Car Lemon - Your Lemon Law Info Source

Dealership Demands BMW Back, Then Claims You Never Returned It

2008-11-21T18:46:00.000-08:00

By Meg Marco, http://consumerist.com/, Thu Nov 20 2008
(as modified by the author of this blog, including as to links and omissions)

Two years ago, a lemon law arbitrator ordered a car dealership in Queens, NY to refund a customer's money under the "lemon law." You'd think that would be the end of the story, but no... it's the beginning. Jessica Harrison says she returned the "lemon" 2004 BMW to "Planet Auto Mall" but the dealer claims that they don't know what happened to the vehicle. Now Jessica has to keep making payments on the missing BMW.

Fox 5 in New York did one of their notorious "Shame, Shame, Shame" segments about the debacle, confronting the dealer with pictures of the car being accepted and the $1700 in parking tickets that racked up as they left it out on the street for several months.

The whole story began when Jessica bought the BMW from Planet Auto Mall in Queens for around $45,000. Soon after she bought the car, it began shaking when she drove it. Planet Auto Mall's mechanics tried to fix the car — but couldn't. When she took it to a BMW specialist they found that there were so many things wrong with the vehicle that it wasn't even safe to drive. Jessica filed a "lemon law" claim against the dealership and won — but that's when her real problems started.

The auto dealer filed a legal challenge to the arbitrator's decision — based on the fact that Jessica had not returned the car. So she did. And she took pictures. And now the dealer says they never got the car. Even though it was sitting outside their dealership for months:

Fox 5: "There were like, 17 or more tickets that were issued to the car... right on the street around here."

Dealership Manager: "Sure. Somebody can say 'OK, you know what? Hey. Here is... I'm bringing the car and I'm parking it over there.'"

Fox 5: "So you're saying she might have..."

Dealership Manager: "She might have. I'm not sure."

Fox 5: "She might have put the car on the street."

Dealership Manager: "She might have put the car wherever she wants to put it."

The dealership lost their case in May, but have still not paid up because they've filed an appeal. Fox 5 stormed in with their cameras and demanded answers of the dealership's owner, but, of course, got none.

Jessica's next payment is still due on the 14th.

Planet Auto Mall [MyFoxNY]

Q&A How California's 'lemon law' applies

2008-11-18T18:28:00.000-08:00

Originally by Steven Chae, Mercury News

(as slightly modified by this blog's author, including as to added links and omitted references)

Q We purchased a Chrysler PT Cruiser about seven months ago. After less than a month, the reverse gear stopped working. Soon after that repair was done, the car started to jerk and sputter. After a month in the shop, that problem was said to be fixed, but the symptoms returned the next day. The car is now having to be taken into their shop daily because the mechanics cannot replicate the problem. Would the state "lemon law" apply here? The dealership is telling us the law only applies to cars that are sold as new.

A That's not entirely true. California's lemon law protections also apply to used vehicles if the manufacturer's new vehicle warranty is still valid. Otherwise, used cars are sold as-is.

In essence, the California Lemon law requires manufacturers to replace a vehicle or refund the purchase price if a serious warranty defect can't be fixed after a "reasonable" number of attempts; or the car has spent more than 30 days in the shop during the first 18 months of ownership.

The accepted standard for "reasonable" attempts is about four, though two attempts may suffice for serious defects that could result in death or serious injury.

Owners of problem vehicles are required to submit cases to lemon law arbitration/informal dispute resolution, if the manufacturer participates in such a program. Arbitration decisions are binding only for manufacturers. However, unhappy consumers may proceed with lemon law litigation if they wish, or arbitrate again after another unsuccessful repair attempt.

However, Chrysler is the only Big Three automaker that does not participate in the arbitration process. While hiring a lemon law attorney might be daunting, the lemon law process holds manufacturers liable for legal fees if the consumer prevails in court.

2008-11-10T17:46:00.000-08:00

Could a GM Bailout or BK Affect Your GM Warranty and/or Lemon Law Rights?

NEW YORK (CNNMoney.com) -- The stock of General Motors plunged Monday to a six-decade low as investors worried that a federal government bailout of the embattled automaker could essentially wipe out the stakes of current shareholders.

GM (GM, Fortune 500) warned on Friday, when announcing a $4.2 billion operating loss, that it was running dangerously low on the capital it needs to fund the business unless it receives government assistance or the battered U.S. auto market turns around.

GM's news and a direct appeal to Congress on Thursday by the heads of GM, Ford Motor, C hrysler LLC and the United Auto Workers union have pushed the cause for federal help forward. President-elect Barack Obama said Friday that he supported the concept of helping for the auto industry.

Over the weekend, House Speaker Nancy Pelosi, D-Calif, and Senate Majority Leader Harry Reid, R-Nev., wrote to Treasury Secretary Henry Paulson asking that he look into using a $700 bailout package originally aimed at the nation's banks and Wall Street firms to help the automakers.

The letter Pelosi and Reid suggested that the government should receive equity in the auto companies in exchange for any federal bailout.

GM stock fell nearly 22.9% on Monday to $3.36 a share, its lowest close since finishing at a split-adjusted $3.35 on June 22, 1949, according to data from the University of Chicago's Center for Research in Security Prices.

Analysts said Monday that current shareholders were now in a lose-lose situation: They may be wiped out as part of a federal bailout, or they may be wiped out if the government stays away and GM ended up in bankruptcy.

"When you come hat in hand to Washington, there's a price that has to be paid," said Art Hogan, chief market analyst at Jefferies & Co. At the least, Hogan said, the taxpayers' equity position would greatly dilute common shareholders' current holdings, valued in the market today at less than $2 billion.

"And that's assuming a bailout works," said Hogan. "Who knows if it's too little too late?"

Two analysts -- Rod Lache of Deutsche Bank and Brian Johnson of Barclay's Capital -- downgraded GM to a sell recommendation on Monday.

Lache shook up the street by setting a $0 target price target, the only such target by any analyst for any S&P 500 company, according to Thomson Reuters. Lache's note echoed the idea that shareholders stood to be wiped out either way, with a bailout being akin to a bankruptcy as far as shareholders are concerned.

Of the 12 analysts tracked by Thomson Reuters who follow GM stock, eight of them with either a sell or strong sell recommendation, three have hold recommendations and only one has a buy recommendation.

Efraim Levy, the equity auto analyst at Standard & Poor's, is one of those with a sell recommendation and a $3 target price. He agrees that even with a bailout, it's going to be a tough time ahead for GM shareholders.

"To me it looks likely there will be a bailout," said Levy. "But the situation keeps looking worse and worse. You keep thinking you've hit the center of the storm, and we'll come out the other end and things will get better, but every month demand shrinks."

GM Chief Executive Rick Wagoner said during the conference call with investors Friday that the company isn't ready to speculate on the chance of bankruptcy, despite their dire cash situation.

Company executives said they were encouraged by the support the industry has been getting on possible federal assistance, but GM President Fritz Henderson said it was "premature at this point" to discuss whether GM would grant shareholders stock or stock warrants in return for assistance.

By Chris Isidore, CNNMoney.com senior writer
Source: www.CNN.com
(as modified by the author of this blog, including as to links)
_______________

Learn about your GM manufacturer warranty, State lemon law rights, federal breach of warranty/lemon law rights, and the GM
technical service bulletins and recalls your vehicle needs before a potential GM bankruptcy or bail-out.

2008-10-14T08:46:00.000-07:00

Next time you buy a used car, don't get squeezed by a Tropical Storm Fay lemon

When Tropical Storm Fay blew through town in August, some of the more striking images were of cars and trucks half-submerged in murky floodwaters.

Dozens of local vehicles were among the 100,000 cars damaged nationwide by Fay, said Chris Basso, spokesman for Carfax, provider of vehicle histories.

Such vehicles suffer from electrical problems and malfunctioning antilock brakes and airbags. Still, more than half will be resold to unwitting consumers, often after being refurbished and moved across state lines, Basso said.

"They're called gray-market cars," said Paul Mattfield, owner of Indian River Insurance Agency in Fellsmere. "They've been in accidents, but they don't look like they've been in accidents."

