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By
Matt Posky on December 20, 2017

The Environmental Protection Agency and California Air Resources Board have approved emissions repairs for another 24,000 Audi vehicles equipped with the 3.0-liter diesel V6.
Back in May, a U.S. District Judge ruled that if Volkswagen Group failed to obtain government approval for fixes on its emissions-cheating diesels, it would be forced to offer owners buy-backs. Keen not to spend even more money as a result of dieselgate, the company went to work on a solution — resulting in an initial 38,000 Audi and Porsche vehicles spared from the wrecking yard.
The new approval covers 2014-2016 Audi A6 Quattro, A7 Quattro, A8, A8L and Q5 diesel models. The vehicles are to have their defeat device software removed and various hardware components replaced to ensure emissions compliance. VW says it has now has a remedy for about 75 percent of its tainted 3.0-liters, and hopes to have a solution for the remaining 20,000 soon. (Read More…)
By
Matt Posky on December 14, 2017

Uber Technologies Inc. received quite a bit of publicity when it purchased autonomous semi truck developer Otto in 2016. Still, it saw even more headlines when it became embroiled in a trade secrets lawsuit with Waymo. That case involved files obtained by Anthony Levandowski, former Google engineer and co-founder of the self-driving truck company, who was accused of selling confidential data to Uber (along with his business).
The bad news is that Uber now the subject of a federal investigation and knee-deep in the aforementioned litigation. But the good news is that it appears to have scored a really sweet deal on Otto. (Read More…)
By
Matt Posky on December 12, 2017

Florida lawmakers are pushing a new bill that would make it illegal to have your car stolen if you haven’t bothered to take the keys out of the ignition. While accidentally prepping a car for prospective thieves is easily one of the dumbest things you can do, making it illegal to leave it running while you pop in to buy a pack of gum sets us up for a nice slippery slope argument.
Last week, State Representative Wengay Newton and Senator Perry Thurston introduced matching proposals (House Bill 927 and Senate Bill 1112) that would make leaving your car unattended without stopping the engine, locking the ignition, and removing the key a second-degree misdemeanor. Under the Florida statute, the crime would be punishable with a $500 fine and up to 60 days in jail. (Read More…)
By
Matt Posky on December 3, 2017

One of the handful of Volkswagen Group executives that have been forced to appear in front of a judge over the company’s widespread emission scandal, Oliver Schmidt, has exclaimed he was misused by his employer after issuing a guilty plea. Unless the charges are revised prior to sentencing, the former VW employee has copped to conspiracy to defraud the federal government and violating the Clean Air Act. A third charge of aiding and abetting wire fraud was rolled into the conspiracy charge.
The admission to corporate wrongdoing was made in August. However the claim that the company had taken advantage of him came later via a letter to U.S. judge Sean Cox. (Read More…)
By
Matt Posky on December 1, 2017

Ford wasn’t kidding about wanting to keep ownership of the GT as exclusive as possible. In addition to setting production numbers incredibly low, the company also carefully vetted prospective supercar buyers and made them promise not to resell the vehicle for at least two years.
While atypical of Ford-branded vehicles, clauses like that aren’t uncommon among high-end manufacturers selling an ultra-rare model. But what happens when a customer decides to ignore the contract and flip the vehicle prematurely?
Well, as wrestling-icon John Cena found out, the automaker takes you to court. On Thursday, Ford Motor Company filed suit against Cena in the U.S. District Court in Michigan over breach of contract, fraudulent misrepresentation, and unjust enrichment. (Read More…)
By
Matt Posky on November 22, 2017

In the midst of Uber Technologies’ corporate restructuring and cultivation of a squeaky-clean new image, the ride-hailing company was apparently hiding a dark secret. Striving for transparency, the company has now confessed that hackers stole the personal information of 57 million customers and drivers in October of 2016.
The coverup, apparently conducted by the firm’s chief security officer and another staff member, involved over $100,000 in payments to the hackers in the hopes to keep them quiet. The data lost included names, email addresses, and phone numbers of around 50 million Uber riders across the globe. Another 7 million drivers were also subjected to the digital attack, with over half a million of those losing their driver’s license numbers. (Read More…)
By
Matt Posky on November 13, 2017

Roughly 8,000 U.S. dealers will share in a $335 million payday resulting from a colossal 2010 antitrust investigation. The issue? Suppliers were involved in a widespread price-fixing scheme that lasted decades, and nobody noticed until the FBI raided the offices of Yazaki North America Inc., Denso International America Inc. and Tokai Rika Group North America.
In the end, 65 individuals and 47 companies were charged by the Justice Department — resulting in over $2.9 billion in fines and jail time for a swath of fresh white-collar criminals.
However, none of that money made it to manufacturers, dealers, parts retailers, or consumers. Those players had to resort to filing civil suits in federal court against the companies. In 2012, the multitude of claims were consolidated and transferred to Judge Marianne Battani and the U.S. District Court in Detroit. Over $1 billion has been set aside for affected parties, with around $335 million of the sum going to dealerships. (Read More…)
By
Matt Posky on November 7, 2017

As you know, Dyson, the vacuum/hairdryer manufacturer, is moving into electric vehicles. The company has made plans to introduce a radical example (with new solid-state batteries) to market by 2020 that will suck and blow you away. But you only found out last year, which was long after Tesla Motors caught wind of a fresh competitor on the horizon.
Apparently, an engineer spilled the beans to Tesla’s legal representation around the same time he was being interviewed for a position at the automaker. If you’re wondering if he got the job, he did.
This is the second time Dyson’s plans for EV secrecy went haywire. Its public announcement wasn’t supposed to be until September of this year. However, a slip-up by the British government saw its National Infrastructure Delivery Plan mention that the public would help fund the company in “developing a new battery electric vehicle” — giving away the secret in 2016. (Read More…)
By
Matt Posky on November 3, 2017

