California Lemon Law Chevy Aveo Buyback

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We recently helped a client in Morro Bay, CA by having the manufacturer repurchase his car. He was driving a 2011 Chevrolet Aveo with about 6,500 miles on it, and was having problems with the air bag light going on. Air bags not working properly are, of course, a safety concern. By the time our client had called us he already had taken the vehicle in three times for repairs. Someone suggested he look into the California lemon law and he then contacted our offices.

Within a few weeks we successfully negotiated with General Motors to have them repurchase his vehicle under the California lemon law statute. The California lemon law protects consumers who have purchased or leased vehicles in California and which show manufacturing defects.

If the vehicle you are driving continues to have problems that started during the manufacturer’s new car warranty, you may be driving a lemon. Please contact the Law Offices of Delsack and Assoc. at 888-Ex-Lemon (888-395-3666) for a free consultation and find out if your vehicle qualifies as a lemon.

Mitsubishi Airbag Sensor Problem

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Mitsubishi is asking owners of certain 2012 i-MEV electric vehicles to bring in their cars to correct a problem that could prevent their airbags from deploying properly. According to Mitsubishi, an incompatibility between the air bag sensor and the self diagnostic software, could deactivate the front and side airbag system. During an accident, the airbags may fail to deploy, increasing the chance of injury. Owners of affected vehicles may notice the Supplemental Restraint System (SRS) warning lamp illuminating to alert the driver of the problem. Owners wanting more information can contact Mitsubishi at 1-800-222-0037.

A123 Systems Sale Raises Security Concerns

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The potential sale of U.S. automotive battery maker A123 Systems to China’s largest auto components company, Wanxiang Group Corp., is raising security concerns among U.S. lawmakers. The $450 million deal would see Wanxiang taking control of 80% of A123 Systems which supplies lithium-ion batteries to luxury car makers like Fisker Automotive. A123 received funds from the Energy Department in 2009 which was used for battery research advancements and job creation programs for batteries used in hybrid and electric vehicles.

Opposition to the sale reports growing concern about foreign controlled or owned companies gaining a niche in the United States supply chain. According to U.S. Rep. Cliff Stearns, “We need to make sure the Federal government isn’t giving away our own national secrets by providing Chinese automobile manufacturing companies with million dollar government grants and loans.” Under the terms of the grant, the company agreed to use funding to support U.S. manufacturing facilities. Changes to the agreement of the grant would first have to be approved by the Department of Energy (DOE) who does not approve grant money being used for anything other than investment in the manufacturing and job creation here in the United States.

Chrysler Deals With Jeep Death Wobble

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Chrysler has released a technical service bulletin (TSB) alerting Jeep dealers, owners, and employees of Jeep Death Wobble, and have issued procedures on how to repair and prevent the problem. Death Wobble has been a problem in certain 2005-2010 Jeep Wranglers since November 2010 after hundreds of drivers complained of experiencing shimmy symptoms at speeds above 45 mph, after hitting a pothole. The highest number of complaints came from owners of 2007 models.

The bulletin advises that the steering system be inspected regularly for damaged, especially if the system has not been maintained. Chrysler warns owner that the installation of aftermarket steering and suspension components or wheel and tire assembles incompatible with Jeeps is the biggest cause of steering system vibration. There has been no reported deaths related to the problem, but owners experiencing the wobble have been justified in being frightened for their safety and the safety of others on the road.

Saab Sues GM For Blocking Chinese Investors

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Luxury sports car maker, Spyker, has filed a lawsuit against General Motors accusing them of deliberately bankrupting Saab by blocking deals with foreign investors. When Spyker bought Saab from GM in 2010, the agreement allowed GM to retain the rights to technology and patents used in the engineering of Saab vehicles. As Saab struggled to avoid a court action to liquidate the company, Chinese automakers, Zhejiang Youngman Lotus Automobile and Pang Da Automobile Trade came forward with $140 million dollars to invest in the company with an expected additional investment of up to $708 million to build Saab vehicles in Sweden’s Trollhattan plant as well as open a factory in China. According to Spyker, the deal was blocked by GM executives because they did not want Chinese investors to have access to GM technology, allowing them to compete against the U.S. auto maker in China, one of its most important foreign markets. Spyker Chief Executive Victor Muller accused GM of “deliberately pushing Saab over the cliff”. Spyker is seeking $3 billion in damages, the estimated future value of Saab if Zhejiang Youngman had been allowed to buy the Swedish auto maker and invest in it.

The lawsuit comes as GM struggles to survive in Europe. The auto maker said last week that its second-quarter earnings plunged 38% due to a $361 million loss in the company’s European operations.

Toyota Rear Suspension Problem

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Toyota has announced a recall for certain 2006-2011 Toyota Rav4 and 2010 Lexus HS250H vehicles because of a problem with the rear suspension. According to the recall report, if the nuts on the rear suspension arm are improperly tightened during a wheel alignment service, the tire rod will develop movement which could lead to rust and damage to the threads. The tire rod could fail causing an abrupt change in the vehicles alignment leading to loss of vehicle control. Drivers who notice a strange noise coming from the rear of their vehicle are asked to contact their nearest dealership as soon as possible. Toyota is working on a repair for the problem and will send out notifications as soon as possible. Owners wanting more information about the problem can contact Toyota at 1-800-331-4331 or Lexus at 1-800-255-3987.

Low Gas Tax Revenue Prompts New System

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Counties in the San Francisco Bay area are considering getting rid of gas taxes and switching to a vehicle miles traveled (VMT) system instead. The National Surface Transportation Infrastructure Financing Commission (NSTIFC) recommends the switch because revenue from gas taxes have declined over the years as hybrid, electric, and more fuel efficient vehicles become prevalent on roads. They say that it will “balance the costs and benefits of the surface transportation system to those who are using it”, and could also reduce traffic congestion on the roads. The proposal is one idea in long range planning, updated by the agency every four years. If the idea is accepted, it would likely not be fully imposed until 2020.

Randy Rentschler, a spokesman for the regional commission, admits that the idea could be difficult to introduce. Radical changes like this will always be opposed by certain groups, and privacy issues will be questioned as a GPS based systems would be used to log information on when and where drivers are traveling. Transit advocacy groups are encouraging the transition to a VMT system to be tested first in the Bay area where the idea will be more easily accepted and the revenue could be used to support alternative public transportation options.

Ford Sues Windstar Subframe Supplier

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Ford Motor Co. has filed a law suit against automobile parts supplier Dana Holding Corp. over corrosion issues that forced Ford to recall over 425,000 1999-2003 Ford Windstar minivans. The original recall, issued in August 2010, affected rear axles that were susceptible to fractures after years of service in salt states. Continued complaints led to subsequent Windstar minivan investigations and recalls that affected the front lower control arms, rear attaching brackets and body mount attachments.

In a seven page suit filed last Friday Ford stated that they have suffered substantial damages over the minivan issues and are asking the court to enforce a cost sharing agreement between the two companies. When asked about the lawsuit, Dana offered no comment, saying that the company does not discuss pending litigations. Ford and Dana continue to do business together as they work to resolve the issue.