system. This not only negates the weight reduced on the battery, but adds extra parts to the system.
  • Lithium metal is highly flammable when exposed to water, so water vapor must be removed from the air and a water tight encasing is required.

Despite recent significant improvements in the technology, researchers say we are still 15 to 20 years from seeing it offered to the public. Once the battery has been approved a long term array of testing is required to make sure the battery can be used safely.

BMW Power Steering Problem

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BMW is recalling certain 2011 1-Series Active E an 2012 Z4 vehicle because drivers could experience sudden loss of power steering assist. Variations in electrical currents occurring within the power steering assist system could lead to sudden loss of power steering increasing the effort needed to maneuver the vehicle. Difficulty in steering could increase the chance of the driver getting into an accident. BMW will be notifying owners starting in July and will replace the steering assistance module free of charge. Owners wanting more information about the problem can contact BMW customer relations at 1-800-525-7417.

Chevrolet Offers New Car Refund

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General Motors (GM) new marketing plan aimed at clearing out remaining inventory of Chevrolet vehicles, will allow customers to return their vehicle for a refund if they are not satisfied with their purchase. Chevrolet’s “Love It or Return It” offer will allow customers of any new 2012 and 2013 model year vehicles, to a full refund as long as there is fewer than 4,000 miles and the customer has driven the vehicle for at least 30 days.

Buyers who choose to return their vehicle will get all their money back, including sales tax. Unfortunately, expenses such as any additional taxes, licensing, registration and extras such as extended warranties will still have to be paid by the customer. GM hopes the plan will encourage customers to give Chevrolet vehicles a try, winning back some of the market share lost to import oriented markets. The promotion will be offered until Sept. 4, 2012.

Chevy Captiva Park Brake Could Disengage

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General Motors (GM) have announced a recall for certain 2012 Chevrolet Captiva sport passenger vehicles because they may fail to conform to the park brake performance requirements of the federal motor vehicle safety standards. According to the recall report, the park brake cable may not be fully seated and could separate from its connector. The park brake could become inoperative and the vehicle could roll away unexpectedly. Dealers will inspect and secured the cable as necessary. Owners wanting more information on the problem can contact the Chevrolet owner center at 1-866-694-6546.