In most states, including Florida, a salvage title is reissued on the car to indicate flood damage. But variations in state title law and lack of communication between state agencies creates loopholes.

Title history can be erased by title-washing, when an individual moves the car to a state that doesn't recognize the title. When that state reissues the auto title, the damage often goes unrecorded. Another common technique is VIN cloning, when an individual swaps the car's vehicle information number with that of an undamaged car in another state.

State lemon laws do not cover used cars, and buyers have little recourse if they discover flood damage after the fact.

"If you purchase a car 'as is,' then you're kind of out of luck," said Stuart-based attorney Lee Feinberg. "There's nothing you can do about it unless you can show (the dealer) knew something was wrong with the vehicle — it's tough to prove."

Experienced car dealers say, however, it's almost impossible to erase all signs of the original VIN number, but you must know where to look.

"The VIN number — that's your thumbprint," said John Morello, general manager for City Cars in Fort Pierce. "It's on the fender; it's on the motor."

In September, a federal judge in California imposed a six-month deadline on the government to enforce a law Congress passed in 1992. Under the ruling, insurance companies, salvage yards and junkyards will be required to report totaled vehicles to a national database.

For now, experts recommend having a mechanic check the car for rust, discoloration and other signs of water damage.

"You can't cover it up," said Hoyt Roberts, president of Stuart-based used car dealer Good Rides Inc. "You can put all the perfume stuff you want; it's still going to have a musty smell."

Source: DEEPA SEETHARAMAN, TC Palm.com

2008-10-08T14:38:00.000-07:00

Lawmakers should review Lemon Law

Fran Fontanez and his wife bought their dream car at a Skowhegan dealer in 2006. A 2003 Saab 9-3 with 23,000 miles on the odometer, it had heated leather seats and was a $17,000 "extravagance" that Fontanez and his wife could finally afford.

Now, the car sits, idle, in the Fontanez garage. After 17 visits to the repair shop and almost $10,000 in work that was covered under the warranty, the car engine kicked the bucket and no longer runs. When the engine died at 44,000 miles, the warranty no longer applied and the Skowhegan dealer, Cold Brook Saab, wouldn't take the car back.

It turns out, the fancy Saab was a lemon. It was branded a lemon in California, where the law required that dud cars must be bought back by manufacturers. While Fontanez knew that the car was a "buyback," he didn't know that Saab had re-acquired the car.

That's because Maine law -- unlike a number of other states -- doesn't require that disclosure on cars that come in from other states. Maine law does require that cars that are declared lemons in Maine and are resold in the state must disclose that fact.

"Lemon buybacks" are a problem across the country. While some states, such as Minnesota and California, require a car title be branded with the label "lemon" once it's re-acquired by the manufacturer, that doesn't prevent manufacturers from reselling those cars to dealers in other states that don't have such labeling laws.

Manufacturers may claim that they've fixed the problems with the lemons they're reselling -- but given that those cars have been deemed lemons because those problems couldn't be fixed, that's a stretch. And at the very least, if those cars have, indeed, been fully repaired, it's still reasonable that prospective buyers should be informed about the full history of the vehicle they want to buy.

State Sen. Joseph Brannigan, D-Cumberland, the lead sponsor of Maine's original lemon law, has just this week, in response to the Fontanez situation, asked Attorney General Steven Rowe to draft legislation requiring disclosure for lemons from out of state that are resold in Maine.

Brannigan's fellow lawmakers should seriously consider this proposal and determine whether it offers an appropriate level of protection for consumers.

In the meantime, consumer experts say there are steps prospective used-car buyers can take to learn about a car's history.

Before you buy a used car, take advantage of services like CARFAX, which will help you research the general history of the vehicle. Be careful about late-model used cars with low mileage that are being sold as "demonstrator" or "executive cars" because that's one way lemons may be sold. And if you do purchase a car with a murky background, make sure you fully understand the warranty that comes with it, if there is one.

And finally, it's the rare car dealer who is disreputable. But that doesn't let you, the buyer, off the hook for doing your homework.

Source: Kennebec Journal, ME - Sep 23, 2008

2008-09-24T10:51:00.000-07:00

Lemon Laws

Lemon laws are American state laws that provide a remedy for purchasers of cars that repeatedly fail to meet standards of quality and performance. These cars are called lemons. The federal lemon law (the Magnuson-Moss Warranty Act) protects citizens of all states. State lemon laws vary by state and may not necessarily cover used or leased cars. The rights afforded to consumers by lemon laws may exceed the warranties expressed in purchase contracts. Lemon law is the common nickname for these laws, but each state has different names for the laws and acts.

In California, lemon laws cover anything mechanical, as do the federal lemon laws. The federal lemon law also provides that the warranter may be obligated to pay your attorney fees if you prevail in a lemon law suit, as do most state lemon laws.

Used Car Purchases

If you purchased a used car there are two situations in which you may be qualified for cash or other lemon law benefits:

Situation #1: You may be entitled to compensation for breach of warranty if you had one of the following warranties:

Any warranty left from the manufacturer when you purchased your vehicle (for example, almost all vehicles sold with fewer than 36,000 miles will have this. But if the warranty is longer, you may have even more time).
Your vehicle was "Certified" by the Manufacturer (in which case it came with a short Manufacturer's Warranty, typically 1 year).

You purchased an Extended Warranty backed by the Manufacturer (typically 5 years or longer).

Normally, these types of cases fall outside the scope of the state lemon law but are covered under special federal lemon laws.

Situation #2: When No Manufacturer's Warranty Exists If you do not have a manufacturer's warranty of any kind you may be entitled to compensation for violations of consumer protection laws that fall outside of the lemon laws.

The following is a list of some of the problems and/or issues which may be present in your vehicle.

- Prior history of mechanical problems known to the seller: Laundered Lemon.
- Previously salvaged or wrecked.
- Fraudulently rolled back odometer.
- Rental car, police car, taxi, or similar.
- Stolen, stripped and rebuilt.
- Involved in a flood.

Lemon Laws vary from state to state.

If you knowingly purchase a car in "as is" condition you DO NOT void your rights under applicable lemon laws.

Technical service bulletins are instructions from the manufacturer that alert dealerships of specific defects or necessary repairs in certain models. Usually car dealers will not voluntarily inform you about such defects; however technical service bulletins do not necessarily mean the vehicle has a recall or mean the repair will be paid for by the manufacturer.

Lemon laws are not limited to cars. There are RV lemon laws, boat lemon laws, motorcycle, wheelchair, and computer lemon laws.

Source: Wikipedia

For more information about the Lemon Law visit www.CarLemon.com

GM Recalls 2006-2008 HHR's

2008-09-10T11:13:00.000-07:00

General Motors Corp. is recalling about 300,000 Chevrolet HHR SUVs in the United States to fix a storage bin door that failed to remain closed during government testing.

The National Highway Traffic Safety Administration said on its Web site Monday that the recall involves HHR SUVs from the 2006-08 model years.

During a test last spring, the glove compartment box in the top center of the instrument panel failed to remain closed in line with a federal safety standard. GM will send owners a latch reinforcement.

Owners will receive instructions to install the part or have their dealer install it.

From the Free Press, FreePress.com

Recalls for Chevrolet by Model

Woman Files Texas Lemon Law Claim

2008-09-05T09:06:00.000-07:00

Orange, Texas -- Claiming she was sold a lemon, Terri Jones has filed suit against Harmon Chevrolet and General Motors Corp.

Jones' suit was filed Aug. 13 in Orange County District Court.

In her suit, Jones says she purchased a Chevy Equinox from Harmon Chevrolet on Aug. 18, 2006. During the first year of ownership, the vehicle's ignition switch allegedly malfunctioned on several occasions.

"Since owning the vehicle, and within the period of express warranty, the ignition switch … required replacement four times," the suit says.

"Prior to the expiration of the express warranty, plaintiff brought the vehicle to Harmon … for repair, and the defendants refused to honor the warranty."

Jones alleges both defendants are guilty of breaching their warranty and of violating the Texas Deceptive Trade Practices Act.

