Hyundai Airbag Problem

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Hyundai is recalling certain 2007-2009 Santa Fe and 2012-2013 Sonata vehicles because of airbag problems that could increase the risk of injury to vehicle occupants.

  • Approximately 220, 000 Santa Fe vehicles manufactured between April 2006 to July 2008, could have an improperly calibrated occupant classification system (OCS). The problem could lead to the airbags not deploying during an accident increasing the chance if injury. Owners will be notified to bring in their vehicles to get the OCS software updated.

  • Approximately 22, 000 Sonata vehicles manufactured between January to June, 2012 are being recalled because the curtain airbag may inflate without a deployment command. The manufacturing error could increase the risk of injury to the occupants and could increase the chance of an accident by distracting the driver.

Owners wanting more information on either recall can contact Hyundai customer services at 1-800-633-5151.

Fuel Line Problem In Ford Escape

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Ford is asking owners of certain 2013 Escape vehicles equipped with 1.6L engines and manufactured between October 2011 to July 2012, to not drive their vehicles until a fuel line in the engine compartment has been replaced. The fuel lines could split and leak, causing an engine compartment fire. Owners can contact their local Ford or Lincoln dealer to arrange to have their vehicle picked up for repairs and will provide a rental vehicle if needed. For more information about the problem, owners can contact Ford at 1-866-436-7332.

Europe Auto Industry Restructuring

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After a year of the lowest car sales since 1994 and factories operating at ten percent below the profit margin, European automobile manufacturers are being forced to restructure companies by cutting payrolls and closing factories just to survive. But with political resistance to cutbacks, strong unions, and strict labor laws, the question is whether companies can do it fast enough to survive.

In the 2009 recession, France and other European countries spent billions bailing out car companies. Instead of using that money to downsize factories and cut payrolls, it was used to subsidize salaries and offer consumers incentives to buy new cars. With automobile manufacturers back in the same position, they are once again turning to the government for help. But for a recovery plan to work, European leaders need to reconsider a free trade agreement with South Korea. Automobile executives say that these agreements are significantly hurting the industry by allowing Korean automakers to gain a jump in the market share.

The European automotive industry is key to the strength and competitiveness of Europe. The sector not only provides direct employment to more than 2.3 million people but also supports another 10 million jobs indirectly.

Powering EVs With Lithium-Air Batteries

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Consumers who are thinking of purchasing an electric car are usually deterred by the range of the lithium-ion battery used as the power source. Concerns about range, life expectancy, and the ability to find a charging station usually results in the consumer purchasing the vehicle with the technology they are familiar with, the combustion engine. Researchers are hoping to change consumers attitude toward electric vehicles with a new electrochemical cell called the lithium-air battery.

Lithium-air batteries are attractive to researchers because they rely on air as the cathode and lithium metal as the anode. This allows the battery to be lighter and can offer up to ten times more energy per density mass unit than conventional lithium-ion batteries. The first lithium-air battery was developed in the mid 1990’s but the technology still requires improvements before we can expect to see it used commercially.

  • The battery requires a steady flow of oxygen to operate, so an air compressor and blower will need to be added to the system. This not only negates the weight reduced on the battery, but adds extra parts to the system.
  • Lithium metal is highly flammable when exposed to water, so water vapor must be removed from the air and a water tight encasing is required.

Despite recent significant improvements in the technology, researchers say we are still 15 to 20 years from seeing it offered to the public. Once the battery has been approved a long term array of testing is required to make sure the battery can be used safely.

Honda Door Latch Problem

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Honda is recalling certain 2012 Honda CR-V and 2013 Acura ILX vehicles for a problem that could lead to the doors not fully latching. If the manual or power door lock is activated at the same time the interior front door handle is being operated, the cable connecting the interior door handle to the door latch mechanism could become loose and move out of position. The door may not fully latch and could open while driving. Honda will replace the front door latch assemblies and the interior front door handles. Owners wanting more information about the problem can contact Honda customer service at 1-800-999-1009.

Ford Escape Braking Problem

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Days after the 2013 Ford Escape debuted in dealership showrooms, the automobile manufacturer has already issued a recall for the small crossover vehicle. According to the recall report filed with the National Highway Traffic Safety Administration (NHTSA), the positioning of the carpet padding around the center console could interfere with the drivers use of the brake pedal. The driver could experience increased stopping distances which increases the chance of an accident. It is estimated that over 8,000 vehicles are affected by this recall, but because the vehicle is so new, most are still in the dealership showrooms. Owners wanting more information on the problem can contact Ford at 1-866-436-7332.

Volvo Transmission Control Problem

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Volvo has announced that they will be recalling certain 2011-2013 S80 sedans for a transmission software control problem. According to the recall report filed with the National Highway Traffic Safety Administration (NHTSA), a software error may prevent the transmission from downshifting properly, and could result in decreased engine RPMs and a possible engine stall. Volvo will be notifying owners starting in the middle of July, and owners can bring their vehicles to their local dealership and have the software for the transmission control module upgraded. For more information about the problem, contact Volvo cars at 1-800-458-1552.

California Lemon Law Forced Arbitration Clauses

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A recent survey done by the National Association of Consumer Advocates (NACA) shows that consumer lemon law rights are being stifled as companies try to increase the use of arbitration clauses. Out of 350 consumer attorneys surveyed, 84% said that there is an increase in instances where consumer claims could not be settled or a class action law suits could not be pursued due to an arbitration clause. Approximately 90% of the attorneys surveyed said that they have turned away cases because the underlying contract had an arbitration clause included in it.

Forced arbitration clauses are fast becoming a favorite weapon for businesses as a way of distancing themselves from liability. Clauses are often mislabeled and buried in mountains of paper work, making it easy for the unsuspecting consumer to miss it. Individuals almost always lose to businesses in arbitration. Arbitration is seen as a disadvantage to consumers because:

  1. It creates an uneven playing field in the favor of the automobile manufacturer. A consumer without legal representation will find it difficult to battle an automobile manufacturer that has experience in dealing with lemon law claims.
  2. There is limited recourse for the consumer once a decision is made. The outcome of an arbitration claim can often affect decisions made in future lawsuits.
  3. Businesses are repeated users of an arbitrator, so there is an incentive for an arbitrator to rule in favor of the business if he expects future retentions.
  4. There is a lack of transparency in the proceedings of the arbitration claim.

Consumer Groups Are Fighting Back

  • The Consumer Financial Protection Bureau, created by Congress in the wake of the Wall Street meltdown, recently announced a public inquiry on forced arbitration.
  • The National Association of Consumer Advocates (NACA) has launched a 50-state public education campaign aimed at teaching consumers about the dangers of forced arbitration.
  • A Public Citizen coalition called Fair Arbitration NOW are petitioning lawmakers to pass an Arbitration Fairness Act.

In the meantime, it is important to recognize that automobile manufacturers will try to force arbitration. You should carefully read any contracts before signing and try to negotiate arbitration clauses out of the contract. If a company tries to force an arbitration clause on you, you may want to take your business elsewhere.