Tag Archives: Lawsuits/Legal

In the race to put self-driving vehicles on the road, General Motors may be ready to take the lead with the new Ultra Cruise system it plans to put on the road by 2023.

Cadillac plans to expand the rollout of Super CruiseTM, the world’s first true hands-free driver assistance feature for the freeway. Super Cruise will be available on all Cadillac models, with the rollout beginning in 2020. After 2020, Super Cruise will make its introduction in other General Motors brands.
GM is currently rolling out its original Super Cruise system on a wide range of products, including Chevy and GMC models, as well as those from Cadillac.

The new system will increase by tenfold the number of miles of roads GM’s Super Cruise system can operate on – and where the current system only can operate on limited-access roadways, Ultra Cruise will cover “every road including city streets, subdivision streets and paved rural roads, in addition to highways,” GM said in a statement announcing the new technology. At launch, Ultra Cruise will operate on 2 million miles of roads, said GM, with a goal of increasing that to 3.4 million.

With Ultra Cruise, GM seems positioned to leapfrog Tesla, the EV automaker that marketed the first “self-driving” system, Autopilot. Despite releasing a new update it refers to as “Full Self-Driving,” Tesla’s technology still requires drivers to keep their hands on the wheel at all times.

“Ultra Cruise is not just a game changer in terms of what it enables ­− a door-to-door hands-free driving experience − but a technological one as well,” said Doug Parks, GM’s executive vice president of Global Product Development, Purchasing and Supply Chain.

The race for autonomy

The auto industry is in a race to develop autonomous vehicle technology – with the eventual goal of having vehicles operate without the assistance of a human driver. GM’s San Francisco-based Cruise subsidiary recently won approval from the State of California to test prototype vehicles that don’t even have a steering wheel or other driver controls. But most experts believe that it will be late in the decade before such systems are ready for widespread use.

(Click to expand.)

In the meantime, the focus is on more limited systems that can reduce the role of the driver – though a motorist would still need to be ready to take control in an emergency, or if the vehicle were to travel outside a “geofenced” area.

A number of manufacturers are developing these systems – known in industry parlance as “Level 2 autonomy.” Tesla was first to market with the original Autopilot, GM following with Super Cruise which it is now rolling out on a wide range of vehicle lines.

Both have significant limitations and make various trade-offs. Tesla has dubbed the latest version of Autopilot “Full Self-Driving,” and many owners have been using the system hands-free. Some have been recorded going so far as to jump into the back seat while the vehicle is moving. But the automaker actually stresses that motorists need to maintain at least a loose grip on the wheel.

Tesla v GM

GM claims drivers actually can take hands off the wheel using Super Cruise. But the system is restricted to about 200,000 miles of U.S. and Canadian roads. And the GM system uses a camera to ensure that the driver remains alert and in position to take over quickly, if necessary.

Tesla FSD Simulation
A digital simulation of Tesla’s “Full Self-Driving” system.

Tesla has, until recently, not monitored the driver. But it plans to do so after coming under fire for the lax way in which many drivers use Super Cruise. In fact, the National Highway Traffic Safety Administration is conducting a probe of Autopilot in the wake of several dozen crashes, a number of those involving Tesla vehicles impacting stationary emergency vehicles.

“The way Tesla is doing it, there always will be error problems,” said Sam Abuelsamid, principal auto analyst with Guidehouse Insights.

Tesla relies on the data gathered by a network of cameras to operate Autopilot. GM, on the other hand, uses radar, as well as ultra high-definition street maps, with Super Cruise. And the Ultra Cruise system will add LIDAR, a 3D laser technology.

“This is a more robust solution,” said Abuelsamid. “They’ve taken a safer approach (even as they) expand tenfold the number of roads they can use Ultra Cruise on.”

No rollout roadmap – yet

The GM system will be able to recognize street signs and traffic signals, as well as pedestrians, bicyclists and animals. And it will be able to handle pretty much any sort of situation that a human driver would normally be required to negotiate, according to GM.