"The conduct of the defendants …. Was a proximate cause of plaintiff's economic damages," the suit says.

Jones is requesting a trial by jury and is represented by attorney Clay Dugas.

The case has been assigned to Judge Pat Clark, 128th Judicial District.

Case No. A-080316-c

Article by David Yates, Southeast Texas Record -

Branding Car Titles Of Lemons Is Now The Law in Minnesota

2008-08-25T06:34:00.000-07:00

Call it the scarlet letter for certified clunkers.

This month, Minnesota got in step with a number of other states by requiring all vehicles that have been bought back by manufacturers under "lemon laws" to carry the distinction on their titles.

Lemon laws generally require carmakers to buy back a vehicle that's under warranty if it has critical or chronic defects.

Titles issued in Minnesota can already be "branded" if the vehicles have been drowned, salvaged from a total loss or rebuilt after a terrible accident. The titles feature such alarming designations as "FLOOD DAMAGED," "PRIOR SALVAGE," "REBUILT" and "RECONST."

But until this year, the Minnesota Driver and Vehicle Services agency had no authority to brand a car's title if it was part of a manufacturer buy-back in Minnesota or if it arrived from another state with that stigma, said Larry Ollila, vehicle services program director.

"It's something we put forward as an initiative because vehicles were coming in from other states with that brand," Ollila said. "We didn't have the ability to carry forward the brand. It's a consumer awareness issue.

Ollila said he didn't know how many vehicle titles in Minnesota would have to carry the stamp, although the first "LEMON LAW VEHICLE" brand went on a title on Aug. 1, the day the law went into effect.

The new law comes too late for Angela Lembo of Bloomington, who bought a 2003 Volkswagen Jetta last year. The Jetta had been part of a lemon law buyback program in California, but by the time Lembo bought the car in Minnesota, the title didn't show it.

Lembo found out about the Jetta's checkered history only when she tried to resell it and the buyer made the discovery during a title search. She welcomes the new law.

"It's no different than buying a car with a salvage title," she said. "You know what you're getting into."

Article by James Eli Shiffer

Minneapolis StarTribune.com

Sour deal? Buyers didn't get Lemon Law disclosures

2008-08-18T06:58:00.000-07:00

Seventy-nine customers who bought secondhand Hummers and Cadillac Escalades from a dealership in Fife didn't get all the legal disclosures about the vehicles' history, according to the state Attorney General's Office.

The AG's office reached a settlement Friday with McCann Motors in which the auto dealership agreed to notify the customers of what happened and offer to work out a suitable resolution. The dealership did not admit wrongdoing but agreed to pay $12,000 in state attorneys' fees and costs.

Buyers didn't get a notice that the cars were reacquired by their manufacturer under California's Lemon Law before being resold in Washington, the office said.

If you buy a car in Washington, the state's Lemon Law and other consumer laws protect you by requiring certain disclosures about the vehicle.

"The price of prestige probably was too high for some of these buyers who paid up to $50,000 for luxury cars but may have negotiated differently had they received the required Lemon Law disclosures," consumer protection division chief Doug Walsh said.

The buyers signed paperwork that included a notice that the cars had been repurchased under a California Lemon buyback law, but they didn't get special disclosures that the state contends would have made it more obvious that these cars could have potential problems, he added.

State law requires that a bright yellow flier be placed in the window of the car that reads "Lemon Law Resale Notice of Nonconformity or Serious Safety Defect" and that customers get documents telling them that the title will include a statement that the vehicle was previously returned to the manufacturer and this may affect the vehicle's future resale value.

The state alleged that failure to provide those disclosures violated state laws.

Article by Phuong Cat Le, Consumer Smarts Blog

SeattlePI.com

Warranty Works on Front End Shake

2008-08-06T12:35:00.000-07:00

Bradley Joyce was preparing for grave disappointment.

Shortly after purchasing an $8,724 Thruxton motorcycle from Clinton Cycles in Camp Springs, the geographic information systems manager said he felt "a significant and dangerous feeling wobble" in the bike at speeds over 45 miles per hour.

Several attempts to fix the wobble got him nowhere. He was without his bike for more than a month. Joyce feared that his journey into warranty hell would only lead to no good and an eventual lemon law claim.

Warranties make my head hurt. In most cases that end up here, companies flub the job and tick off the customer. Loopholes in the law, or the lack of any law, further fail consumers. But Clinton Cycles and manufacturer Triumph USA proved Joyce wrong, and Maryland law would have protected him had the situation gone terribly awry.

Excuse my joy. It's not every day I get good consumer news like that, especially after several bleak moments for Joyce.

The Baltimore resident's problem started on July 21 when he took his bike into Pete's Cycles in Fullerton, an authorized Triumph dealer, for a 500-mile initial inspection. Joyce asked the service department to take a closer look for a shake in the front end.

"They balanced the front wheel," said Joyce, who paid $260 for the service visit. "It didn't help."

Joyce called Pete's back to tell them the fix didn't work. They put him on a waiting list. A call back to the original dealer that sold him the bike, Clinton, got Joyce an appointment right away.

On June 28, Joyce dropped the bike off and Clinton diagnosed the problems as "a head bearing in need of adjustment." They tightened it. Joyce started to take the bike home - and turned back around. "The problem was still there," he said.

On July 3, he called Clinton to check on the bike's progress. No one had looked at it yet. That evening, the dealership called to say it swapped the wheel out, but the problem persisted. So Clinton did a complete head bearing replacement under warranty.

The wobble won the day.

On the fifth attempt, even as Joyce's patience was worn microscopically thin, Clinton disassembled the fork tubes, which deal with the front-end suspension and how the bike handles. And still, wobble - 5, Clinton - 0.

At wit's end, Joyce wrote a letter to Triumph's head of customer relations, Peter Carleo. He ended the e-mail by saying that if the problem was not resolved, "I intend to turn the matter over to the state lemon laws."

Lemon laws are great if your vehicle is protected. Not all lemon laws are equal, though. Depending on which state you live in, motorcycles and recreational vehicles may not qualify.

"Most people think they are automatically covered," said Ronald Burdge, an Ohio attorney who specializes in lemon laws. "The amount of lemon law coverage you have might depend on the number of wheels you have. Four wheels? You're probably covered. Three? Probably not. Two wheels, it's 50-50. A lot of states don't cover motorcycles. It makes no logical sense."

The beauty of state lemon laws is that most clearly define what qualifies your vehicle, such as how long and how many times the vehicle needs repair work for the same problem, or specific problems. If you live in a state where your motorcycle or RV doesn't qualify, there is a federal consumer law that could provide some protection, but the presumptions aren't clearly defined.

Luckily for Joyce, Maryland's law does protect motorcycles (but not RVs). Under our law, four unsuccessful repairs or 30 calendar days out of service or one unsuccessful repair of a braking or steering system within 15 months or 15,000 miles allows a lemon law claim.

But here's the even better part of this story.

On the sixth and final attempt, Clinton was set to replace the entire front end of the bike. The dealership called in its master mechanic, who decided to swap out the front wheel one more time.

The wobble vanished, and so did Joyce's consternation - especially when Clinton charged him nothing for any of the 36 hours of work or parts, which would have cost thousands under normal circumstances.

"Ultimately, the people down at Clinton Cycles worked very hard to get my problem fixed," Joyce said. "The bike rides perfectly now."

There are a number of really good lessons here.

•Check that your state lemon law covers what you're buying. If it doesn't, see if a neighboring state has a stronger law that protects nonresidents and consider buying your motorcycle, RV or disability van (which is afforded even fewer protections) from there.

•Deal with the dealer you originally bought your vehicle from, so that your problems are a priority to them.

•Stay on top of the problem. Joyce never let his concern go for more than a week without checking in with Clinton, and he was always politely persistent.

•Go over heads if the problem persists. Joyce wrote a letter to Triumph's Carleo, who made sure that the dealership was communicating with the manufacturer's techs to diagnose the problem. Carleo, who is based in Georgia, was also prepared to fly to Maryland to help if need be.

