Dec 21 2008

What are “Secret Warranties”?

Published by admin under FAQ

Sometimes a manufacturer makes a design or production mistake on a motor vehicle. If dealers report a number of complaints about a certain part or vehicle, the manufacturer may allow dealers to repair the problem at no cost to you even if the warranty has expired. A service bulletin notifies the dealer of the problem and how to resolve it. Because these free repairs are not publicized, they are called “secret warranties.” The National Highway Traffic Safety Administration (www.nhtsa.dot.gov) maintains a database of service bulletins filed by manufacturers.

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Jun 12 2008

How does the automobile recall process begin?

Published by admin under FAQ

A manufacturer may issue an automobile recall in response to owner complaints. The National Highway Traffic Safety Administration (NHTSA) influences the recall process, and orders many recalls. The NHTSA fields safety-related complaints through letters and its toll-free telephone hot line. When the NHTSA registers enough complaints, NHTSA engineers perform an engineering analysis. Then the NHTSA engineers contact the automobile’s manufacturer. The manufacturer must either remedy the defect or launch its own defect investigation.

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May 22 2008

Ford Recalls 650,000 Trucks

Published by admin under General Articles

Ford Motor  is recalling more than 650,000 of its top-selling F-150 pickups as well as a Lincoln-branded truck because of a problem with the brake hose that could cause the vehicles to lose braking power. The automaker has recalled 2005 and 2006 model year Ford F-150 and Lincoln Mark LT trucks, according to the recall notice posted by the National Highway Traffic Safety Administration on its website Wednesday. Ford trucks covered by the recall are equipped with 5.4-liter engines. The brake hose on those trucks can detach from an intake manifold, causing the driver to lose the “assist” function that provides additional power to the brakes, according to the safety notice. The trucks could still be stopped with remaining braking power but it would require drivers to apply “more force to the pedal,” Ford spokesman Wes Sherwood said. He said Ford had received reports of 11 minor accidents but no injuries because of the brake hose defect. The sweeping recall covers almost 606,000 vehicles in the United States and comes just as Ford is gearing up to launch all-new versions of its F-Series pickup line. U.S. sales of the Ford trucks are down 16% this year in a downturn tied to high gasoline prices and a slumping U.S. housing market. In addition to the trucks covered by the U.S. government recall, there are another 50,000 of the trucks on the road in Canada covered by a similar recall procedure, Ford said. Ford said customers in the United States and Canada affected by the recall could have brake hoses replaced at Ford dealerships starting in late June.

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May 15 2008

Lemon Law Arbitration Not Recomended

Published by admin under General Articles

A potentially dangerous problem has been found with some 2007 Toyota Tacoma trucks, causing numerous truck owners to file complaints with the National Highway Traffic Safety Administration. All said their trucks suddenly accelerate or lurch forward while stopped.

“If you are in severe traffic, your car isn’t going to slow down,” Victor Downin of Foresthill, CA has reported. “It’s going to be a real problem not rear-ending another car.” Downin tried to work with his Toyota dealership first to get the problem corrected or to get Toyota to buy back the truck under California’s lemon law. He said Toyota told him to take it to three different dealerships for inspection. All three noted no problem.

Downin then headed to the California Arbitration Certification Program, a third-party arbitration process approved by the Department of Consumer Affairs and sponsored by the manufacturers. Downin’s arbitration was not successful. The arbitrator said there was not enough evidence to support his complaint. It was reported that he could try to get another warranty repair and go through arbitration again, or take his claim to court.

Downin claims in news reports that he does not plan to contact an attorney. He is waiting for the outcome of a National Highway Traffic Administration investigation into the surging problem. Toyota has said it was unaware of complaints but will fully cooperate with federal investigators if asked to do so.

Arbitration may work for some consumers who fear the legal system. But consumers usually do not win. Last year there were 2,049 consumer requests for arbitration. Consumers won repair in 17 percent of cases. Consumer won return or restitution 15 percent of the time. But in 60 percent of cases, consumers got nothing.

Moreover, participating in the process may actually harm your future legal claims against the manufacturer. You are giving the manufaucturer full access to your documents, statements, your vehicle without assistance of counsel. You may unwittingly make a disclosure or statement which can, and likely will, be used against you in a later lawsuit.

I’m sorry that Mr. Downin has such a poor opinion of the justice system that he feels compelled to wait for a federal agency to take action rather than hiring an attorney who specializes in California Lemon Law. Under the current administration, I am afraid Mr. Downin will be waiting a long time. I hope for Mr. Downin’s safety and the safety of others, he parks the vehicle.

Word to the wise: Don’t get stuck with a lemon. Sometimes all it takes is a letter from an attorney to get a manufacturer to realize it is going to have to buy back the vehicle. Don’t wait for the manufacturer to do the right thing. It could mean your life or livelihood.
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