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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Report: Carbon Motors officially files for bankruptcy, lawsuits follow

Filed under: Sedan, Government/Legal, Technology, Police/Emergency, Diesel

Carbon Motors E7 diesel police car - front three-quarter view

So much for Carbon Motors. The would-be police pursuit vehicle manufacturer has officially filed for Chapter 7 bankruptcy (read: liquidation) according to the Indianapolis Business Journal. The company officially lists its liabilities at $21.7 million and its assets at a mere $18,976, including one prototype, a few bits of furniture, books and the company’s intellectual property. Some of the largest debtors are investors and suppliers, including BMW. The German automaker claims Carbon Motors owes them some $3 million.

Carbon Motors built a business model around for its diesel-powered E7 police car by securing a Department of Energy loan through its Advanced Technology Vehicles Manufacturing program for $310 million, but the US Government denied the company’s application in March of 2012. From that point, it was evidently only a matter of time before the company caved in on itself. The warning signs were already thick on the ground when it was revealed that the company had quietly pulled out of its Connerville, Indiana plant back in April.

Bankruptcy protection shields Carbon Motors from lawsuits against the manufacturer. That’s good news, considering three former executives have already filed a lawsuit against the company earlier this year for $600,000 in deferred wages.

Carbon Motors officially files for bankruptcy, lawsuits follow originally appeared on Autoblog on Wed, 19 Jun 2013 11:00:00 EST. Please see our terms for use of feeds.

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Report: Supreme Court clears path for additional seatbelt lawsuits

Filed under: Etc., Government/Legal, Safety

1993 Mazda MPV

The United States Supreme Court has unanimously ruled that automakers can be sued over product-liability complaints, regardless of whether or not the vehicles in question meet federal motor vehicle safety standards in place at the time of manufacture. The decision has been handed down in the case of Williamson vs. Mazda Motor of America, in which the family of a woman who perished in a crash involving a 1993 MPV (pictured) sued the automaker, arguing that she would have survived had there been a three-point belt available for her seating position.

The 2002 accident that claimed the life of Thanh Williamson was a head-on crash with another vehicle, and the other occupants of Williamson’s vehicle with three-point belts survived. Ms. Williamson’s family brought suit in California, contending that Mazda should have provided lap-and-shoulder belts, though it wasn’t required by law at the time the vehicle was built and sold. Despite Mazda’s compliance with vehicle safety standards, the ruling makes automakers more prone to lawsuits over issues deemed negligent by consumers.

Wednesday’s ruling opens the door for a reinterpretation of the Geier vs. American Honda Motor Company decision in 2000 that many lower courts read as a prohibition of state-level liability lawsuits pertaining to products ranging from electronics to vehicles. The Federal regulations in place for these products have been seen as precluding any contradictory state statutes, but with this latest decision, the landscape may change significantly, and not just for automobiles.

Reaction to this decision from the stock market was not positive, with Ford and other car companies down one or two percent. Mazda says the ruling is disappointing, but doesn’t assign liability, and the company will defend itself.

[Source: The Wall Street Journal | Photo: Wikimedia – IFCAR CC 2.0]

Report: Supreme Court clears path for additional seatbelt lawsuits originally appeared on Autoblog on Thu, 24 Feb 2011 16:02:00 EST. Please see our terms for use of feeds.

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AP: Judge won’t dismiss Toyota unintended acceleration lawsuits

Filed under: Government/Legal, Toyota

Toyota LawsuitLast week, U.S. District Judge James Selna announced that he would not dismiss a bevy of lawsuits against Toyota that claim the company’s rash of unintended acceleration complaints have caused vehicle values to fall. The company’s attorneys had attempted to argue that around 24 of the suits should be thrown out on the basis that the plaintiffs hadn’t suffered any financial loss and that owners hadn’t spent money in an effort to fix whatever ailment befell their vehicle. Meanwhile, lawyers on the other side of the aisle argue contend that owners who didn’t suffer through an unintended acceleration event still have a case against the Japanese automaker.

Selna seemed to side with the plaintiffs, though the judge is slated to come to a final decision later this week.

Toyota is worried that if the cases are allowed to proceed, a flood of new litigation will wash in from anyone with a Toyota in the driveway.

[Source: The Crestview News Bulletin]

AP: Judge won’t dismiss Toyota unintended acceleration lawsuits originally appeared on Autoblog on Mon, 22 Nov 2010 15:59:00 EST. Please see our terms for use of feeds.

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Report: Toyota urges judges to throw out unintended acceleration lawsuits

Filed under: Government/Legal, Safety, Toyota

ToyotaToyota has asked a United States judge to throw out the majority of its pending lawsuits on the grounds that the cases are based on anecdotal and circumstantial information. The automaker is currently facing over 300 lawsuits that vary from personal injury to economic loss, nearly all of which are tied in one way or another to the company’s rash of unintended acceleration issues. To date this year, Toyota has recalled eight million vehicles globally for varying reasons, including accelerator pedals that could become entrapped.

Some of the lawsuits have been bundled for pre-trial rulings. These consumer cases claim that the quality woes the recalled Toyota models face have driven down the value of those products substantially. Likewise, the company’s claims of quality, safety and reliability have been called into question. Toyota has responded by saying that any claims made in its advertisements were opinion and to be taken as such.

The combined lawsuits are being handled in Santa Ana, Californa, where Toyota asked the judge to dismiss the cases against the company.

[Source: Bloomberg]

Report: Toyota urges judges to throw out unintended acceleration lawsuits originally appeared on Autoblog on Wed, 15 Sep 2010 19:26:00 EST. Please see our terms for use of feeds.

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