"Some of the timing problem was based on the techs not finding what the problem was," Carleo said. "Mechanical conditions can be hard to diagnose. These things can take time. We want to rule everything out. Had the mechanical conditions not been resolved, we would have replaced the bike if need be. We take customer satisfaction seriously at Triumph."

Which bring us to the final lesson, which is that a couple of failed attempts to fix a mechanical problem might not necessarily mean that you're getting jacked around. But be sure to keep all correspondence, notes and maintenance records with the dealer and manufacturer and document the time, date and notes for every call. If you fear after a first or second fix that you own a lemon, send a certified letter to the manufacturer.

Do exercise patience, but don't be taken for a fool.

Article by Dan Thanh Dang, Baltimore Sun.com

AZ Probes Complaints Against Auto Dealership

2008-07-28T08:21:00.000-07:00

Selling damaged vehicles. Breaking rules. Calling cops on customers who complain.

A Tucson car lot managed by ex-convicts did all those things and now is under state investigation for unlawful business practices. Regulators are probing reports that the dealership sold a wrecked vehicle that was legally unfit to drive, and that staffers repeatedly put inaccurate vehicle information on state records, violating Arizona law.

Wildcat Mitsubishi, 5200 E. Speedway, has been under state scrutiny since the Army banned local soldiers from buying cars there and at Wildcat's sister dealership, Ideal Automotive Group, 645 S. Highway 92 in Sierra Vista. The May ban followed complaints soldiers were threatened, cheated or misled.

Both dealerships also are under investigation for operating without state-required financing licenses for two years, as long as Wildcat has been open. The licenses help protect customers who disclose sensitive financial data in loan applications.

Already, the problems have led to a lawsuit, government complaints and police calls as dealership employees and customers report each other to authorities.

"A culture of contempt for their customers," is how Tom Collier, president of the Southern Arizona Better Business Bureau, described the attitude of the dealerships' owners.

Tucson lawyer Timothy Remick, who represents owners Richard and Pat Johnston of Hereford, said his clients value their customers and are working hard to fix any shortcomings.

He acknowledged Wildcat has ex-convicts on staff, which is legal in Arizona but not in many other states. He also agreed the dealerships don't have proper licensing, and that Wildcat submitted inaccurate vehicle data to the state and sold a vehicle that wasn't legal to sell.

Each time those things occurred, he said, it was due to oversights, mistakes or ignorance of the law.

Ideal Automotive Group of Sierra Vista has no connection to a Tucson business with a similar name, I-Deal Auto Sales, 2307 N. Stone Ave.

Wrong VINs

In five cases in 2007, detailed in documents obtained by the Arizona Daily Star, Wildcat employees entered inaccurate vehicle identification numbers on applications for temporary registration permits.

In one case, the wrong VIN caused the state to issue a permit for an unroadworthy vehicle, allowing it to be driven off the lot by a customer without raising a red flag in the state's computerized tracking setup.

"There is no way we would have issued a temporary registration permit for that vehicle if the real VIN had been entered into our system," said Cydney DeModica, a spokeswoman for the Arizona Department of Transportation's Motor Vehicle Division, which licenses auto sellers and is probing the incidents.

Michael Wilson of San Manuel bought the damaged truck from Wildcat and is still driving it, even though it's "falling apart," said Art Weiss, his attorney.

Wildcat acquired the 2005 Chevy Silverado at a local auto auction. Its frame was so bent that a previous insurer had declared it a writeoff, making it a salvage vehicle under state law.

"Salvage vehicles are often purchased by automotive professionals for the parts or for restoring the vehicle to driveable condition," said Remick, the dealership's lawyer.

No way, said Bailey Wood of the National Automobile Dealers Association, a Virginia-based trade group that represents about 20,000 new-vehicle dealerships nationwide.

"Dealers do not want salvage vehicles on their lots, period," he said. In fact, the trade group is pushing for a national database of salvage vehicles, so dealers and consumers don't unknowingly end up with them.

In Arizona, it is illegal to re-sell salvage vehicles on a car lot. They can be sold only after their titles are restored — after extensive repairs, state safety inspections and ample consumer warnings. A state inspection on Wilson's truck wasn't done until two months after the sale.

Remick said Wildcat didn't realize that state law bans the retail sale of salvage vehicles.

"Wildcat now knows they were wrong," he said in an e-mail to the Star.

He said Wilson was told the truck was salvage before he bought it — which Wilson denies. Either way, the sale was illegal, DeModica said.

Remick said Wilson was offered a full refund. That offer materialized only after Wilson hired a lawyer, Weiss said. Wilson is suing because he also wants Wildcat to pay his legal costs.

The case is expected to go to arbitration in August.

State aid

Some customers have gone to government agencies for help.

Tiffany Luckey of Tucson turned to Arizona's attorney general when Wildcat wouldn't give back her deposit after selling her a previously wrecked Mitsubishi Lancer, she said.

In January, the 22-year-old college student put down $843 on the car and was allowed to take it home pending financing. But it had problems, she said: The "check engine" light was always on, the car pulled to the right and the horn didn't work.

A few weeks later, Luckey said, the dealership called to say her car had a salvage title. Remick, the dealership lawyer, told the Star the car actually was a restored salvage vehicle that had passed state inspection.

Wildcat said she could return the car, so she did and asked for her deposit money. The salesman said the owner wasn't there to sign a check and told her to come back.

So she went back, repeatedly. The owner was never there.

"There was a time when I waited three hours," she said.

Luckey told the dealership she was going to the Better Business Bureau. Afterward, she said, employees hung up whenever she called.

She also complained to the attorney general. A few weeks later, a state official called to say she was getting her refund.

Remick said Wildcat intended to return the money all along. Luckey "would have been given that refund whether or not she had filed a complaint with the Attorney General's Office."

Since 2003, another state agency has intervened seven times to help Ideal customers who were left with vehicles they couldn't legally drive because the Sierra Vista dealership failed to provide license plates, registrations and titles on time, state officials say.

The customers turned to the MVD for help when their temporary registrations expired and weeks passed without any action by Ideal, said DeModica, the agency spokeswoman. Officials there contacted the dealership on behalf of customers to settle the issues, she said.

Remick couldn't be reached late Friday for comment on the timeliness problems.

Run-ins with regulators

ADOT's inspector general censured Wildcat in May 2007 for misusing temporary registration plates and for selling a vehicle without a proper title.

The agency issued a cease-and-desist order, telling the dealership to stop the practices or face further state action, including fines.

Similar state orders were issued against Ideal in 2005 for failing to forward a registration application to the state, and in 2006 for misuse of a dealer plate.

Remick said his clients weren't aware of those enforcement actions. He was aware of a court case involving alleged misuse of a dealer plate but said it was dismissed.

Both dealerships have run afoul of the Arizona Department of Financial Institutions. A state registry shows neither has a required license to finance vehicles.

Remick said that's because the Johnstons — who have been in the car-sales business for more than 15 years — forgot for the last two years to renew Ideal's license. Wildcat never had the license because the Johnstons didn't realize they needed a separate one for the Tucson site, he said. They intend to correct the oversights, he said.

Remick said his clients "were never notified that the payment was due or that the license had expired." The state says dealerships routinely are mailed three notices: one before expiration, one just afterward, and the last when a license is canceled for nonpayment.

Financing vehicles without a license can carry steep penalties: up to $5,000 a day for each violation.

An official at Mitsubishi's corporate office said he was unaware of such problems at the local dealerships.

The company doesn't make franchisees agree to formal standards or ethics, but they're expected to conduct business "legally and appropriately," said Dan Irvin, a spokesman for Mitsubishi Motors North America.

Ex-cons

Many dealerships weed out job applicants with criminal pasts, and many states require it. Remick said his clients don't do background checks because they believe in second chances for criminals who have served their time.

"Wildcat is truly an equal opportunity employer," he said.

Thus it came to pass that Wildcat's payroll last year included staffers with convictions including attempted aggravated assault with a weapon, threats and intimidation, weapons misconduct, possession of drug paraphernalia, and false reporting to law enforcement.

Despite the commitment to second chances, one Wildcat staffer with six criminal convictions was fired several months ago, after more than a year on the job.

