Autoblog

Toyota unintended acceleration lawsuit settled for $16M

Jonathon Ramsey — Mon, 08 Apr 2013 16:31:00 EST

Filed under: Government/Legal, Toyota, Earnings/Financials

Slowly, the many loose threads still dangling after the unintended acceleration issue Toyota faced a few years ago are being resolved. The Orange County District Attorney's office was believed to be the first DA's office to take Toyota to court, its suit alleging that Toyota knew its cars had defects and continued to sell them. The suit sought to "permanently enjoin Toyota from continued unlawful, unfair, deceptive, and fraudulent business practices as it pertains to both consumers and competitors" and asked for $2,500 "for every violation of the Unfair Business Practices Act," plus costs.

That suit has now been settled, Toyota - without admitting fault or wrongdoing - agreeing to pay $16 million to the county. Half of the money will go to the Orange County Gang Reduction Intervention Partnership, another four million dollars to the OC DA's office to investigate economic crime, the remaining four million being used to pay for the case.

Toyota unintended acceleration lawsuit settled for $16M originally appeared on Autoblog on Mon, 08 Apr 2013 16:31:00 EST. Please see our terms for use of feeds.

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Why using Google Maps for driving directions is illegal in California

Jonathon Ramsey — Mon, 08 Apr 2013 10:30:00 EST

Filed under: Government/Legal, Safety

Back in January of 2012, Steven Spriggs was cited for using a cellphone while driving in California, violating the state's Vehicle Code Section 23123 that makes it illegal for someone to drive "while using a wireless telephone unless that telephone is specifically designed and configured to allow hands-free listening and talking, and is used in that manner while driving." In this case, though, while Spriggs did have the phone in his hands, he was using it to check directions on Google Maps, not make a phone a call or send a text.

Spriggs appealed the citation, but according to Digital Trends, Judge Kent Hamlin of the Fresno County Superior Court has ruled against him. Hamlin's eight-page decision asserted that the law prohibiting drivers from using their hands to operate their cellphones to make calls and send texts didn't mean they could manually operate their phones for some other purpose, like getting directions; Hamlin reasoned that the law's intent was to prevent all manual operation of the cellphone to curb distracted driving.

Hamlin felt this even though Sprigg argued that when the original law specified voice calls, it was felt necessary to append the law to add texting to its purview. Using that example, if the law didn't specify the other operations it covered, then it shouldn't apply to those other operations. Hamlin's decision countered that there was no legislative history that demonstrated the bill's original supporters didn't want texting covered by the law originally, and that since the purpose of the "plain language" of the law is to eliminate the distraction of manually using one's phone while driving, that any such use is automatically covered.

Why using Google Maps for driving directions is illegal in California originally appeared on Autoblog on Mon, 08 Apr 2013 10:30:00 EST. Please see our terms for use of feeds.

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Ohio judge calls speed cameras a "scam," earns spot on our Christmas card list

Zach Bowman — Sat, 16 Mar 2013 09:01:00 EST

Filed under: Government/Legal, Technology

There's only one thing better than fighting the man, and that's watching the man fight himself. A Hamilton County, Ohio judge has ruled against an ordinance that allowed the village of Elmwood Place to install speed cameras. The town of just 2,000 people has already seen the cameras generate some $1.5 million in fines since they were installed last July, and USA Today reports Judge Robert Ruehlman believes "Elwood place is engaged in nothing more than a high-tech game of Three-card Monty," adding, "It is a scam the motorist cannot win."

Preach it, preacher man.

Ohio has 13 other jurisdictions that use speed cameras, and a total of 13 states and Washington, D.C. use them to enforce traffic laws. Elmwood Place began handing out $105 citations shortly after the cameras were installed, and local residents reacted accordingly, with many simply avoiding the village all together. Local businesses say revenues are down and lawyer Mike Allen has stepped in to represent drivers suing the village. "It is obvious that the village of Elmwood is motivated by financial considerations and not public safety," he said.