The automaker hasn’t provided a specific roadmap for rolling out Ultra Cruise but it’s expected to follow the same model used for the original Super Cruise system. That would begin with the flagship Cadillac brand and then expand to other GM brands.

Motorists pay additional fees for vehicles equipped with the basic Super Cruise hardware and GM recently announced that it will charge a monthly usage fee, as well. Tesla, Ford and other manufacturers are adopting similar pricing models.

According to a new study ranking driving in the 100 largest U.S. cities, Raleigh, N.C. ranks tops according to a new report by WalletHub

Raleigh NC at night
Raleigh, North Carolina was ranked as the top city to drive in for 2021.

If there’s a No. 1, then you know there’s a No. 100: Oakland, California placed last.

The ease of driving in America’s largest cities matters, as 87% of daily trips are made in cars, trucks and SUVs. On average, Americans spend about 6 hours a week driving or riding in automobiles — that’s nearly 13 days.

“Longer time behind the wheel could lead to issues such as fatigue, distraction, and impatience for drivers, which are all contributing factors for vehicle crashes,” said David Yang, executive director for the AAA Foundation for Traffic Safety, in a statement.

COVID caused changes

And the pandemic has led more people to abandon public transit for private transportation. But the increased number of private cars is clogging roads and raising tempers, so a look at the overall quality of driving life is timely.

Oakland California
If there is a best place to drive, there’s also a worst: Oakland, California came in last at No. 100.

The WalletHub study measured such metrics as gas prices, new car costs, maintenance costs, insurance rates, parking rates, hours spent in congestion, average commute time, quality of roads and bridges, weather, fatality rates, seat belt usage, the number of uninsured drivers, car thefts, larceny, access to car dealers, repair shops, car washes, gas stations and garages.

Raleigh, N.C. placed first at 67.662 points. It was followed by Lincoln, Nebraska222.; Greensboro, N.C.; Winston-Salem, N.C.; and Corpus Christi, Texas rounding out the top five. 

At the other extreme was Chicago at 95th with 40.69 points, it was followed by New York City; Philadelphia; San Francisco; Detroit; and Oakland. 

Other measurables

But the study also ranked several other metrics as well, coming with some interesting results.

Residents in El Paso, Texas and Lubbock, Texas tied for the least amount of time dealing with traffic congestion. Those living in Chicago, Philadelphia, and New York tied for spending the most time sitting in traffic.

Chicago downtown
Chicago ranked 95th in the top U.S. cities to drive in by WalletHub.com.

Chula Vista, California has the lowest fatality rate of 2.55 deaths per 100,000 residents; Memphis, Tennessee lays claim to the highest at 7.8 deaths. 

You’re least likely to have your car stolen in Irvine, California. Car thefts occur at a rate of 0.56 per 1,000 residents, while Oakland has the most at 11.61 per 1,000 residents.

Looking for cheap gas? Head to San Antonio, Texas, where it costs the least in America’s 100 largest cities: $2.66 per gallon. Avoid San Francisco where gas is the most expensive at $4.40 per gallon.

Parking your car costs 90 cents for two hours in Hialeah, Florida whereas it will cost you $34.80 for the same amount of time in Boston.

Car owners in Jacksonville, Florida enjoyed the lowest maintenance costs, which includes the cost of gas, while those in Portland, Oregon have the highest, narrowly beating out Honolulu, Hawaii. 

But you’ll spend the least amount of time in inclement weather in Las Vegas, Nevada — hardly a surprise. This contrasts with Portland, Oregon, which has the most rotten weather. Again, hardly a surprise.

General Motors doesn’t want to share the sandbox with Ford when it comes to using “cruise” in the name of semi-autonomous driving technology. 

Ford BlueCruise in F-150 driving
Ford is offering BlueCruise, a subscription-based version of Level 2 autonomous driving technology this fall.

In response to GM’s lawsuit against its fellow Detroit-area automaker, Ford asked the U.S. Patent Office to rescind the trademarks GM filed using the word. Officials claim that “cruise” is so generic a term that no one should be able to lay claim to it.

