Tag: lawsuits

By on September 16, 2020

General Motors refuses to let the dismissal of its federal racketeering case against Fiat Chrysler Automobiles stand in the way of getting what it believes is true justice. On Monday, the automaker filed its latest claim with Wayne County Circuit Court in Michigan. These are separate from the New Jersey lawsuit it has targeting former board member and ex-UAW vice president Joe Ashton, who GM has accused of being a hired mole. However, Ashton was named in the trio of new court filings, along with Alphons Iacobelli  the man who pled guilty to embezzling union funds and kicked off a gigantic federal corruption investigation into the UAW.

The automaker also named some of the banks it claimed were involved in the union scandal and continues to allege that FCA “provided millions of dollars to co-conspirators via numerous undisclosed offshore bank accounts and utilized such accounts to purchase the support and silence of numerous high-level UAW officers and FCA executives.” Fiat Chrysler’s assumed goal? Forcing General Motors into a merger or destroy it if the merger failed by negotiating favorable terms with the union and encouraging leadership into adopting positions that would harm GM.

(Read More…)

By on August 25, 2020

Frequently on the cutting edges of technology, the automotive industry has been slamming chips into vehicles to facilitate communications ever since General Motors launched OnStar back in 1996. This evolved into cars boasting reliable navigation systems and remote vehicle diagnostics until they literally started becoming mobile internet hot spots.

Now the industry wants to further ingrain connectivity by equipping all vehicles with 5G — opening the road for new features and the ability to harvest your personal data more effectively.

This has required deals with tech chip manufacturers like Qualcomm, which requires companies to sign a patent license agreement before actually selling any of its hardware or software. But regulators around the globe worried the practice may be monopolistic, violating antitrust laws. The Federal Trade Commission (FTC) brought a case against the business in 2017. Despite winning that case in 2019, a U.S. appeals court overturned the decision earlier this month, deciding Qualcomm could continue conducting business as usual. Now, tech companies (mainly Qualcomm rivals) and a gaggle of automakers are urging the FTC to seek an appeal following the loss. (Read More…)

By on July 23, 2020

Tesla is accusing Rivian Automotive of poaching its employees and lifting trade secrets in a recent complaint filed in San Jose, CA. Founded in 2009 by Massachusetts Institute of Technology alum R.J. Scaringe, Rivian has made inroads with the automotive sector and established partnerships with entities like Amazon and Ford Motor Company (we think).

While its home base is presently TBD, as the company considers shifting more of its staff to the West Coast, its mission has remained consistent  manufacture all-electric SUVs and pickups so they can wash over North America.

Rivian is one of those “Tesla killers” you keep hearing about before they suddenly blip out of existence, but it has enough weight behind it to potentially offer real competition in the future it plays its cards right. Tesla is just worried that some of those cards might not belong to Rivian.

(Read More…)

By on July 9, 2020

 

Ren Cen. GM

General Motors’ racketeering lawsuit against rival Fiat Chrysler is dead in the water after a federal judge dismissed the case on Wednesday.

The move comes after GM appealed U.S. District Court Judge Paul Borman’s order that the CEOs of the battling automakers should meet in private and hash out a resolution themselves. The General won half of its appeal, and the meeting was scrapped, but Borman, who described the lawsuit as a “nuclear” option that only served to clog up the courts in a time of COVID-19, stayed on the case — against GM’s wishes.

Now, the case has come to an end, though the battle might still rage on. (Read More…)

By on July 7, 2020

mary barra gm

General Motors saw half of its wishes granted this week, after an appeals court overturned an order by U.S. District Judge Paul Borman for the CEOs of GM and Fiat Chrysler to meet and settle their differences in person.

GM is suing FCA, accusing its crosstown rival of racketeering and claiming it lost billions of dollars via FCA’s bribing of UAW officials in return for a series of favorable, low-cost labor agreements. The General wants to go all the way with its case, but Borman stepped in, calling the suit a “nuclear” option. The in-person meeting is now off the table, but Borman’s still on the case.

