Tag Archives: lemon laws

VW Acquires Remainder Of Porsche

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Volkswagen (VW) has announced that they have reached an agreement to acquire the remaining 50.1% of sports car maker Porsche, after a seven year battle between the two German automobile manufacturers. In 2005, Porsche began buying up VW in an attempt to protect both car makers from corporate takeover. By 2008, Porsche had already owned 42.6% and admitted to a complete takeover of VW as they try to buy up 75% of the company. The plan was put on hold because of legal problems and tax hurdles that ended up putting Porsche almost $12.5 billion in debt. The failed takeover has allowed VW to turn the tables, and the complete takeover of Porsche by VW is expected to be finalized by August 1st, 2012.

Under the current agreement, Volkswagen will take over Porsche’s sports-car operations, leaving Porsche SE a stand alone holding company. By completing the deal this year, instead of in 2014 the companies said they would save an extra $400 billion in costs through the integration. According to Volkswagen Chief Executive Martin Winterkorn, the agreement will allow both companies to move forward and become stronger, something they have not been able to achieve the last three years as the takeover left both car makers in limbo.

Automobile Sales Up For June

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Automobile manufacturers reported strong vehicle sales in June despite analysts predictions that the automobile economy is likely to slow for the summer. The average increase for dealership sales was 22% with Toyota and Honda showing the strongest gains. Consumer interest in larger vehicles, such as pickup trucks and sport utility vehicles (SUVs) is being attributed to a sudden drop in the price of fuel, and low interest rates and the release of new models is bringing in consumers who have been delaying purchasing a new vehicle because of lack of confidence in the economy.

BMW And Toyota Share New Technologies

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German automobile manufacturer BMW and Japanese automobile manufacturer Toyota have announced that they will be expanding a 2011 agreement between the two companies to share strategic technologies in four different areas. BMW and Toyota emphasized that they have no intentions of building stakes in each others companies. Both say they share the same strategic vision of sustainable individual future mobility and feel their alliance will only strengthen both companies competitive position in sustainable future technologies. The agreement includes:

  • The joint development of a fuel cell system.
  • The joint development of architecture and components for a future sports vehicle.
  • Collaboration on power train electrification.
  • Joint research and development on lightweight technologies.

The agreement will also end any further discussions of BMW working with General Motors and will eventually dissolve a joint venture with France’s PSA Peugeot Citroen to share components for hybrid cars.

Audi Sunroof Could Shatter

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Volkswagen is recalling certain 2012 Audi Q5 vehicles because the sunroof was installed with a glass that could shatter in extremely cold weather conditions. If the sunroof breaks while the vehicle is being driven, the occupants could be injured by falling glass, increasing the chance of an accident. Volkswagen will be notifying owners of the problem starting in August, and will replace the sunroof glass free of charge. For more information on the defect, owners can contact Volkswagen at 1-800-822-8987.

Toyota Acceleration Pedals Still A Problem

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Toyota’s 2009 unintended acceleration problems continue as Toyota announces a recall for certain 2010 Lexus RX350 and 2010 Lexus RX450H vehicles manufactured between November 2008 through September 2010. According to the recall report, the accelerator pedal could get trapped under an unsecured or incompatible floor mat, allowing the vehicle to accelerate out of control. An accident could result if the the driver fails to rectify the problem quickly. Lexus will begin notifying owners of the problem starting in August, and will modify the accelerator pedal and replace any floor mats not specified for the vehicle. Owners wanting more information about the problem can contact Lexus at 1-800-255-3987.

Chevrolet Cruze Fire Risk

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General Motors (GM) has announced two recalls for certain 2011-2012 Chevrolet Cruze vehicles, both of which could result in fire, possibly causing injury or death to the vehicle occupants.

  • The first defect involves fuel tank strap attachment welds which may have been omitted during manufacturing. In an accident the tank could come loose resulting in a fuel spill that could ignite in the presence of an ignition source. GM will inspect the vehicles for missing welds and will secure the tank bracket attachment with fasteners as necessary.
  • The second problem involves the engine shield belly pan. Spilled or dripping oil could accumulate in the shield, and the hot engine or exhaust system surfaces could cause it to ignite. Dealers will modify the shield to prevent the fluid build up and will apply a protective tape to the electronic power steering wire harness to vehicles with manual transmissions.

Owners wanting more information about the problems can contact the Chevrolet owner center at 1-866-694-6546.

Defective Window Switch Investigation Expands

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The National Highway Traffic Safety Administration (NHTSA) is expanding an investigation into defective power window switches in some Toyota and GM vehicles. Both investigation began in February after vehicle owners reported intermittent power windows, the smell of smoke, and in rare occasions fires. If the investigation leads to a recall, approximately 1.4 million Toyota and 342,000 GM vehicles could be involved. The vehicles under investigation includes:

  • 2007-2009 Toyota Camry
  • 2007-2009 Toyota Yaris
  • 2008 Toyota Highlander Hybrid SUVs
  • 2006-2007 Chevrolet TrailBlazer SUVs

The NHTSA said that it also will evaluate other GM vehicles with the same underpinnings. They include:

  • Buick Rainier
  • GMC Envoy
  • Isuzu Ascender
  • Saab 9-7X SUVs

2012 Automobile Quality Reports

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According to the 2012 J.D. Power & Associates quality reports, released earlier this week, automobile manufacturers are producing higher quality vehicles than ever before, except when it comes to audio, entertainment, and navigation technologies. The overall quality of all automobile manufacturers increased by 5% since the 2011 quality reports, but “problems” related to the usability of the systems increased by 8%.

David Sargent, vice president of global automotive at J.D. Power & Associates, says that this does not mean that the quality is getting worse. “At one time, these sophisticated technologies were found only on high end vehicles. Over the past couple years, it is becoming more prevalent in mainstream automobiles. An increase in users who expect the same innovative technology found in their smartphones can quickly become dissatisfied when they can’t get it to work. Automobile manufacturers are listening to the consumers and work hard to meet their expectations but need to keep safety in mind as well. There is a learning curve for drivers to get adjusted to new features.”

This is the 26th year that J.D. Power & Associates has done their initial quality study. It not only serves as an industry benchmark for initial quality measured by the consumer, but it is also used by manufacturers to help them design and build better vehicles. Initial quality is a sign of long-term durability, which directly impacts consumer purchase decisions.