The “cruise” chaos came to the fore when Ford announced its new semi-autonomous driving technology in mid-April, dubbed BlueCruise. GM already employs two versions of the word for similar purposes. It’s Super Cruise technology performs a similar task to Ford’s new product. Meanwhile, it also owns a significant stake in Cruise LLC, which is developing autonomous vehicles to be used as robo-taxis in the San Francisco area.

Going to court

Cruise Bolt in SF
GM’s Cruise subsidiary is hoping to offer a fleet of robs-taxis in the near future.

“Ford’s decision to rebrand by using a core mark used by GM and Cruise will inevitably cause confusion between the parties, the affiliation, connection, or association between them, and/or origin, sponsorship, or approval of their goods and services,” GM said in the lawsuit. 

The lawsuit was filed in the U.S. District Court for the Northern District of California in San Francisco where GM’s self-driving enterprise is testing the system without safety drivers. According to the lawsuit, GM, Cruise and Ford “engaged in protracted discussions” following Ford’s announcement, “but Ford insisted on moving forward with the ‘Blue Cruise’ name despite Cruise’s preexisting rights.” 

GM and Cruise are asking for Ford to pay monetary damages related to the incident and for the manufacturer to stop using the BlueCruise name. 

Cadillac’s Super Cruise system allows some hands-free driving but requires drivers to stay focused in the even of an emergency.

“While GM had hoped to resolve the trademark infringement matter with Ford amicably, we were left with no choice but to vigorously defend our brands and protect the equity our products and technology have earned over several years in the market,” according to Reuters. 

Can’t sue if no infringement

While GM went to court, Ford — which contends the suit is without merit — instead went to the patent office. That move is seen by some as akin to pouring gasoline on a fire; however, company officials claim there was little choice.

“To defend itself, Ford has no choice but to ask the U.S. Patent and Trademark Office to rescind both of GM’s “Cruise” and “Super Cruise” trademark registrations that should have never been registered in the first place,” Ford said. “Any number of companies use the word ‘cruise’ in connection with driver assist technology.”

Ford essentially contends the word cruise is commonly used by all automakers for similar technologies, in particular, cruise control. However, the automaker offered other examples, including “smart cruise control” by Hyundai, “predictive cruise” by Mack Trucks and more.

Voltswagen

The “Voltswagen” April Fool’s Day prank has led to an investigation by the SEC.

What started out as a “humorous” advertising and marketing ploy could land German automaker Volkswagen in serious trouble with the federal government.

The Securities and Exchange Commission (SEC) is apparently looking into VW’s “Voltswagen” marketing stunt to determine if it hurt company stock prices and may have broken any U.S. securities laws, according to German news outlet Der Spiegel.

The incident in question dates back to March 29. As a sort of early April Fool’s Day prank (and marketing ploy), VW “accidentally” released a rough draft of a press release declaring the company was going to change its name to “Voltswagen” as part of a larger effort to promote its ever-growing line-up of electric vehicles (EVs).

This action was picked up by the worldwide automotive press and on March 30 VW issued an official press release to several news outlets, including the Associated Press, confirming the leaked statement from the day before.

This action resulted in VW’s stock price going up. At one point it was 12.5% above its price before the whole incident.

SEC looking at jump in stock price

VW of America President Scott Keogh took responsibility for the poorly received April Fools’ prank that wasn’t on April 1.

This is what caught the attention of the SEC, taking what many considered a fairly unfunny publicity ruse to a possible federal offense.

After the April Fool’s stunt failed in the eyes of the media and the public, VW issued a press statement saying the releases were actually part of a larger tradition in which companies often issue prank statements.

This one just meant to also focus the world’s attention on VW’s growing EV portfolio.

But public statements that affect stock prices usually don’t get an “April Fools” immunity. An SEC investigation could result in charges against the company.

Several news organizations, including The New York Times and Reuters, have asked for a comment from VW. So far, the company has declined to issue one.