(Read More…)

By on June 23, 2020

On Monday, Nevada Governor Steve Sisolak announced that his state will embrace California-crafted emissions rules that are at odds with the national rollback finalized by the Trump administration in March.

Officially, Sisolak said the rules would not require residents to abandon their current ride “or choose one that does not work for their lifestyle or business needs.” Nevada has, however, decided to adopt higher mpg standards, as well as the Golden State’s zero-emission vehicle (ZEV) rules that require manufacturers to sell a certain number of electric or plug-in hybrid models each year based on the total number of vehicles sold within the state.

Companies in compliance accrue ZEV credits, which can then be traded or sold to other manufacturers for money. As with the Corporate Average Fuel Economy (CAFE) system, those that cannot hit their targets (or afford to buy up credits) will be fined. Tesla actually used such arrangements to make $594 million off its rivals in 2019, with the prospect of things only getting more lucrative for the all-electric brand.  (Read More…)

By on June 12, 2020

Ford has weathered heavy criticism for moving bunk transmissions for some time. Normally, that conversation revolves around the PowerShift DSP6 (aka Getrag 6DCT250) installed in passenger cars with names beginning with the letter “F.”

The unit turned out to have a laundry list of problems and ultimately created a ruckus between management, engineers, and Ford’s legal team. Concerned that scrapping the dual-clutch automatic at the last minute would prove a costly decision in the midst of our last economic recession, the manufacturer ran with it — only to be confronted with annoyed consumers who felt the transmission wasn’t anywhere near up to par.

While the DSP6 is the unit that gets top billing for What Were They Thinking: The Movie, it wasn’t the only transmission prompting headaches in Dearborn. Another Getrag-sourced unit, the MT82 six-speed manual, is allegedly a sore sport for Mustang drivers. Owners of 2011-2019 model year Ford Mustangs are now suing the manufacturer for delivering what they claim is another faulty product.  (Read More…)

By on May 28, 2020

Following America’s fueling feud has shown your author that it’s less about finding a reasonable compromise that works for consumers, the automotive industry, and environmental activists, and more about perpetuating ideological wars that now seem to surround every topic filtered through the news media.

Encouraged by industry leaders just days after taking office, President Donald Trump made the fuel economy rollback one of his first initiatives. It wasn’t until March that the softened final draft emerged, however, and it won’t be enough to conclude the almost four-year battle. A collection of 23 states filed suit against the Trump administration’s easing of emissions standards on Wednesday. They argue that the rollback is illegal and based on bunk information.

While we’ve also been suspect of some of the metrics used to make the rollback look more desirable, fueling standards haven’t adhered to reality in some time. The Obama-era standards that would have seen Corporate Average Fuel Economy (CAFE) rise to 54 mpg by 2025 were deemed unsustainable by that administration’s Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA), but were put into play anyway.  (Read More…)

By on May 26, 2020

Volkswagen’s emission-related malfeasance was promptly identified and dealt with in the United States. The company was accused of using suspect software to game testing scores on diesel-equipped models in 2015. By October of 2016, VW was on the hook for a $15.6 billion financial penalty, in addition to mandatory fixes or buybacks on affected vehicles.

Things progressed differently on the European front. Germany has subjected the manufacturer to numerous investigations, ultimately deciding to fine the firm $1.18 billion in 2018 and enact widespread recalls. Civil suits have largely focused on VW’s legal representatives denying the software had any ill intent, claiming it was simply code that mistakenly allowed the cars to become non-compliant with regulatory limits. This didn’t fly, however, with a gigantic UK lawsuit finding the automaker guilty of intentionally misleading customers in April.