Allen's victory marks what could be the country's first specific constitutional challenge to speed cameras. That is, whether or not a driver's due-process rights are violated by getting a ticket in the mail.

Ohio judge calls speed cameras a "scam," earns spot on our Christmas card list originally appeared on Autoblog on Sat, 16 Mar 2013 09:01:00 EST. Please see our terms for use of feeds.

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Georgia man sues state for right to have gay-themed vanity license plates

Jonathon Ramsey — Sun, 27 Jan 2013 16:45:00 EST

Filed under: Government/Legal

James Cyrus Gilbert III applied to Georgia Department of Driver Services for three vanity plates for his car: 4GAYLIB, GAYPWR and GAYGUY. All three were rejected, so now Gilbert is suing the department on the grounds that his free speech is being unfairly denied. The denial itself isn't the sole issue, what is also being challenged is the arbitrariness of how the state decides what plates will be approved or not.

Georgia law forbids "profanity, language the community considers obscene or language that ridicules a person, group, or religious belief or being, race or ethnicity" on vanity plates. The question Gilbert's attorneys want answered is why HATERS, BLKBUTI and JESUS4U were cleared, but Gilbert's choices are on a list of more than 10,000 banned plates.

Even the state has admitted that its application of the law is inconsistent and that "viewpoint neutrality... is impossible," and outside legal observers have said that it looks like it will be hard for the state to win the case. Gilbert's lawyers want his plate choices approved and the law defining what is acceptable to be declared unconstitutional.

Scroll down below to watch a video from NBC News on the story.

Continue reading Georgia man sues state for right to have gay-themed vanity license plates

Georgia man sues state for right to have gay-themed vanity license plates originally appeared on Autoblog on Sun, 27 Jan 2013 16:45:00 EST. Please see our terms for use of feeds.

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GM may face $918-million loss due to suit stemming from bankruptcy

Zach Bowman — Fri, 04 Jan 2013 14:14:00 EST

Filed under: Government/Legal, GM, Earnings/Financials

General Motors may see a loss of $918 million should a bankruptcy judge rule certain hedge funds were favored over other investors during the automaker's 2009 restructuring. A trust representing a number of unsecured creditors has sued to undo a lock-up agreement that saw hedge funds receive around $367 million while other creditors were left to recover a slim fraction of their original investments. The creditors claim the agreement was unfair and that it took place after after the bankruptcy filing. That means the deal would have been subject to scrutiny by bankruptcy courts.

But both GM and the hedge funds maintain the lock-up agreement was sealed before the bankruptcy took place, meaning it isn't subject to judge approval. Judge Robert Gerber held several days of trial between August and October and a ruling is expected early this month. Should Gerber rule in favor of the trust, GM will have to pay up on a loan of almost $1 billion owed by GM Canada to a Nova Scotia lender.

GM may face $918-million loss due to suit stemming from bankruptcy originally appeared on Autoblog on Fri, 04 Jan 2013 14:14:00 EST. Please see our terms for use of feeds.

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Coral Gables, FL votes to scrap 50-year-old pickup ban

Zach Bowman — Sat, 10 Nov 2012 16:02:00 EST

Filed under: Truck, Government/Legal, Work

For 50 years, residents of Coral Gables, Florida weren't permitted to park pickup trucks in their driveways due to a local ordinance aimed at preserving the community's classy aesthetic. As you may recall, police began enforcing the rule last year by handing out citations with a $100 fine to anyone caught parking trucks on their property overnight. The fines could climb as high as $500. Former resident Lowell Kuvin waged an eight-year legal battle with the city to get the law repealed, but the Florida Supreme Court ruled in 2011 that the municipality had the authority to control its aesthetics.

But the citizens of Coral Cables put the ordinance on this year's ballot and voted to repeal the law. While residents seemed divided on the issue, most agreed the ban now served more as a class issue than anything else. Large SUVs, for instance, were entirely acceptable under the old ban.