Heath Johnston, 36, Wildcat's general manager and the son of its owners, was convicted in 2004 of attempted aggravated assault with a deadly weapon or dangerous instrument, for grazing a Fort Huachuca soldier with his truck after wrongly identifying the soldier as a participant in a bar fight Johnston had just left in Sierra Vista.

The soldier, who was not in uniform, jumped from the truck's path, but Johnston continued, hitting the victim's car and dragging it 50 feet before he left without checking on the soldier's welfare.

The soldier was too afraid of Johnston to go to court for the sentencing hearing in the felony case, he wrote to the judge.

"He almost killed me. I fear he will come back against me in the future," the letter said. "I am a U.S. Army soldier and I know dangerous situations."

Heath Johnston was sentenced to four years' probation and the two days in jail he'd already served and was ordered to pay the soldier's medical bills and other costs.

"He has fulfilled his obligation to society and has moved on with his life," Remick said.

Heath Johnston's 34-year-old brother, Beau Johnston — general manager of the family's Sierra Vista dealership — is awaiting trial on a felony charge of knowingly possessing stolen property valued at more than $25,000.

Police found a pilfered piece of heavy construction equipment — a 2004 John Deere tractor/excavator — in his backyard last year. Remick said his client is confident he will be exonerated. Beau Johnston told police he didn't know the machine was stolen.

In many states, people with criminal histories are banned from owning or working in auto dealerships. California, for instance, requires owners and staffers to be licensed, a vetting that disqualifies ex-cons.

Arizona requires background checks only for owners. Richard and Pat Johnston, owners of Wildcat and Ideal, have clean criminal records, so they qualify. And under state law, they can hire anyone they want, said DeModica of the MVD.

911 calls

Since Wildcat opened in 2006, the dealership and its customers have called police on each other at least nine times, sometimes alleging violence, Tucson Police Department records show.

While no convictions resulted, the records show how Wildcat was viewed by unhappy customers, and vice versa.

Former Davis-Monthan airman Chris Coleman had just been honorably discharged from the military when he went to Wildcat in February to buy a car. He ended up calling 911 from an office inside the dealership, saying he'd just been assaulted by general manager Heath Johnston.

Officers were greeted by Heath Johnston and Wildcat sales manager Jason Sackett. They said they suspected Coleman was not being candid about his finances, so they took him into an office and asked him to access his bank account online to prove he had money for a down payment. Coleman got upset, took a swing and had to be restrained, they said.

Coleman told police he was the one who'd been attacked. He said he'd just sat down to use the computer when Heath Johnston "pushed him to the ground and started hitting him," a police report said.

Coleman's injuries — minor abrasions on both hands and a forearm and a small cut on the top of his head — were photographed by police as potential evidence.

The dealership didn't want to press charges. Coleman wanted Johnston charged with assault, but no charges were filed "due to the lack of an independent witness," the police report said. Coleman couldn't be reached for comment.

Police calls to Wildcat began even before it formally opened in September 2006. In July that year, while final preparations were still in progress, Heath Johnston called 911 to report "trouble with a customer."

He told police a customer had been having problems with her car and that the dealership had not yet been able to resolve them. He said the woman lost her temper, swore, and knocked over a pile of papers on his desk.

Johnston wanted to prosecute so police charged the woman with disorderly conduct, trespassing and contributing to the delinquency of minors for using expletives in the presence of her children. All the charges later were dismissed.

Soldiers

Fort Huachuca has received about two dozen complaints from soldiers upset by the treatment they received at Wildcat and Ideal. That prompted its commander to take the rare step of banning soldiers from doing business there. The ban also covers a small used-car lot in Huachuca City owned by Ideal.

Army officials said the ban was necessary to protect soldiers, who move so frequently they often can't take cases to court if auto deals go sour. At least once, a deployed soldier was trying to deal with his car problems from Iraq, they said.

One of the Army complainants was 29-year-old Warrant Officer Cassie Story, a former instructor in the fort's unmanned-aerial-vehicle program now serving in Iraq.

Last year she bought a new Mitsubishi at Wildcat in Tucson. When the car had problems, Story took it for warranty service to Ideal, which also sells Mitsubishis.

She had a recurring problem with window tinting that had not hardened properly, gumming up the window mechanisms. When a phone surveyor called from Mitsubishi to see how she liked her new car, Story mentioned the window issue.

She said that when she went back to Ideal after work that day to pick up her car, general manager Beau Johnston was visibly angry.

"He told me if I ever filed any kind of complaint against his company again, that I would not be allowed to bring my car back for any kind of service," she said.

Story said a scuffle nearly erupted when another soldier began to fear for her safety. "The soldier who was with me wanted to step in and punch him," she said.

Remick, the Johnstons' lawyer, says it was Story, not Beau Johnston, who was out of line.

Remick said the phone surveyor had asked Story to limit her comments to work done by Ideal, which had not done the window tinting. Story "became enraged and difficult to deal with," he said. "At that point she became belligerent and accusatory."

Story's account is one of several similar complaints to Fort Huachuca.

Soldiers said they "were threatened with retribution," post spokeswoman Tanja Linton said. A commonly reported threat was "we will call the cops and have you charged with assault," Linton said.

Beau Johnston told the Star in May that some friction occurred when young soldiers applied for auto financing and were allowed to take vehicles home before final credit approvals were in.

If the soldiers came back as bad risks, the cars then were taken away or soldiers were asked to put down more money. That created so much ill will that the dealerships stopped letting soldiers take cars home before deals were final, he said.

Remick denied soldiers were threatened and said the Johnstons are making strides to increase good will between the dealerships and the Army. They are confident the ban will be lifted soon.

For example, he said, Ideal recently entered into a special arbitration arrangement with the Better Business Bureau to quickly resolve concerns reported by customers. That arrangement, though, covers only the Sierra Vista car lot and excluded the Tucson dealership at the request of the Johnstons' attorney, said Collier, the BBB president.

Linton said the Army is willing to reconsider if the Johnstons can prove to commanders' satisfaction that past problems have been corrected.

Until then, she said, "we are going to protect our soldiers."

Article by Carol Ann Alaimo and ShelleyShelton
Arizona Daily Star

Are you the victim of auto dealer fraud in Arizona?

The Lemon law - Do Some Homework Before Buying Used Car

2008-07-17T14:05:00.000-07:00

First, know what it's worth. Just because the price looks good doesn't mean the vehicle may not need some repair work. The Kelley Blue Book and N.A.D.A. Appraisal Guides have been the standard for determining car values for years, and now you can check prices online at www.kbb.com or nadaguides.com. Secondly, know the vehicle's history. If you have the vehicle identification number, you can use a service such as Carfax to purchase a history report on that vehicle. However, the report will only show what has been reported to insurance companies or government agencies. If the vehicle was in a flood, for example, and this was not reported, that information won't show up. Go to www.carfax.com or AAA.com.

Next, check the mileage and gauge it against what you see. If the odometer shows 5,000 miles, for example, but the pedal pads are worn out, that's a clue. Also, look for doorjamb stickers or papers in the glove compartment that may contradict the mileage.

Check tire wheels or rims for marks from wheel weights. The more marks, the more often the tires have been balanced, indicating age. Has the vehicle just been completely repainted? If the mileage is low, this may mean it has been in a wreck. On the other hand, if the vehicle is older, a new paint job may have been called for.

Turn the key on with the engine off and compare the warning lights you see with what the owner's manual says you should be seeing.

If any warning light doesn't work, a different warning light should go on — the one in your head. Someone may have tampered with the vehicle to hide a problem.

Finally, have the car thoroughly examined by an auto technician you trust. If the car's owner or salesperson won't let you have the vehicle checked, pass on it — they're hiding something.

Most dealers provide at least some level of warranty on their used cars. Read the fine print carefully. And consider an aftermarket warranty to further protect yourself. If you're buying from an individual, you're totally on your own from the moment you take possession.

Article by Chuck Mai

NewsOK.com

Research the lemon laws in your state.