Just one of many VW legal scandals

This is not the first time VW has gotten into trouble for the way it conducts its business.

Oh those wacky Germans!! As quickly as it got here, VW took it away: Voltswagen is the company that never was.

In October 2015, as Volkswagen struggled to deal with its diesel emissions scandal, new data raised questions about whether the automaker properly reported death and injury claims to U.S. regulators during the past decade.

A study by the financial advisory firm Stout Risius Ross Inc., found that Volkswagen of America reported nine times fewer deaths and injuries than the average of the 11 largest automakers operating in the U.S. market. Significantly, VW reported less than half as many incidents as either Fiat Chrysler or Honda, both of which have been fined for underreporting their own death and injury data.

Back in September 2015, the EPA accused the German maker of using a so-called “defeat devices,” software designed to fool government emissions tests, on a variety of luxury models from the Audi and Porsche brands. The feds charged VW took steps to cover up excess emissions on 482,000 vehicles sold in the U.S. during a 7-year period.

The end result was VW paying billions of dollars in fines to various governments around the world. The company also faced numerous consumer lawsuits that further cost the company money.


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Toyota agreed to pay a $180 million fine after failing to report EPA-mandated emissions information.

Toyota Motor agreed to pay the largest civil penalty ever – $180 million – to settle a lawsuit brought by the Department of Justice because the automaker failed to report violations of U.S. emissions regulations for a decade.

The Japanese automaker avoided reporting violations of the Clean Air Act to the Environmental Protection Agency between 2005 and 2015. The company didn’t report defects that hindered its vehicles’ ability to control tailpipe emissions “designed to protect the public health and the environment from harmful air pollutants,” the DOJ said.

The lawsuit was filed and settled simultaneously in U.S. District Court in Manhattan because Toyota agreed to all the provisions in the consent decree. The company’s late or, in some cases, non-existent filings allowed for millions of potentially non-compliant vehicles to be sold in the U.S.

(New Toyota patent lets dirty car drive itself to the car wash.)

For a decade, the automaker systematically failed to report defects and top Toyota executives in Japan knew about the practice but failed to stop it, the DOJ contends.

Toyota either delayed or simply failed to send emissions information to the EPA from 2005 – 2015.

“Toyota shut its eyes to the noncompliance,” Audrey Strauss, the acting U.S. attorney, said in a statement, “failing to provide proper training, attention, and oversight to its Clean Air Act reporting obligations.”

“Toyota’s actions undermined EPA’s self-disclosure system and likely led to delayed or avoided emission-related recalls, resulting in financial benefit to Toyota and excess emissions of air pollutants. Today, Toyota pays the price for its misconduct with a $180 million civil penalty and agreement to injunctive relief to ensure that its violations will not be repeated.”

(Toyota boss Akio Toyoda remains EV skeptic.)

While Toyota officials agreed to pay the fine, they appear unwilling to go as far as being the environmental bad guy the Justice Department suggests. Eric Booth, a spokesman for the automaker, told the New York Times the company alerted the authorities as soon as the lapses came to light, and that the delay in reporting “resulted in a negligible emissions impact, if any.”

Toyota contends that while it erred in not sending the information, the impact was negligible.

“Nonetheless, we recognize that some of our reporting protocols fell short of our own high standards, and we are pleased to have resolved this matter,” Booth added.

This isn’t Toyota’s first brush with this issue. In 2003, the automaker was penalized $20 million for selling 2.2 million vehicles with noncompliant on-board diagnostic systems. That was two years before the current round of transgressions began.

(Launching 25 models over 16 months, remain active in passenger car segments.)

In addition to the financial penalty, the company is working under an injunction that ensures it complies with emissions-reporting requirements going forward.


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GM is reportedly looking to apply for a banking charter for its financing unit, GM Financial.

General Motors has been generating plenty of attention for its plans to shift to battery-electric vehicle production; however, the auto company has also been looking to get back into some old businesses too, namely banking.