Coral Gables, FL votes to scrap 50-year-old pickup ban originally appeared on Autoblog on Sat, 10 Nov 2012 16:02:00 EST. Please see our terms for use of feeds.

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Ford drops suit against counterfeiters and trademark infringers

Zach Bowman — Wed, 01 Aug 2012 08:44:00 EST

Filed under: Aftermarket, Government/Legal, Ford

Ford has dropped a lawsuit against 13 individuals accused of selling counterfeit products with the automaker's trademarks, according to The Detroit News. The company originally wanted to acquire names, addresses, telephone numbers, bank account numbers and emails from sites like eBay and PayPal without informing the accused, but a federal magistrate judge in Detroit initially denied the request, ordering the sites instead to notify its users.

Ford appealed, saying notification would allow defendants time to destroy evidence and possibly flee before Ford and its lawyers could obtain their identities. The judge eventually relented, allowing Ford access to names and addresses but blocking other personal information. Ford withdrew the suit last week anyway.

The Detroit News reports a 2007 U.S. Chamber of Commerce study indicated that Ford loses around $1 billion per year to counterfeit auto parts. The report spurred the manufacturer to pursue offenders more vigorously. Counterfeit parts drag in $12 billion per year world wide, with $3 billion of that figure coming from the U.S. alone.

Ford drops suit against counterfeiters and trademark infringers originally appeared on Autoblog on Wed, 01 Aug 2012 08:44:00 EST. Please see our terms for use of feeds.

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BMW 'astonished' after losing intellectual property case

Jonathon Ramsey — Mon, 30 Jul 2012 08:01:00 EST

Filed under: Government/Legal, BMW, Design/Style

BMW has been tussling in courtrooms with a South African auto parts supplier called Grandmark for 13 years. The real issue revolves, of course, around money, but the legal issue revolves around intellectual property rights regarding the design of car parts. South Africa allows entities to register an "Aesthetic Design" (AD) that "is new and original, and that has features which 'appeal to and are judged solely by the eye';" BMW has received Aesthetic Design registrations for both its vehicles and the parts, and so argues that Grandmark's manufacture of identical replacement parts infringes on its intellectual property re: the AD registration.

BMW won a court order 12 years ago against Grandmark over replacement hood, headlight, grille and front fender designs, but Grandmark appealed, arguing that the AD registration for such components is ultimately invalid - that BMW can't claim a particular AD intellectual property for product shapes like headlights and fenders because parts they "are not judged visually but are dictated by function," as opposed to the overall shape of the car (which BMW also registers). A bit of clarity: South Africa also allows for the registration of Functional Design, but car parts are specifically excluded - that's why BMW registers parts under the AD provisions. The larger picture to all of this is that if Grandmark won, it would officially open the door to generic replacement car parts in this market.

After having been at this since the last millennium, the Gauteng North High Court has finally ruled in favor of Grandmark. The judge opined that car parts must be considered separately from the entire car, and says BMW needed to explain the "novel and aesthetic features" of the individual parts to uphold its claim to IP rights, which the judge felt BMW didn't do. It was the judge's opinion that the parts in question have "no features that will or may influence the choice or selection or have some individual characteristics which are calculated to attract the attention of the beholder."

BMW was naturally dismayed by the ruling, and has said it will study it closely before deciding what to do next.

BMW 'astonished' after losing intellectual property case originally appeared on Autoblog on Mon, 30 Jul 2012 08:01:00 EST. Please see our terms for use of feeds.

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Mini sued over CVT failures. Again.

Jonathon Ramsey — Fri, 13 Jul 2012 18:29:00 EST

Filed under: Convertible, Government/Legal, Hatchback, Mini

A group of Florida plaintiffs have come together to file a class action lawsuit against Mini. Their issue is with the reliability of the Continuously Variable Transmissions in first-generation Cooper hatchbacks from 2002-2006 and in Cooper Convertible models from 2006-2008. A cursory web search on the matter returns plenty of results from Mini owners complaining of the same issue, sudden failure of the CVT, and having mixed fortunes at Mini dealers when trying to get the situation resolved.