Former Car Dealer Pleads Guilty to 5 Fraud Charges, Agrees to Pay $142,626

2008-06-26T13:40:00.000-07:00

A former Waynesboro car dealer facing a slew of charges alleging fraudulent business practices pleaded guilty Monday to five misdemeanor counts and agreed to pay $142,626 in restitution to past customers in a deal with prosecutors to avoid jail time.

Rodney Price, 42, owner of RSD Motors – located on Apple Tree Lane until it was shut down in March – was originally charged with 33 misdemeanor counts of selling a vehicle without a title, two misdemeanor counts of improper registration material, four felony charges of disposing of mortgaged property, three felony counts of obtaining money under false pretenses and one felony count of embezzlement, according to court documents.

Prosecutors later streamlined the case to focus on five RSD customers who never received titles to vehicles they purchased – the same complaint voiced by dozens of the dealership’s other customers, Assistant Commonwealth’s Attorney Jim Camblos said. In most of those cases, Price neglected to pay off old loans on used vehicles before selling them to new owners – this meant the previous owners still had the outstanding loan under their names, and the new owners were unable to obtain car insurance or legal titles.

In some cases, Price also neglected to pay state taxes, Camblos said.
“He wasn’t minding the store ... ,” Camblos said. “He wasn’t taking care of business with Richmond, he was not paying off loans and he was causing a lot of havoc for a lot of customers.”
Under the terms of the deal with prosecutors, Price pleaded guilty to five misdemeanor counts of fraudulently selling a motor vehicle, with six-month jail sentences for each charge suspended on the condition that he pay the $142,626 in restitution within a two-year period.

Several former customers were on hand Monday to witness Price’s day in court. While most felt the agreement was in their best interest and would expedite financial compensation, some said it was also difficult to accept.

“I felt sorry for him until he got to walk through that door,” said Waynesboro resident Pat Templeton as she gestured toward the courthouse parking lot. Templeton said she payed Price cash several months ago for a 1996 Jeep, but still lacks the vehicle’s title.

Sonya Mays, of Waynesboro, said she had to let the 2001 Ford Windstar she purchased at RSD Motors sit unused for months because she didn’t have its title. “We’ve been making payments for five months on a vehicle we just started driving 30 days ago,” Mays said.

Camblos said the plea deal was reached in part because Price had no prior criminal record.

Story by Cleve Wiese, NewsVirginian.com

Victim of Auto Fraud? Find a consumer lawyer to help you!

Chrsyler Suing Magna Over Seats

2008-06-20T11:44:00.000-07:00

Chrysler is suing Magna International for allegedly supplying the automaker with seat warmers that overheated and could cause serious burns.

Chrysler filed a claim in Michigan earlier this year that charged Magna is responsible for a technical flaw in some minivan seats that can result in burns to riders, especially paraplegics who cannot feel their seats overheating, industry journal Automotive News reported yesterday.

The seat warmers were the subject of two recalls in 2005 involving 1999 and 2000 Chrysler Town & Country and Dodge Grand Caravan minivans.

According to the lawsuit, Aurora-based Magna has denied responsibility for the recalls and objected to reimbursing Chrysler for the cost of the recall, which involved replacing defective heated seat assemblies.

Chrysler told the U.S. National Highway Traffic Safety Administration in 2004 that it had received 221 customer complaints about hot seats. Twenty-six complaints involved minor injuries and 33 alleged fires, the company said.

The automaker noted that the majority of injury reports referred to "only a burning feeling or sensation."

Norwegian-based Kongsberg Automotive supplied the heated seat assemblies to Magna.

Magna would not comment on the claim.

Tony Van Alphen, TheStar.com

Chrysler Recalls, Is Your Car a Lemon?

GM's Next Battle: Win Customers Back

2008-06-16T08:12:00.000-07:00

General Motors resembles an aging starlet fighting the ravages of time: Despite a crash diet and costly makeover, her pool of loyal admirers keeps shrinking.

At GM's annual meeting Tuesday morning, CEO Rick Wagoner will outline new revamp plans, likely including cost cutting and an effort to ramp up output of more fuel-efficient cars.

But a dramatic turnaround won't happen unless GM can persuade owners of import vehicles to buy its cars again. Drivers these days don't show much allegiance to Detroit. Even with dealers doling out cash rebates, warranties and other incentives, some 54% of car buyers won't even consider driving a domestic marque, according to J.D. Power & Associates.

GM has made headway in winning back car drivers. Sales of the Chevy Cobalt and Malibu have jumped this year. But it seems to be playing catch-up to Honda and Toyota in the loyalty race. Only 3% of GM vehicles sold through its dealerships go to customers trading in a Honda or Toyota, according to J.D. Power.

GM's sales data for May, also due Tuesday, are expected to show another decline that could push its domestic market share to less than 20%. The skid, in short, might not be over yet.

Article by Mark Gongloff and Karen Richardson WSJ.com (Wall Street Journal News)

GM Warranty Information

Texas Lemon Law Information

Volkswagen Recalls 2009 Tiguan and 2008 Passat for "Engine Surge"

2008-06-11T10:50:00.000-07:00

WASHINGTON — Volkswagen is recalling approximately 4,000 of its 2008 passats and 2009 Tiguans.

The automaker will fix engine control module software that can trigger an unexpected increase in engine rpm, according to the National Highway Traffic Safety Administration.

The recall has started, and dealers are being told by the federal government not to sell or lease affected vehicles until the safety recall has been completed, according to recall documents posted on the NHTSA Web site.

"These vehicles have an engine control module containing software that may not properly control engine idle with the air-conditioning turned on," NHTSA said in its summary of the problem. "In rare cases, the ECM may unexpectedly increase engine rpm. An engine surge caused by an unexpected increase in engine rpm may surprise the vehicle operator and can result in a crash without warning."

NHTSA says that owners of the aforementioned vehicles can drive their vehicles. "However, to minimize the possibility of an engine surge, do not operate the air-conditioning in your vehicle until the recall work has been performed," it said.

Volkswagen dealers will inspect and update the software for free. Owners may contact Volkswagen at (800) 893-5298 or the NHTSA vehicle safety hotline at (888) 327-4236.

What this means to you: If you own any of the aforementioned Volkswagens, get the vehicle into your dealer ASAP. NHTSA says the fix should only take an hour.

—Article by Anita Lienert, Correspondent, Edmunds.com

Volkswagen Recalls
Volkwagen TSB's

Your Bentley and Ferrari Have Been Recalled

2008-06-05T13:58:00.000-07:00

From US News & World Reports
We do our best to report on automotive recalls that affect average Americans as soon as they are announced. But frankly, we're not quite sure what to do with today's batch of defect notices. Cars that cost six figures just don't get recalled often, and we're not quite sure our readers are impacted when they do. But just in case you're driving around in $200,000 or more worth of steel and leather, pay attention…

Autoblog reports, "Owners of 2004-2008 Continental GT, GT Speed, Flying Spur, and GTCs should pay the dealer a visit for a recall campaign. Road salt can potentially eat through the fuel filter housing, allowing fuel spray, and potentially leading to fire." Bentley says 13,000 cars are affected. We're not sure which is more surprising -- that Bentley has issued a recall, or that there are 13,000 Bentley Continentals on the road.

USRecallNews says "dealers will replace the fuel filter and reposition the retaining clip on all affected vehicles. The recall is expected to begin on or about May 30, 2008. Owners may contact Bentley at 1-800-777-6923."

The day's other unusual recall comes from Ferrari. Autoblog reports, that Ferrari has recalled all 612 Scaglettis that feature an automated manual F1 gearbox. The owner notification letter Ferrari has filed with the National Highway Traffic Safety Administration explains, "The defect involves the presence of a non-conforming clutch sensor in the F1 transmission," which "may malfunction under normal operating conditions due to the heat produced by the vehicle. Such sensor malfunction, in turn, may inhibit the proper function of the clutch assembly making the shifting of the gears very difficult," which" may render the vehicle inoperable."

Approximately 366 vehicles are affected, meaning that owning a malfunctioning Ferrari is much more exclusive than owning a defective Bentley, if you're the sort of sucker that buys one of these poorly made cars.