This week, VW lost another important legal battle in Germany when the Bundesgerichtshof found it guilty of cheating on emissions testing years earlier. The Federal Court of Justice in Karlsruhe decided disenfranchised diesel van owner Herbert Gilbert was entitled to a €28,000 payday, setting a precedent for thousands of other claimants seeking revenge.  (Read More…)

By on May 10, 2020

Elon Musk + Tesla Model S Circa 2011

California announced late last week that it will allow the cautious reopening of manufacturing operations across the state, but Alameda County resisted, claiming it will keep non-essential businesses shuttered until the end of the month.

Guess which county Tesla’s Fremont assembly plant is located in.

Now guess Tesla CEO Elon Musk’s reaction to the country’s announcement. If you speculated that Tesla might sue Alameda Country, with Musk launching an online tirade in which he promises to move Tesla HQ and all future products out of the state, you’d be right. (Read More…)

By on March 12, 2020

The hosts of the Discovery Channel’s Diesel Brothers have been fined $851,451 for selling modified pickups that violate Utah law and the federally recognized Clean Air Act.

U.S. District Court Judge Robert Shelby also said the plaintiffs, Utah Physicians for a Healthy Environment, could submit their attorney fees for the defendants to pay. Cole Cannon, lawyer to the stars, has said the plaintiffs’ attorneys previously told the judge they were seeking $1.2 million.

Friday’s court documents stipulate that David “Heavy D” Sparks, Joshua Stuart, Keaton Hoskins, and “Diesel Dave” Kiley pay $761,451 to the U.S. government with the remaining $90,000 going to Davis County in Utah. The group has already been found guilty of removing particulate filters and exhaust recirculation systems on the cars used for the television program. The only genuine surprise was the sizable fine —  as well as some court-appointed rules that will probably make the show less exciting to watch.  (Read More…)

By on March 4, 2020

FCA

Reid Bigland, the towering Fiat Chrysler exec who made waves by suing his employer last year, has announced he’s leaving the company after 22 years of service. His last day will be April 3rd.

Head of U.S. sales, the Ram brand, and president and CEO of FCA Canada, Bigland was once seen as a potential replacement for late CEO Sergio Marchionne, but a spat with his employer tainted the longstanding relationship. That lawsuit apparently came to a head earlier this year. (Read More…)

By on February 14, 2020

Volkswagen has had to spend mountains of money since being caught using illegal software to hide excessive diesel pollution during regulatory testing five years ago. As if millions of vehicle buybacks and repairs weren’t costly enough, VW also had to contend with billions of dollars in regulatory fines and countless consumer lawsuits — and the hits keep on coming.

While the United States enacted swift justice upon VW, Europe has been slower to take action. That, in addition to EU laws making it much more difficult for class-action suits to get off the ground, meant Europeans received nothing as VW’s American customers saw checks cut to the tune of $20,000 apiece. Germany has only allowed class-action lawsuits since 2018, providing an opportunity for Volkswagen to continue playing legal hardball. But it’s been backpedaling all across Europe.

Citing a breakdown in negotiations with German consumer association VZBV, which was attempting to reach a settlement deal for German customers attached to its class-action suit, the automaker said Friday it is willing to offer €830 million (about $899 million).  (Read More…)

By on February 12, 2020

Carlos Ghosn - Titan intro - Image: Nissan

Jeez, it’s a good thing they didn’t have kids.

Nissan has responded to former chairman and CEO Carlos Ghosn’s escape from Japanese captivity — and subsequent doubling down on his accusations of a corporate coup orchestrated by Nissan execs, with the help of Japanese officials — by filing a lawsuit.

As it attempts to free up cash elsewhere in the company, the struggling automaker is seeking to recoup losses from Ghosn’s alleged financial impropriety. (Read More…)

By on November 26, 2019

Elon Musk

The unfathomably boneheaded and childlike series of events that culminated in the defamation lawsuit against Tesla CEO Elon Musk are well-covered on these digital pages, but the results of that suit will soon become clear.

Musk plans to testify in his own defense in a trial scheduled to begin on Dec. 3, Reuters reports. If seats in the public gallery were available online, this writer would slap $100 down on one in a heartbeat. (Read More…)

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