The Florida suit comes a year after a class action suit was filed against Mini in California for the same reason. As with the Florida case, the California legal action Brad Aarons v. BMW of North America, LLC sees "restitution, damages and other relief" for plaintiffs who were "required to spend approximately $6,000 to $9,000 (one-third to one-half of the original purchase price) to repair or replace their CVTs, or sell their vehicle without repair for a substantial loss...." Parent company BMW has not yet commented on the matter.

Mini sued over CVT failures. Again. originally appeared on Autoblog on Fri, 13 Jul 2012 18:29:00 EST. Please see our terms for use of feeds.

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Japanese CEO busted for posting speeding Lambo vid on YouTube [w/video]

Zach Bowman — Tue, 10 Jul 2012 20:00:00 EST

Filed under: Coupe, Performance, Government/Legal, Japan, Safety, Videos, Lamborghini

Technology is making it harder and harder to get away with being an idiot. Just ask one Japanese executive. Mikami Tadao, the 38-year-old president of a manufacturing company based in Hiroshima who recently found himself behind bars for grossly exceeding the speed limit in his Lamborghini Gallardo two years ago. Tadao reportedly took his exotic through a local tunnel at around 97 miles per hour, which is around 60 mph over the posted speed limit. Odds are he would have gotten away with the stunt were it not for the fact that he recorded the antics for posterity and uploaded the clip to YouTube.

Hiroshima police arrested Tadao for the offense, and he now faces a slew of traffic violations. Officers have also seized his personal computer along with the videos he's taken. Tadao reportedly wrote in the video description that he wanted to enjoy the sense of speed and the sound of the Gallardo in the tunnel. Something tells us he'll grow to hate that cacophony when prosecutors play the clip in court. Check out the video for yourself below.

Continue reading Japanese CEO busted for posting speeding Lambo vid on YouTube [w/video]

Japanese CEO busted for posting speeding Lambo vid on YouTube [w/video] originally appeared on Autoblog on Tue, 10 Jul 2012 20:00:00 EST. Please see our terms for use of feeds.

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Police confiscating motorists' phones in Cape Town [w/poll]

Jonathon Ramsey — Mon, 09 Jul 2012 13:31:00 EST

Filed under: Etc., Government/Legal, Safety

The phrase "law enforcement" - and the very idea of laws themselves - is entirely dependent on that second word, "enforcement." Without it, you don't have laws, you have a modern art installation consisting of reams of paper decorated with lines that are as useless as they are squiggly. But how enforcement is handled is just as important as the concept itself, and when it comes to laws against cell phone usage while driving, Cape Town, South Africa has gone further than any other country we've heard of.

Instead of just issuing a fine, when drivers are caught talking on their phones the authorities have begun confiscating phones for 24 hours - unless a driver is busted on Friday, in which case, the confiscation lasts until the following Monday. Using your actual cell phone handset and not a hands-free kit while driving is against the law in South Africa. It's been that way for a while, but it was found that a 500-rand ($60 U.S.) fine wasn't curbing the distracted driving habit. The next step? Take the phone away and see if that changes motorists' behavior.

In this case, Cape Town police lock the offender's phone inside a case, on the spot, and the case is later placed inside a walk-in vault at one of the traffic departments. Drivers are allowed to remove SIM and memory cards before the phone is handed over, and frankly, phones are so inexpensive in South Africa that we could - sadly - see this leading to some folks buying a new phone instead of retrieving their handset from the police. Nevertheless, SA is determined to see it through in the hopes that drivers will obey the law instead of their own communication compulsions.

What do you think, is this an appropriate step by Cape Town's police, or is it taking things too far? Have your say by voting in our poll below and feel free to leave your thoughts in Comments.

View Poll

Police confiscating motorists' phones in Cape Town [w/poll] originally appeared on Autoblog on Mon, 09 Jul 2012 13:31:00 EST. Please see our terms for use of feeds.