From US News & World Reports Website

All recalls for Bentleys

All Ferrari Recalls

Some Auto Warranty Offers May Be Fraudulent

2008-05-27T12:58:00.000-07:00

The bold text proclaims "final notice," "motor vehicle notification" or "priority level: high."

What's not explained is that those who respond to the extended auto warranty offers - either by mail or on the phone - may risk losing thousands of dollars.

Tennessee's Division of Consumer Affairs is warning that what seems like a legitimate pitch for a warranty from car dealers or automakers may in fact be an attempt to rip off the customer or obtain personal information such as credit card and bank account numbers.

The scam first gained publicity in Tennessee when several Nashville-area residents alerted the NewsChannel 5 television station.

In a segment that recently aired on the TV station, two people explained how they had lost money in the scam.

Mary Blackburn paid $2,000 for an extended warranty that was supposed to cover all repairs on her car. When her car broke down, the company didn't pay for anything.

"There's too many people like me without money who are putting money into this and getting nothing out of it," Blackburn said.

Tennessee's Division of Consumer affairs released its own warning within days of the broadcast.

"Some of our staff have gotten the mailings," said Shannon Ashford, a public information officer for the division.

According to Ashford, postcards seem to be the most common form the scam is taking in Tennessee. Many of these postcards feature a 1-800 number. When recipients call the number on the postcard, they are pressured to make a down payment for the warranty before they can find out more information.

In other areas of the country, consumers have reported getting repeated phone calls from auto warranty sales representatives who hang up if they are asked to put a supervisor on the phone. In the most extreme cases, consumers received calls several times a day, late at night or on their cell phones. Missouri's attorney general is reported to be suing more than half a dozen auto warranty companies, accusing them of deceiving customers.

For those who want to avoid the scam, Tennessee's Division of Consumer Affairs offers a few tips. Consumers should beware of any correspondence from out of state and check with their car dealers before purchasing an extended warranty. Senior citizens, who often are targeted for these scams, should be especially careful.

Article by Jessie Pounds, KnoxvilleBiz.com

Find out more about your vehicles warranty.

Ford recalls 650,000 F-150s, Lincoln Mark LTs

2008-05-19T09:35:00.000-07:00

The Lincoln Mark LT is being recalled for a brake hose issue. Ford Motor Co. is recalling more than 650,000 Ford F-150 and Lincoln Mark LT pickup trucks to fix a brake hose that could weaken brake power.

Ford is recalling the 2005-06 versions of the trucks with 5.4-liter three-valve V8s, according to a posting on Wednesday by the National Highway Traffic Safety Administration.

The brake hose may swell over time and detach from the intake manifold, according to the posting. Although the brake function wouldn’t be completely lost, braking would require increased brake pedal effort, the posting said.

Ford spokesman Wes Sherwood said 11 minor accidents caused by the issue were reported, a sufficient number for the automaker to act. No injuries were reported, he said.

More than 600,000 of the trucks are in the United States and about 50,000 are in Canada, Sherwood said. Ford said its dealers will replace the hose at no charge to customers, who will receive a letter notifying them about the recall in June.

Ford, Lincoln and other Auto Recall Notices

Article by Craig Trudell, Autoweek.com

Top Auto Recalls in 2007

2008-05-07T11:01:00.000-07:00

Here are the 10 largest vehicle recalls of 2007 in the United States

1. Ford Motor Company, 3.6 million vehicles (recall 07V336).

MODELS: 1993 Ford Bronco; 1992-98 Ford Crown Victoria; 1997-2003 Ford E-150, E-250, E-350, Econoline; 2003 Ford E-450; 1992-93 E-150, E250, E350, E450, Econoline; 1999-2001 Ford Explorer; 2001-2 Ford Explorer Sport and Sport Trac; 2003-4 Ford F-150 Lightning; 1993 Ford F150, F250, F350, F450; 1995-2002 F53; 1998-2002 Ford Ranger; 1993-95 Ford Taurus SHO; 1993-98 Lincoln Mark VIII; 1992-98 Lincoln Town Car; 1994 Mercury Capri; 1992-98 Mercury Grand Marquis; 1999-2001 Mercury Mountaineer.

REASON: The speed control deactivation switch can develop a short circuit, possibly resulting in an engine compartment fire, even if the vehicle is parked and the ignition is off. Owner notification began August 13, 2007.

HISTORY: 1,472 complaints; 65 crashes/fires.

2. Ford, 1.2 million, vehicles (recall 07V553).

MODELS: 1997-2003 Ford F-series Super Duty, E-series and Excursion with 7.3-liter diesel engines.

REASON: The camshaft position sensor may function intermittently, possibly resulting in the engine stalling, which could lead to a crash. Owner notification began January 2008.

HISTORY: 1,595 complaints; 14 crashes/fires; 1 injury.

3. Volkswagen, 790,000 (recall 07V063).

MODELS: 2001-5 Volkswagen Jetta sedans and wagons; 2001-7 Volkswagen New Beetle sedans and convertibles; 1999-2006 Volkswagen Golf and GTI sedans; 2004 Volkswagen R32. REASON: If installed incorrectly, a brake light switch may malfunction, resulting in the bra

ke lights becoming inoperative or remaining on. Failure to provide the proper signal when braking could lead to a crash. Owner notification began in April of 2007.

HISTORY: Volkswagen said it does not quantify the number of complaints received and the company is not aware of any crashes, injuries or fatalities.

4. Nissan, 653,910 (recall 07V527).

MODELS: 2002 and 2005-6 Nissan Altima and Sentra vehicles equipped with 2.5-liter engines.

REASON: An issue with the program in the engine computer may cause the engine to stop running without warning while the vehicle is being driven at low speeds, increasing the risk of a crash. Owner notification began December 11, 2007.

HISTORY: Nissan said it is unaware of complaints, crashes/fires, injuries, deaths.

5. Chrysler Corporation, 576,418 (recall 07V555).

MODELS: 2001-2 Dodge Dakota, Durango, Ram van; 2002 Dodge Ram pickup trucks with automatic transmissions.

REASON: The ignition-park shift interlock system may become inoperative, letting the shifter move out of the park position or the key to be removed without the shifter being in park” which could allow the vehicle to roll away, possibly causing a crash. Owner notification began in December 2007.

HISTORY: Chrysler said no data is available to the public.

6. Toyota, 533,124 (recall 07V013).

MODELS: 2004-6 Toyota Tundra; 2004-7 Toyota Sequoia.

REASON: The front suspension lower ball joints may experience excessive wear and loosen prematurely, which could, in the worst case, cause a loss of steering control. Owner notification began February 2, 200

HISTORY: The National Highway Traffic Safety Administration has reports of 120 complaints; 10 crashes/fires; 3 injuries. Toyota said there have been 14 confirmed cases of failure of the ball joint, 11 crashes reported and 6 injuries.

7. Ford, 446,460 (recall 07V156).

MODELS: 2001-4 Ford Escape sport utility vehicles equipped with antilock brakes.

REASON: The antilock braking module connector may develop an electrical short that could cause the warning light to illuminate, and in some cases, the module may overheat resulting in a burning odor, smoke, and/or fire. Owner notification began April 23, 2007.

HISTORY: 120 complaints; 120 crashes/fires.

8. Nissan North America, 372,250 (recall 07V435).

MODELS: 1997-2001 Nissan Pathfinder; 1997-2001 Infiniti QX4 vehicles

REASON: In 22 states and the District of Columbia where road salt is heavily used, the fuel filler tube assembly may rust in a certain spot and a hole may develop, causing fuel to leak during refueling and possibly resulting in a fire. Owner notification began on November 26, 2007.

HISTORY: Nissan said there were no complaints of crashes/fires, injuries or deaths.

9. Volkswagen, 340,000 (recall 07V442).

MODELS: 2005-8 Volkswagen Jetta; 2006-8 Volkswagen Rabbit, GTI, and R32

REASON: Noncompliance with Federal Motor Vehicle Safety Standard No. 108, Lamps, Reflective Devices, and Associated Equipment, can inhibit proper headlamp aim adjustment, reducing road visibility and increasing the risk of a crash. Owner notification began September 2007.