A federal investigation that started with corruption charges against a former Fiat Chrysler labor executive and the wife of a deceased United Auto Workers vice president has expanded to include training centers created by both General Motors and Ford. Investigators issued subpoenas in recent weeks to amass information on the centers, which are jointly operated between the automakers and the UAW.
In the FCA case, company and union officials are alleged to have misappropriated an estimated $4.5 million earmarked for employee training. That money is believed to have gone into personal accounts and used to buy suspiciously extravagant items. The FBI appears to be concerned that similar activities could be happening at Ford and GM-backed training sites. (Read More…)
By
Matt Posky on October 30, 2017

Earlier this month, General Motors agreed to a $120 million settlement over faulty ignition switches and the uncouth way in which it handled that particular, ahem, “safety issue.” The settlement applied to 49 states and the District of Columbia but not Orange County, California. That region of the U.S. required a separate case, an additional $13.9 million, and some exuberant scorning.
California faulted GM with not only selling defective vehicles but intentionally concealing serious safety defects through the careful usage of language.
Prosecutors claimed the company specifically trained its staff to never use words like “defect” or “stall,” and even avoid dealing with any safety issues whenever possible, while being simultaneously aware of a problem that ultimately resulted in the deaths of over 120 individuals. While this matter had been more-or-less settled via an earlier $900 million agreement (resulting from the Justice Department’s investigation, in 2015), it deferred direct criminal prosecution of the company for three years. Perhaps that caveat rubbed Californian prosecutors the wrong way and they wanted some additional retribution. (Read More…)
By
Matt Posky on October 24, 2017

Following an earlier raid at BMW, Daimler AG and Volkswagen Group were also searched by antitrust officials from the European Union Commission and German government this week. Despite claiming whistleblower status, Daimler is still subject to investigation — though it’s less likely to incur the same financial penalties if the collusion charges go to court.
Over the summer, investigators from the EU stated there would be an investigation into several German carmakers after allegations surfaced that companies conspired to fix prices on various automotive technologies over several decades. But it wasn’t until Monday that officials searched Daimler’s corporate offices and collected documents from Volkswagen’s headquarters in Wolfsburg and at Audi’s home base in Ingolstadt. (Read More…)
By
Matt Posky on October 19, 2017

Two Austin-based police officers have filed lawsuits against Ford Motor Company after being incapacitated by carbon monoxide that leaked into the cabin of their Interceptor Utilities. Ford finds itself flooded with hundreds of complaints over unacceptable carbon monoxide levels in 2011-2017 Ford Explorers, receiving the most flack from police departments with problematic SUVs. Officers across America have complained of dizziness while driving, with some requiring hospitalization.
The issue had become so bad that Austin’s police department actually pulled about 400 Explorer-based squad cars from its motor pool. Scrambling for a solution, Ford has implemented a special task force to investigate the problem and develop a solution. The automaker also offered to fix 1.33 million Explorers to ensure there is no exhaust leak, but was quick to remind everyone this wasn’t a recall, as no U.S. government standard for in-vehicle carbon monoxide levels exists. (Read More…)
By
Matt Posky on October 11, 2017

Uber Technologies is about to be probed to a degree that would make even the most compliant alien abductee blush. The company is now looking at a minimum of five criminal investigations from the U.S. Justice Department regarding claims of bribes, illicit software usage, unfair marketing practices, corporate espionage, questionable pricing strategies, and theft of a competitor’s intellectual property.
The ride-hailing firm is also involved in dozens of lawsuits from from customers and employees — and one very public suit with autonomous research rival Waymo. But Uber’s skirting of the law was what made it so profitable to begin with. Its take-no-prisoners attitude may have been the thing that ultimately ousted founder and CEO Travis Kalanick and severely tarnished its corporate image, but it’s also an aspect that ensure its success. Still, nobody likes learning how the sausage is made and every look behind Uber’s curtain revealed another fresh horror the press couldn’t resist mentioning — including yours truly. (Read More…)
By
Matt Posky on September 10, 2017

Uber has undertaken a concerted effort to clean up its corporate act, but holdovers from its more aggressive era continue getting the ride-hailing firm into trouble. Currently, the Federal Bureau of Investigation is checking into Uber Technologies Inc. to see if it had used software to illegally interfere with its competition from 2014 to 2016.
The program in question, which Uber calls “Hell,” was the focus of an April lawsuit where a former Lyft driver asked for $5 million in damages. By creating dummy accounts, Hell is supposedly able to track the areas where its rivals are doing business and better-compete by adjusting pricing or offering discounts to their customers. It’s also a way to see if Uber employees are double dipping by simultaneously working for Lyft.
It’s not the first time the company has been cited for playing on the fringes of legality. In addition to a high-profile court case against Alphabet’s Waymo over trade secrets, Uber has also been accused of testing self-driving vehicles without state approval, and using its “Greyball” software to hide from police and public officials. (Read More…)
By
Matt Posky on August 11, 2017

California’s insurance regulators have launched an investigation into Wells Fargo following the bank’s confession that it forced hundreds of thousands of auto loan borrowers to pay for insurance policies they didn’t need and, in many cases, were unaware of.
There’s also a congressional investigation underway, where U.S. senators are asking the company basic questions like who was affected, how broadly, whether they get a refund, and why the hell this occurred in the first place.
Unlike JPMorgan Chase or Bank of America, Wells Fargo’s auto loan contracts allowed the lender to obtain collateral protection insurance on a customer’s behalf if they failed to buy liability coverage themselves — or if the bank assumed they hadn’t. It’s not common practice and, when it causes paying customers to default and have their vehicle repossessed, it’s not difficult to see why. (Read More…)
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