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Great Britain set to introduce laws making "drug driving" a criminal offense

Jonathon Ramsey — Wed, 16 May 2012 08:00:00 EST

Filed under: Government/Legal, UK

It's taken three years but the Great Britain is finally ready to introduce laws to make driving while impaired by illegal and legal drugs against the law. While Britain's Home Office waitied for approval of a mobile drug-testing unit - currently drug testing is done at the police station - ministers have been working on the details of the law to fall under the Crime, Communications and Court Bill.

The drugalyzers are expected to be ready by the end of the year and will be able to detect up to 13 drugs from cocaine and crack to certain prescription medications in a driver's saliva. An advisory panel is devising penalties for operators found to be impaired and considering the idea of differing penalties for different drugs various, but a one-year ban, jail time and a four-figure fine are looking like front runners.

The run-of-show would be that if a policeman pulls you over and suspects impairment, he'll test for alcohol first. If, in the policeman's eyes, that doesn't explain your horrid driving, he'll test for drugs. If you fail the drug test you'll be taken to the station and tested again on their fixed machine, to verify the findings. And if you decline to be tested at all, it'll be considered the same as declining a breathalyzer.

Great Britain set to introduce laws making "drug driving" a criminal offense originally appeared on Autoblog on Wed, 16 May 2012 08:00:00 EST. Please see our terms for use of feeds.

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Ford victorious in requesting legal reversal of $43M fatal crash judgment

Jeff Glucker — Fri, 23 Sep 2011 13:32:00 EST

Filed under: Government/Legal, Ford

In 2003, a Lincoln Town Car driven by John and Dora Jablonski burst into flames when it was hit from behind, the fire taking the life of John and severely burned Dora. The accident turned into a court case, which resulted in a $43 million judgment against Ford Motor Company. Now, however, that judgment has just been reversed.

Ford asserted that the design of the 1993 Town Car in question had nothing to do with the accident, and, in fact, met or exceeded all industry standards set at the time. The automaker points out that this was an unfortunate accident in which a distracted driver slammed into the Town Car at 60 miles per hour, and that the company should not be liable. After this new theory was argued, a jury agreed, and the initial judgment was reversed in favor of Ford.

Ford victorious in requesting legal reversal of $43M fatal crash judgment originally appeared on Autoblog on Fri, 23 Sep 2011 13:32:00 EST. Please see our terms for use of feeds.

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Judge's ruling paves way for owners to sue Toyota over economic losses *UPDATE

Jeff Glucker — Wed, 18 May 2011 15:02:00 EST

Filed under: Government/Legal, Toyota

If Toyota was hoping to end its ongoing unintended acceleration-related legal issues, the latest bit of courtroom news will make the automaker quite unhappy. U.S. District Judge James Selna has ruled that vehicle owners can sue Toyota over economic losses. Some Toyota owners claim the automaker is responsible for diminished resale value of vehicles wearing the Toyota badge.

"A vehicle with a defect is worth less than one without a defect," said Selna.

Toyota, however, has stated that it remains confident it will emerge from the courtroom victorious. Selna's ruling moves the burden of proof over to the plaintiff's lawyers, and Toyota believes that no such proof of wrong-doing on its part exists. Lawyers for the plaintiffs will be tasked with proving that the automaker was aware of a defect and chose to ignore it.

One particular issue from Toyota's point of view, with regards to James Selna's ruling, is the judge has applied a California law to the case. One that may make it easier for plaintiffs to recover damages. Toyota argues that vehicle owners from all over the country are involved in the lawsuit, and therefore local state laws should be applied with respect to the owner's location. Either way, it appears that Toyota's legal drama is going to continue for quite some time.

*UPDATE: Toyota reached out to Autoblog.com for clarification. It appears the ruling has not yet come down, but that Selna is merely considering the application of California law to a case that reaches across the entire country.

Judge's ruling paves way for owners to sue Toyota over economic losses *UPDATE originally appeared on Autoblog on Wed, 18 May 2011 15:02:00 EST. Please see our terms for use of feeds.

