Automotive Industry

News & Analysis as of

Volkswagen Defeated?

Last week, on September 18, 2015, the EPA issued a News Release revealing that Volkswagen Group of America (“Volkswagen”) sold cars incorporating a “defeat device” as defined in the Clean Air Act (“CAA”) to purposefully evade...more

CFPB Takes Action against Indirect Auto Lender over its Debt Collection Practices

On October 1, the CFPB ordered an indirect auto lender and its auto title lending subsidiary to pay more than $48 million in restitution and consumer relief over allegations that both companies engaged in unlawful debt...more

The Psychology of Cheating and FCPA Compliance

In the movie Margin Call, Jeremy Irons intones that there are three ways to win in business: (1) be the smartest; (2) be the fastest; and (3) cheat. I am currently out at the SCCE 2015 Compliance and Ethics Institute and as...more

CFPB Continues to Target Add-On Credit Products

The Consumer Financial Protection Bureau (CFPB) has stepped up its enforcement actions alleging deceptive and unfair practices in marketing and billing for add-on credit protection products. Add-on products have been one of...more

When is a Vehicle Not a “Vehicle”?

Two police officers were riding in a police car that was struck by an intoxicated underinsured driver. The officer in the passenger seat suffered serious injuries that were inadequately compensated by the tortfeasor’s...more

Connecticut Supreme Court Delivers $35 Million Body Blow to Body Shops

Auto insurers control the cost of collision repairs through the use of direct repair programs. The programs feature networks of auto body repair shops that enter into contracts agreeing to discount labor rates and other...more

Not So Fast My Friend – UAW Membership Rejects Tentative Agreement

During their press conference on September 15, 2015, UAW President Dennis Williams and Fiat Chrysler CEO Sergio Marchionne appeared satisfied with the tentative agreement reached after months of bargaining. The two friends...more

Kentucky Supreme Court Sets Forth Helpful Principles On Liability For Punitive Damages

Cases in which an appellate court holds that a state’s standard for punitive liability was not satisfied even though there was sufficient evidence to support liability for the underlying causes of action are regrettably rare....more

CFPB Orders Indirect Auto Finance and Title Loan Companies to Pay $48.35 Million in Redress and Penalties For Abusive Debt...

The CFPB has entered into a consent order with Westlake Services, LLC, an indirect auto finance company, and its wholly owned subsidiary, Wilshire Consumer Credit, LLC, for alleged deceptive debt collection practices. The...more

CFPB Takes Action Against Second Indirect Auto Finance Company in Three Days

On October 1, 2015, the Consumer Financial Protection Bureau (CFPB) announced its second enforcement action in three days against an indirect auto finance company. In its latest action, the CFPB took aim at indirect auto...more

October Antitrust Bulletin

On September 8, the U.S. Court of Appeals for the Seventh Circuit granted a motion filed by household products manufacturer Clorox for interlocutory appeal of two decisions by the U.S. District Court for the Western District...more

Director Corday testifies before House Committee on Financial Services

On Wednesday, September 29, CFPB Director Richard Cordray appeared before the House Committee on Financial Services to answer questions regarding the Bureau’s activities since March. Director Cordray used his introductory...more

Fiat moves to dismiss proposed class action suit

Late last week, Fiat filed a Motion to Dismiss the proposed class action against it following reports of hacking into vehicle information systems and its announcement that it was recalling 1.4 million Dodge, Ram and Jeep...more

New Study Says ... Pace of Adopting Active Safety System Should Be Picked Up

Vehicle safety systems are experiencing a period of development unlike any in the history of the industry. While the 20th century focused on passive safety systems, such as crumple zones, seat belts, and airbags, these...more

Privacy & Cybersecurity Update - September 2015

Adviser to European Court of Justice Says US-EU Safe Harbor Should Be Declared Invalid - An advisory opinion issued by the advocate general to the European Court of Justice states that the U.S.-EU Safe Harbor should be...more

Your Data Breach Collided With My Personal Injury Coverage

Editors at Wired magazine recently engaged in a year-long project to develop a means to hack the onboard computer of a Jeep, and override the driver’s control of several critical vehicle functions. According to a disturbing...more

How Can the Automotive Industry Strengthen Its Regulatory Compliance Process and Reduce Its Compliance Risks?

Many Americans listened last week to the admissions by the now former President of Volkswagen that the company had been “dishonest” and had cheated on the U.S. emissions tests. How was this happening at the world’s #1...more

North Face Scales Sanyang Applications For Clothing and Services

In The North Face Apparel Corp. v. Sanyang Industry Co., Ltd., Opp. No. 91187593 (September 18, 2015), the Trademark Trial and Appeal Board (“TTAB”) handed The North Face Apparel Corp. (“The North Face”) significant victories...more

VW Emissions Testing Scandal – View from the Board

The Board of Directors role in the Volkswagen (VW) emissions test scandal is one that is only now being scrutinized. In an article in the New York Times (NYT), entitled “Problems at VW Start at the Boardroom”, James B....more

CFPB and DOJ Take Action Against Fifth Third Bank

On September 28, 2015, the Consumer Financial Protection Bureau (CFPB) announced two separate actions against Fifth Third Bank. The first action—brought only by the CFPB—relates to Fifth Third Bank’s marketing of credit card...more

The VW Scandal: Insular Senior Management and Ethical Breakdowns

The Volkswagen scandal will be studied for years. One of many themes from the Volkswagen scandal will rest on the complete absence of any commitment to corporate governance. Volkswagen’s weird corporate structure (it is owned...more

Safety tips for teenage drivers

Now that teens are back in school, it means a lot more time spent behind the wheel of cars as teenagers head to and from classes, sporting events and extra-curricular activities. According to the CDC, teen drivers between the...more

Volkswagen Caught – Another Car Maker Duping Consumers

The latest scandal from the automotive industry proves that the public, and now the planet, continue to be cheated despite well-meaning regulation designed to keep us all safe....more

Vermonters Sue Volkswagen Over Emissions Testing Deceit

Vermont Volkswagen car owners headed by Charlotte resident Robert Turnau have sued Volkswagen companies in Germany and the United States over damages they suffered as a result of the company’s falsification of emissions...more

Automakers receive request for information letters about vehicle-to-vehicle communications’ privacy

This week, Senator Ed Markey and Senator Richard Blumenthal sent letters to 18 automakers requesting an update on vehicle-to-vehicle communications’ (V2V) privacy and security. The Senators are seeking information on each...more

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