Report: Judge to approve settlement of Mini CVT lawsuits

Filed under: Government/Legal, Safety, Hatchback, Mini

Mechanic Ben Davis wheels the transmission back into place after repairing a clutch on a Mini Cooper S convertible on Friday, July 7, 2006, in the south Denver suburb of Littleton, Colo. U.S. employers add a disappointing 121,000 jobs, wary of bulking up payrolls with the economy slowing and energy prices rising. At the same time, wages rise sharply, fanning inflation worries. By Economics Writer Jeannine Aversa.  (AP Photo/David Zalubowski)

BMW has agreed to settle a number of class-action lawsuits out of court. The suits stem from drivetrain issues on the 2001 to 2006 R50 Mini Cooper – in particular, its continuously variable transmission. The transmission was known to fail, often without warning on otherwise healthy and well-maintained vehicles. This wasn’t the only major issue to afflict the original BMW-era Mini models.

According to legal site Topclassactions.com, the suits alleged that BMW knowingly hid the defects in the CVT from customers while informing dealers of the issue. The first suit was filed in 2011, while four additional suits have followed. Now, BMW has reportedly settled, offering to reimburse 1,200 owners that needed repairs within eight years or 150,000 miles of their purchase. Repair prices for the transmission range from $6,000 to $9,000.

Under the agreement, BMW will also offer up to $4,100 to members of the suit that had fixes performed at a third-party shop, while owners who sold their cars at a loss due to the issues are slated to receive up to $2,000. Finally, owners who are part of the suit will be warrantied for a further eight years and 150,000 miles.

Judge to approve settlement of Mini CVT lawsuits originally appeared on Autoblog on Sun, 25 Aug 2013 16:57:00 EST. Please see our terms for use of feeds.

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Fiat shareholders approve demerger plan

Filed under: Fiat

Fiat 500Sergio Marchionne got his way. This week, shareholders approved his plan to separate Fiat S.p.A. into Fiat Autos and Fiat Industrial. Marchionne believes that the two companies can work better without having to consider each others’ divergent strategies. “Fiat Group Automobiles is destined to become, in combination with Chrysler, a leading global producer, reaching the threshold of 6 million cars a year by 2014,” he said.

Nothing is expected to change at Fiat Auto S.p.A., with Marchionne retaining his CEO status. Fiat Industrial S.p.A., however, will put its own management in place under two two leaders: a CEO for Case-New Holland (CNH) and another for Iveco, the commercial truck brand. Marchionne will assume the role of chairman of Fiat Industrial, and he expects a 50% growth in revenue for that side by 2014, compared to a doubling of revenue on the auto side.

[Source: San Francisco Chronicle]

Fiat shareholders approve demerger plan originally appeared on Autoblog on Sun, 19 Sep 2010 12:35:00 EST. Please see our terms for use of feeds.

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