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Max Mosley's privacy case rejected by European Court of Human Rights

Noah Joseph — Wed, 11 May 2011 16:01:00 EST

Filed under: Europe, Government/Legal, UK

It appears as if Max Mosley has gotten whipped once again. But this time, it wasn't in an alleged S&M dungeon with a gaggle of hookers dressed up as Nazi officers, it was in no less distinguished a forum than the European Court of Human Rights.

The former FIA president, as you may recall, was outed by the British tabloid News of the World back in 2008 for his sordid sex life. Rather than recoil as most might - particularly in light of longstanding accusations of Mosley and his family's fascist sympathies and historical ties to high-ranking Nazi officials - Mosley went on the offensive. He made his case into a privacy issue and sued the newspaper, sued its publisher, and he sued a German newspaper that ran the story as well.

Once the dust settled from those lawsuits - including the nearly $100,000 (plus legal expenses) in punitive damages awarded him in court - Mosley took his case to the European Court of Human Rights. In a landmark decision being hailed by some as a victory for free speech, Mosley's case was dismissed by the courts yesterday.

The decision ostensibly upholds the rights of the British fourth estate (that is, the media) to publish the news as it sees fit without the requirement which Mosley was seeking to notify the subject of reports before they're published. Mosley may, however, appeal the decision, though to what higher judicial body remains unclear.

Max Mosley's privacy case rejected by European Court of Human Rights originally appeared on Autoblog on Wed, 11 May 2011 16:01:00 EST. Please see our terms for use of feeds.

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Followup: Ex-Ford engineer sentenced for industrial espionage

Zach Bowman — Wed, 13 Apr 2011 18:01:00 EST

Filed under: Etc., Government/Legal, Ford

Xiang Dong Yu, the former Ford engineer who was convicted of stealing trade secrets, has officially been sentenced to six years in prison. According to Reuters, the Beijing native was also ordered to pay a fine of $12,500 and will be deported after he serves his prison term. The 49-year-old Yu was arrested in 2009 on charges that he stole documents worth millions of dollars from his former employer during the 10 years that he worked for Ford.

Yu took a job with a U.S.-based company working in China in December of 2006 and copied some 4,000 Ford documents onto a personal hard drive before leaving or notifying the automaker of his new employer. The documents reportedly covered everything from engine and transmission details to electric power supply systems - all bits of information that would be incredibly tasty to China's growing automotive industry. Yu eventually took a position with Beijing Automotive Corporation.

[Source: Reuters]

Followup: Ex-Ford engineer sentenced for industrial espionage originally appeared on Autoblog on Wed, 13 Apr 2011 18:01:00 EST. Please see our terms for use of feeds.

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Report: 64 axed Chrysler franchisees file suit against U.S. Treasury

Jeff Glucker — Fri, 18 Feb 2011 09:57:00 EST

Filed under: Government/Legal, Chrysler

Back in June of 2009, Chrysler terminated relationships with 789 dealerships in an effort to cut its dealer network down by 25 percent. A few of those dealerships didn't think too highly of the move, which was orchestrated in part by the federal government. As a result, 64 former Chrysler franchisees have reportedly filed a suit against the United States Treasury and are seeking at least $130 million in damages.

Was the move to terminate these dealerships a violation of the U.S. Constitution? According to the lawsuit, the automotive task force violated the Fifth Amendment, which essentially states that property cannot be taken away and used for public purposes without adequate compensation.

[Source: Automotive News - sub. req. | Image: Drew Phillips/AOL]

Report: 64 axed Chrysler franchisees file suit against U.S. Treasury originally appeared on Autoblog on Fri, 18 Feb 2011 09:57:00 EST. Please see our terms for use of feeds.

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Jenson Button sues Brawn-Mercedes for championship-winning car

Noah Joseph — Thu, 24 Jun 2010 16:00:00 EST

Filed under: Motorsports, Government/Legal, Mercedes-Benz

To the victor go the spoils. It's an age-old adage, and with good reason. But after winning the world championship last year, Jenson Button had another battle on his hands.