It’s an oversimplification, but the Wall Street Journal reported today that GM’s captive financing unit, General Motors Financial Company Inc. is seeking to apply for a banking charter. The move would allow the company to accept deposits — like a bank. The move is part of a strategy allowing it to form an industrial loan company.

The specialized charter gives a company the ability to own a commercial firm and banks — typically a no-no with a traditional banking license, the newspaper noted. GM has done this before with its GMAC unit, which not only offered auto loans, but also home mortgages and other types of lending options.

(GM financial arm strengthens loan portfolio.)

GM’s financing arm, GM Financial, has contributed to the auto company’s bottom line in growing amounts of significance during the past decade.

That could occur as early as next month, according to sources cited by the WSJ. The company has been nosing around the subject with federal and state regulators for several months. The Federal Deposit Insurance Corp. and Utah Department of Financial Institutions are reportedly on board with this.

GMAC nearly failed during the Great Recession in 2008 due to subprime mortgages. The government bailed the unit it out and it was renamed Ally Financial, and GM eventually sold its stake in 2013. Ally Financial currently offers auto loans for several automakers, including Fiat Chrysler and Hyundai, as well as offering online banking resources.

According to WSJ sources, this would not be round two of GMAC, rather the deposits would be used to help with the automotive loan business. It would essentially act as a low-cost form of capital for those auto loans. Currently, the unit has to issue debt in order to provide financing for its customers. It’s possible the newly chartered unit would offer high-yield savings accounts as well as other deposit-based accounts to consumers.

(Treasury adds capital to GMAC Financial Services.)

GM isn’t alone in offering financing to potential buyers. In fact, it’s often part of the marketing push to draw customers into dealerships by advertising low rates on new car loans and leases. It gives dealers a chance to secure sales to buyers with less-than-ideal credit scores.

The move to accept deposits would give GM Financial a low-cost form of capital for auto loans.

In the case of GM Financial, it’s added some green to the company’s bottom line. It generated $14.5 billion in 2019, accounting for 10.6% of GM’s overall revenue, WSJ noted. In 2010, the unit’s revenue was less than 1% of auto company’s revenue while it rose to 4.2% in 2015.

Getting the industrial loan company structure in place wouldn’t make it unique in the auto industry, the newspaper noted. Toyota Motor Co. and BMW AG employ similar units to not only offer auto financing, but home mortgages and credit cards. What is different is that few companies have attempted to get back into that business since the 2008 banking collapse.

(GM delivers $4B in Q3 earnings as auto market rebounds.)

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} #gJSomKNtPm #gJSomKNtPm_inpost .mo-optin-field.mo-optin-form-name-field::placeholder { color: #555555 !important; } #gJSomKNtPm #gJSomKNtPm_inpost .mo-optin-field.mo-optin-form-email-field::-webkit-input-placeholder { color: #555555 !important; } #gJSomKNtPm #gJSomKNtPm_inpost .mo-optin-field.mo-optin-form-email-field:-ms-input-placeholder { color: #555555 !important; } #gJSomKNtPm #gJSomKNtPm_inpost .mo-optin-field.mo-optin-form-email-field::placeholder { color: #555555 !important; } div#gJSomKNtPm .mo-mailchimp-interest-container { margin: 0 10px 2px; } div#gJSomKNtPm .mo-mailchimp-interest-label { font-size: 16px; margin: 5px 0 2px; } div#gJSomKNtPm input.mo-mailchimp-interest-choice { line-height: normal; border: 0; margin: 0 5px; } div#gJSomKNtPm span.mo-mailchimp-choice-label { vertical-align: middle; font-size: 14px; } div#gJSomKNtPm .mo-mailchimp-interest-choice-container { margin: 5px 0; }div#gJSomKNtPm .mo-mailchimp-interest-label { display:inline-block!important; } div#gJSomKNtPm span.mo-mailchimp-choice-label { vertical-align:baseline!important; } div#gJSomKNtPm .mo-mailchimp-interest-container { padding:18px 0 6px 0; } div#gJSomKNtPm .mo-mailchimp-choice-label { font-size:16px!important; }