Finance companies have begun using ignition kill switches and tracking devices, which allow them to disable and then easily locate vehicles for repossession. Some of the devices even remind borrowers when they’ve missed a payment. According to PassTime, a company that sells such devices, somewhere between 35 and 70 percent of cars financed on subprime loans have some variant of the hardware installed.
Now the the Federal Trade Commission is looking into whether these automotive finance companies are illegally harassing consumers with poor credit by imposing the hardware onto their vehicles — potentially violating their privacy while also garnering unnecessary intimidation from banks. (Read More…)
As U.S. and European authorities gear-up for another round of investigations, Volkswagen confirmed Audi did produce cars equipped with software that can distort emission test results. Although VW was careful not to be too committal in its wording, hinting at it being a handy driver’s assist instead of a defeat device.
This must be a great time to be a corporate lawyer.
Tranquility returns to North America as FCA’s ill-fated minivan assembly plant prepares itself for a return to active duty.
That, the used car rulebook is getting an update, an autoworkers’ union puts its hand out for government cash, and Porsche shrinks the price-tag and stretches the length of the Panamera … after the break!
If you were to listen to the Experts Of The Internet, you might become convinced that Certified Pre-Owned is the only way to go when buying your next whip (I like to say “whip” because I know it annoys many of you). In this case, the experts aren’t entirely wrong — after all, there’s a lot to like about CPO. Late-model cars in like-new condition at a cost that’s considerably less than new, extended warranties, 1,857-point inspections — it’s all good stuff, right? If you play your hand correctly, you can get an outstanding deal and a car that will inspire confidence.
But CPO is a giant pain-in-the-ass for many dealers. Knowing what we know about the dealership world, is it any wonder that a good number of them game the system? If you’re looking to go CPO, you’ll want to know the tricks they pull, and how they affect you, the consumer.
Embattled automaker Volkswagen reached a long-awaited settlement deal in principle with regulators this morning in a California courtroom.
Before presiding judge Charles Breyer, Volkswagen agreed to buy back afflicted diesel models from U.S. buyers, while compensating their owners from a newly created fund. The automaker would accept early termination on leased models, and fix some vehicles if requested by owners. (Read More…)
Volkswagen just tabbed a former FBI director to be the highest paid traffic cop in the universe.
That, Renault is only “improving” its emissions, GM’s big bet on ride sharing and the world’s biggest auto supplier says diesel isn’t dead … after the break!
General Motors disclosed in its quarterly Securities and Exchange Commission filing Thursday that the Federal Trade Commission is investigating the automaker for selling used cars under recall, the Detroit News is reporting.
According to the automaker, the FTC notified GM that it was investigating “certified pre-owned vehicle advertising where dealers had certified vehicles allegedly needing recall repairs.”
The filing acknowledges the investigation is connected with the 2014 recall of 2.59 million cars with faulty ignition switches that could turn the car off while driving, disabling its airbags. So far, 124 deaths have been linked to the defect.
In its battles for the right to sell its wares directly to consumers, Tesla has found a valuable ally in the Federal Trade Commission.
2014 has been a good year for the rental car industry. A recovering economy has meant more car rentals and more miles traveled by consumers. Volume alone isn’t responsible for the rental companies’ recent success, though. Each of the big three rental chains has been able to raise prices, thanks to the consolidation of an industry that they now collectively control 98% of.
Nissan North America and TBWA Worldwide, Nissan’s ad agency have agreed to a settlement with the Federal Trade Commission over the FTC’s claims that a television commercial for the Nissan Frontier misled consumers about the truck’s ability to climb hills. The 30 second ad, titled “Hill Climb”, portrayed a Frontier pushing a stranded dune buggy up a steep sand dune. In reality, the Frontier wold not be able to perform the stunt in the ad. To shoot the ad, both vehicles were towed up the hill using cables.
The United States Federal Trade Commission has launched an investigation into whether car dealers colluded against the online car shopping site, TrueCar, over price competition the site encouraged. Automotive News is reporting that a number of car dealers, including the Kelly Automotive Group in the Boston area, received letters from the FTC saying that the agency is looking into whether companies in the “retail automobile industry” committed anticompetitive acts “by agreeing to refuse to deal with TrueCar” during 2001 and 2012.
The official MPG(e) ratings for Chevy’s Volt and Nissan’ Leaf have been out for a few days. Finally, The Nikkei [sub] noticed something: Nissan’s “all-electric Leaf has gained bragging rights in the U.S. market after garnering a higher fuel economy rating than the Chevrolet Volt.” Bragging rights bestowed courtesy of the U.S. government. (Read More…)