In negotiating his contract with Brawn GP for last season, Button reportedly agreed to a salary cut given the team's drastically reduced budget compared to the well-funded Honda years. A clause, however improbable it may have seemed at the time, was included in the contract that stipulated that, should Button win the championship, he'd be entitled to keep one of the cars with which he won it.

After the season was done, Button moved to McLaren and Mercedes bought the Brawn team, the chassis wasn't delivered. Offering instead to build Button a replica, the team reportedly claimed there weren't enough chassis to go around, so Button's company took the team to court.

The parties have reportedly since settled out of court and Button is due to take possession of his championship-winning car. But if you thought he had an easy ride to the title, claiming the prize apparently proved anything but.

[Source: ESPN]

Jenson Button sues Brawn-Mercedes for championship-winning car originally appeared on Autoblog on Thu, 24 Jun 2010 16:00:00 EST. Please see our terms for use of feeds.

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Report: Hyundai getting sued by former CA dealer for $30M

Eric Loveday — Fri, 26 Mar 2010 18:02:00 EST

Filed under: Government/Legal, Marketing/Advertising, Hyundai

A California-based Hyundai dealership has filed a lawsuit against Hyundai Motor America claiming that the automaker did not provide help to the struggling dealership despite contractual agreements and assurances that Hyundai would do everything necessary to help out the dealership during the economic downturn.

Estes Automotive Group, owner of Merced Hyundai in California, claims that the company treated them unfairly and did not act in good faith. The suit, filed in early March by Estes, seeks $30 million in losses that the dealership endured under promises from Hyundai that the company would help them weather the economic storm.

Estes claims that Hyundai strung the dealership out for more than a year promising to provided assistance as long as the dealership continued to operate. The dealership was instructed to go about its business as usual and Hyundai would take care of the financial situation. With these words, Estes continued to operate the facility at a loss counting on support from Hyundai which never came.

Hyundai Motor America has not commented on the matter, but has until the beginning of April to respond to the lawsuit. The suit is demanding a jury trial against Hyundai on the grounds of the company "engaging in a calculated scheme to bleed assets and operating capital, and ultimately destroying the business." Merced Hyundai closed its doors for good in January.

[Source: Automotive News - Sub. Req.]

Report: Hyundai getting sued by former CA dealer for $30M originally appeared on Autoblog on Fri, 26 Mar 2010 18:02:00 EST. Please see our terms for use of feeds.

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REPORT: Chinese automaker SAIC accused of hybrid tech theft by SsangYong

Jonathon Ramsey — Thu, 12 Nov 2009 18:32:00 EST

Filed under: China, Government/Legal, South Korea

In the beginning of the decade, before SsangYong got into really deep doo-doo, the Korean automaker began work on a hybrid control unit (HCU) with German engineering firm FEV. From 2004 to 2008, as the research continued, the South Korean government provided nearly half of the financial resources for the development of the technology. In 2005, as Ssangyong's stumbles began, Chinese automaker SAIC took a majority stake in the Korean company.

A year later, in 2006, SAIC saw the success SsangYong was having with the HCU and allegedly pressured SsangYong engineers to hand over the technology. And that, according to Korean state prosecutors, violated laws regarding the transfer of "homegrown technologies... without state permission." Since the Korean government paid for almost half of the tech, SAIC's rights to the HCU needed to be approved by the Korean government.

Seven indictments have been brought against SsangYong engineers, none of whom were financially compensated for revealing the HCU plans to SAIC. It appears to be a simple case of bullying. No action is planned against SAIC. Hat tip to Regular Man!

[Source: Korea Times | Image: Jung Yeon-Je/AFP/Getty]

REPORT: Chinese automaker SAIC accused of hybrid tech theft by SsangYong originally appeared on Autoblog on Thu, 12 Nov 2009 18:32:00 EST. Please see our terms for use of feeds.

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