HISTORY: Volkswagen said there were no complaints, crashes, fires, injuries or deaths.

10. Chrysler Corporation, 328,424 (recall 07V092).

MODELS: 2004-6 Dodge Durango.

REASON: An integrated circuit in the instrument cluster that controls the interior lighting may overheat and result in an instrument panel fire. Owner notification began in April 2007.

HISTORY: 213 complaints; 78 crashes/fires.

Article by Cheryl Jensen - NewYorkTimes.com

Find auto recalls by manufacturer.

Used-Car Dealers Find Towns Unwilling To License Online Sale

2008-04-28T06:22:00.000-07:00

Matt Grenier wants to expand his business worldwide. Like most car dealers, he wants to make a good living. Unlike most, he plans to do so without attracting road-clogging traffic to his hometown of Shrewsbury, polluting the environment, or erecting unsightly road signs. Grenier, 23, wants to be an online used-car salesman.

The problem is the Internet. The technology that would allow Grenier's business to operate almost unnoticed in Shrewsbury is the very reason why its Board of Selectmen recently denied his application for an auto dealer's license.

"I just don't see the benefit to the town, both to the public and the potential administrative costs," said Selectman John Lebeaux during the board's April 14 hearing on Grenier's license application.

Grenier said he intends to fight the board's decision. From his perspective, selectmen are preventing him from making a living. "It's commerce," he said. "When there were horses, you had to work close to your house. Now you can work all over the place. Now that there's the Internet, you can sell cars all over the world."

Others who want to market their wares on the Web are running into similar roadblocks. Throughout Boston's western suburbs, a number of selectmen and other local officials are deciding to withhold so-called "no display" used-auto dealer licenses, the kind that allow residents to sell vehicles without a sales lot. One argument against granting the licenses is that officials can't investigate complaints about such online salesmen, who often have no inventory and sometimes work from their homes.

"The laws have not caught up with the technology, and they need to," said Westborough Town Coordinator Henry Danis.

Westborough had two requests for the no-display licenses last year. Both were rejected. The most recent was from local resident Howard Garshman, whose application was denied after an October hearing at which he and the board heatedly debated his request. In January, selectmen instituted a moratorium on issuing such licenses.

"We can't monitor what he's doing," Danis said, referring to Garshman. "We have not only the right, but the obligation to do that."

Milford officials have also adopted a policy of rejecting applications from online car dealers, who they say regularly seek town licenses. "The Board of Selectmen does prefer you have a location," said Town Administrator Louis Celozzi. "If they are granting the license, they want to be able to regulate. If someone is involved on the Internet, obviously our regulations are pretty much useless."

Massachusetts gives municipalities sole authority over issuing used-car dealer licenses, according to Bill Boutwell, executive director of the Massachusetts Independent Auto Dealers Association; most of its 500 members sell used cars. Would-be Internet merchants need local approval to sell cars lawfully, he said, and the explosion in popularity of marketing websites like eBay and Craigslist is bringing the issue into higher profile.

Boutwell said he believe towns are acting in the interest of consumers when they reject applications for Internet sales licenses.

Court: Customers Must Cooperate To Sue Under Wisconsin Lemon Law

2008-04-14T05:58:00.000-07:00

Madison, WI - AP - Customers who buy faulty cars cannot win damages under Wisconsin's Lemon Law if they fail to cooperate with manufacturers, an appeals court ruled Wednesday.

The law requires manufacturers to give refunds or replacement vehicles to customers who buy lemons within 30 days of receiving the request. Customers can sue for harsh penalties — including double damages — if manufacturers do not comply.

Courts have generally ruled against manufacturers who sought to delay a refund or replacement within that window as long as customers provided the necessary information.

But the District 2 Court of Appeals, for the first time, defined a customer's "good faith obligations" under the law in its ruling on Wednesday. Customers must work with manufacturers toward a solution within the 30-day timeframe or they cannot later sue for damages under the law, the court said.

"The Legislature could not have intended that the consumer be allowed to block a manufacturer from complying with the statute and then reap the rewards of noncompliance," Judge Richard S. Brown wrote for a three-judge panel.

The court ruled in the case of Marco Marquez, a customer who bought a Mercedes in Milwaukee that turned out to be a dud. He sought a refund in 2005 and then sued Mercedes Benz for damages after he did not receive one within 30 days.

The company claimed Marquez ignored its requests to turn over information about his auto loan. Mercedes argued it needed to know how much he owed on the loan to give him a proper refund.

Marquez claimed he did not remember those requests and Mercedes Benz did not need the loan information. A Waukesha County judge ruled in his favor in a summary judgment, ordering Mercedes to pay him $202,000.

The appeals court overturned that decision and ordered a trial to determine whether Marquez acted in good faith. Consumers who intentionally prevent manufacturers from complying with the 30-day requirement are not entitled to damages, it said.

Marquez's lawyer, Vincent Megna, said he was confident his client would prevail at trial and be awarded the $202,000 plus interest.

"There's no way that Marco did anything intentionally to prevent them from giving him a refund," he said. "They just waited too long to contact him. They waited until the 30th day."

By Ryan J. Foley, Associated Press

MLive.com article

Lemon in Wisconsin?

Ford Recalls 2008 Super Duty Trucks

2008-04-07T07:19:00.000-07:00

Ford Motor Co. has ordered dealers to stop selling the new Super Duty pickup with the 6.4-liter diesel engine and is recalling more than 37,000 of the 2008 F-Series trucks after reported tailpipe fires in the diesel version of the pickups.

Ford has received three reports of flames shooting out of tailpipes after either fuel or oil leaked into an area of the exhaust system where diesel particulates are burned off to meet emissions requirements, according to a Ford spokesman.

In Texas, one Super Duty diesel's hot tailpipe set grass fire when the driver pulled off the road, according to Ford. The fire was quickly put out and no one was hurt.

"This is an important product for us and an important customer base, and we want to move swiftly to make sure this does not become a safety issue for our customers," Ford spokesman Dan Jarvis said.

The heavy-duty work truck is an important aspect of financial recovery at Ford as the automaker tries to pull itself out of $12.7 billion in red ink from last year. Ford dealers have an inventory on hand of roughly 29,000 Super Duty trucks with the 6.4-liter diesel engine. Sales of the hot selling truck will not resume until the engine control software can be updated.

The software upgrade resets the Super Dutypowertrain control module on the Ford trucks to recognize improper levels of heat in the exhaust system. If heat is detected the system will power down the truck so the driver can pull to the side of the road and allow the truck to cool off.

Ford estimates the software can be modified during ten minute procedure. Super Duty trucks that have not been shipped from their assembly plant in Louisville, Kentucky will receive the engine control software update at the plant.

Customers with the first 8,400 diesel Super Duty trucks already on the roads will be notified that they should bring their vehicles into dealerships for the software update.

Ford will send out a recall notice to customers in April and dealers will contact consumers as soon as possible to warn them of the potential problem.

Gasoline-powered versions of the Super Duty and previous model-year diesel trucks with 6.0-liter or 7.3-liter engines are not affected by the recall.

Almost 70 percent of the Super Duty trucks sold are equipped with diesel engines.

Joe Benton

ConsumerAffairs.com

GM Recalls 2008 Cadillac STS and STS-V

2008-03-27T12:42:00.000-07:00

WASHINGTON, D.C. — General Motors is recalling 4,586 2008 Cadillac STS and STS-V sedans for a problem with the tire-pressure monitoring system. The National Highway Traffic Safety Administration says "indications of a system malfunction do not work," which may result in "premature tire failure [that] could result in a loss of control of the vehicle."

"When the system detects a malfunction, the low-tire warning light should flash for about one minute and then stay on the remainder of the ignition cycle," says NHTSA in its recall summary of the problem. "A driver information center message will also be displayed on the instrument panel."

NHTSA says Cadillac dealers will reprogram the remote control door-lock receiver module for free. Owners may contact Cadillac at (800) 982-2339.

What this means to you: If you own one of the aforementioned Cadillacs, have it checked out with your dealer ASAP.

Anita Lienert, CorrespondentEdmunds.com - Inside Line

Cadillac Recalls