Last week a lawsuit was filed with the U.S. District Court in Youngstown claiming that General Motors is in violation of a “memorandum of understanding” with the United Automobile Workers by allowing temporary employees to support the launch of some new product from Fort Wayne Assembly Plant. The facility, which is responsible for manufacturing the Chevrolet Silverado and GMC Sierra pickups, is alleged to have brought on temporary workers from May to August of 2018 instead of using its laid-off full-time workers. The UAW claims this is decision represents a breach of contract.

The union says there are nearly 700 workers laid off from the “nearby” Lordstown, Ohio Assembly Plant — many of whom have applied to transfer to the Fort Wayne as is their right under the current contract with GM. (Read More…)

One of the worst things about being an adult is that you’re constantly inundated with legal agreements you don’t have time to read. But you’d best read them all the way down to the fine print because, as every old crank knows, “that’s where they get you.”

A sterling example of this phenomenon cropped up in Texas this week, where a man is at risk of being thrown out of his apartment complex if he doesn’t fix the dent on his first-generation Chevrolet Traverse. While the complex doesn’t have a policy around owning a battered automobile, it does have one about them occupying the property — and management is swift to enforce it (through towing) if owners don’t fix them. That’s a problem, as the man with the dented Chevy, one Sontlux Sukhavachana, says he can’t afford to take it into a body shop and can’t make rent without a car.  (Read More…)

The California New Car Dealers Association is requesting that Volvo immediately end its Care by Volvo subscription service within the state. According to the group, the automaker is in violation of California’s franchise and consumer protection laws.

It’s been a long time coming, as Care by Volvo is clearly designed to minimize dealer interactions. Anders Gustafsson, CEO of Volvo Cars of North America, even said the program claimed as much as 15 percent of the XC40 crossovers intended for dealerships this year.

“It’s really the same concerns from everybody, and it’s just that they don’t feel secure,” Gustafsson of said dealers last month. “They’re afraid we’re going to take something away from them … I would say the biggest question mark around subscriptions is that consumers need to decide that. Our retailers are asking, ‘Please let us be involved, because we can help.'”

It looks like they’re tired of begging.  (Read More…)

While Volkswagen’s diesel emission fiasco has died down in the United States, costing the automaker billions before going achieving dormancy, the legal fires burn brightly in Europe. On November 14th, a German court ruled that VW must reimburse the owner of a Golf the full price of the vehicle from when it was purchased in 2012. The decision sets a new precedent, possibly opening the firm to additional expenses via buybacks.

However, Volkswagen AG has claimed around 9,000 judgements have already been made relating to the diesel emissions scandal — most of which resulted in customer complaints being unsupported by district and higher courts. “In our opinion, there is no legal basis for customer complaints [in Europe]. Customers have suffered neither losses nor damages. The vehicles are safe and roadworthy,” VW said.  (Read More…)

Volkswagen Group’s supervisory board has postponed a decision on the future of Audi CEO Rupert Stadler, who has been in jail since June due to his presumed connection with the automaker’s diesel malfeasance. Despite having scheduled a Monday meeting to assess Stadler’s role within the company and how best to end it, the board found itself unable to come to a conclusion by Friday.

That does not mean the imprisoned CEO will be getting a pardon from the company, however. Stadler’s representatives and VW simply failed to negotiate a solution that would see Stadler step down from his role as Audi CEO and as a VW Group management board member, sources close to the situation told Automotive News Europe.  (Read More…)

Volkswagen’s supervisory board will meet on Monday to map out the future of Rupert Stadler, the suspended chief executive of its Audi brand. German outlet Der Spiegel reported on Friday that VW intends to decide whether or not Stadler, who has been in police custody since mid-June as part of a broader probe into the company’s diesel cheating fiasco, should resign his post.

Officially, the automaker’s position on the matter is that the CEO is innocent until convicted of criminal wrongdoing. But having him in the crosshairs of the media and investigators isn’t great PR for the company.  (Read More…)

Volkswagen Group is interested in teaming up with other automakers to establish a new industry standard for self-driving technology. While the move would likely help streamline development, VW’s primary concern seems to be legal protection in the event an autonomous vehicle makes a mistake.

The idea of an automaker preparing itself to better cope with the legal ramifications of accidentally killing one of its customers isn’t particularly encouraging, but it’s at least understandable. (Read More…)

A judge hearing a case brought by investors against Volkswagen has deemed its former corporate head, Martin Winterkorn, was too slow in addressing the emissions test cheating that steered the automotive giant into colossal U.S. fines. It’s an early blow against the German company in a suit seeking $10.6 billion in damages for stock losses suffered when the scandal finally became public.

“Anyone acting in good faith would have followed up on this information,” Judge Christian Jaede of the ex-CEO during the second day of hearings held at the Braunschweig higher regional court. “This appears not to have happened.” (Read More…)

Volkswagen Group will be staring down the barrel of a courtroom next week, which isn’t anything new. The automaker’s investors want 9.2 billion euros ($10.7 billion) in compensation after arguing the carmaker should have informed shareholders about a diesel emission scandal before regulators got the word out in 2015.

The lawsuit groups 1,668 individual claims, primarily those brought in by VW’s institutional shareholders, who previously accused the automaker of failing to inform investors about the scope of a scandal. Volkswagen’s excuse has always been that top brass had no idea the issue would be serious enough to cost the company 27.4 billion euros in punitive fines. But new evidence continues to emerge that upper management was well aware of the defeat devices’ existence.  (Read More…)

On Monday, former Fiat Chrysler Automobiles labor relations chief Alphons Iacobelli was sentenced to 66 months in federal prison for tax evasion and his key role in the corporate conspiracy to win favorable treatment from the UAW. Apparently, his plea agreement didn’t help him avoid jail time, but it was enough to shave a few years off his sentence.

Iacobelli pleaded guilty to federal charges of conspiring to violate the Labor Management Relations Act and for subscribing a false tax return in January. At the time, he was facing a maximum sentence that included eight years in prison. However, his $835,000 tax-restitution case is yet to be resolved and will be decided upon at a future date. Iacobelli will continue assisting with the investigation in the interim and, likely, beyond.  (Read More…)

A trio of “driving enthusiasts” briefly shut down San Francisco’s Bay Bridge on Sunday morning after they decided it was the perfect place to do donuts. The vehicle’s involved appear to be a MkIII Toyota Supra and a pair of SN-95 Mustangs. According to the California Highway Patrol, the older of the two Mustangs was nabbed while its New Edge kindred escaped with the Supra — probably to get brunch somewhere across town.

Other drivers were also stopped and issued citations for illegal modifications, presumably because the cops couldn’t prove they helped stop traffic so the lead cars could put on a smoke show.  (Read More…)

Tesla may be going private, according to a Tuesday message from Elon Musk’s Twitter account. “Am considering taking Tesla private at $420. Funding secured,” the CEO wrote. “Good morning,” he said immediately afterward, accompanying the message with the smiley face emoji.

What followed was rampant media speculation as to whether Musk was in his right mind or not, while Musk continued responding to questions online.

“I don’t have a controlling vote now & wouldn’t expect any shareholder to have one if we go private. I won’t be selling in either scenario,” he said after being asked whether it would be an outright sale and if he could retain control of the company. “My hope is *all* current investors remain with Tesla even if we’re private. Would create special purpose fund enabling anyone to stay with Tesla. Already do this with Fidelity’s SpaceX investment.”

Meanwhile, CNBC and a few other news outlets noted that the number 420 has a special significance in the marijuana-smoking community and that Musk’s good-morning tweet was issued at around 1:30 p.m. Eastern, which — gasp — isn’t in the morning at all! (Read More…)

Even though the United States has already penalized and fined the crap out of Volkswagen for selling vehicles equipped with emissions-cheating defeat devices, the company remains in hot water. Earlier this month, Germany imposed a fine of $1.2 billion over the “dieselgate” scandal.

“Volkswagen accepted the fine and it will not lodge an appeal against it,” the company said. “Volkswagen, by doing so, admits its responsibility for the diesel crisis and considers this as a further major step towards the latter being overcome.”

On Monday, the U.S. Ninth Circuit Court of Appeals also upheld a $10 billion settlement between Volkswagen and the owners of 2.0-liter TDI vehicles that came equipped with the illegal software. The ruling pertains to roughly 475,000 customers. VW agreed to offer owners of the 2.0-liter diesels between $5,100 and $10,000 in compensation, in addition to the value of the vehicle. (Read More…)

Professional wrestler John Cena has settled a lawsuit filed by Ford Motor Company over the sale of his Ford GT for an undisclosed amount. If you’ll recall, the automaker affixed a clause to the purchasing agreement that forbade buyers from reselling the vehicle for 24 months.

However, after the automaker filed its lawsuit, Cena’s legal team alleged there was a legal loophole that allowed for the flip. Since the agreement was not included in the final dealer documents, it speculated there was some wiggle room. Regardless, it doesn’t appear to have been enough to squirm away from Ford’s contract entirely.  (Read More…)

The UAW-Chrysler National Training Center, which remains in the midst of a multimillion-dollar federal corruption scandal, is suing Fiat Chrysler Automobiles officials and a union leader’s widow for over $4.4 million in damages. If you’ll recall three FCA employees filed a federal lawsuit against the automaker and the UAW seeking hundreds of millions of dollars in damages over allegations that union officials colluded with company executives to influence collective bargaining earlier this year.

Now it’s time for the National Training Center to get a piece of the action. The lawsuit, filed Friday in Oakland County Circuit Court, targets former FCA labor negotiator Alphons Iacobelli; Monica Morgan-Holiefield, the widow of former UAW Vice President General Holiefield; and ex-FCA financial analyst Jerome Durden. Money was believed to be funneled through the training facility by a policy created by company officials to bribe UAW leaders into giving the automaker favorable treatment during collective bargaining.  (Read More…)