Archive for May, 2016

If you have followed the auto industry at any rate for the past 10 years it probably does not come as much of a surprise the state of affairs that Mitsubishi motors finds themselves in today. We may have not know what would be their undoing, but we did all assume that it wouldn’t really be a matter of “if” but more so a matter of “when.” Mitsubishi is trying to atone among the public, there is not a degree low enough they would bow to atone for a breach of faith this sever. This is not to say that it is as bad as Volkswagen. But that being the case what Mitsubishi doesn’t have is a track record of a superior product, and they also do not have the financial resources to bail them out that Volkswagen has. This is bad considering the trend of most automakers. 

On Wednesday the president Aikawa made the announcement that he would be resigning immediately that will go into effect June 24. this is to take responsibility for the automaker overstating the fuel economy of its minicars and not correctly testing other models reaching as far back as 25 years. This is systemic and if it is 25 years in the making you can’t say that he is the sole reason, however, someone has to go, and the shareholders need to feel reassured that steps are being taken to rectify this blight on the reputation of their investment. This is going to cost the company a pretty penny, some experts believe something to the tune of $2.8 billion of its market value. This would be a big deal for a company like General Motors or Toyota, but for Mitsubishi it may be the final nail in the coffin for a long struggling car company.

mitsu“we thought we had sufficient investigations after previous cheating cases in 2003, but it was not enough, problem has deep roots,” the CEO announced.

Mitsubishi Motors has put forth efforts to reach ambitiously for fuel efficiency targets were also undercut by the fall out of its last major crisis. An employee said that “the key issue is that life’time employees live in a small society that has all the same types of people, they car more about what is happening within a five meter radius than common sense outside of it.” and it is that insulated mentality that may be damming the company and its future prosperity. 

What makes Mitsubishi Motors unique among auto makers is that they are part of the Mitsubishi corporation and are a not the flagship company within that more than 10 company system. However, they all adhere to the name Mitsubishi. Therefore, bad press for one is bad press for all and what may happen is that they simply dissolve the entire branch entirely. This could be seen as a kind of trimming the fat among investors and save the whole while still maintaining consumer trust. At any rate, no matter what they do they are going to be feeling the ill effects for some time to come and on the whole it does not look like there is an end in sight.

 

lemon lawsLuckily for consumers, there are laws in place that protect car buyers from the risk of purchasing a car that is absurdly unreliable when they’re guaranteed a typical vehicle that should operate fine given basic maintenance. Even if a car’s issues are covered by a warranty, vehicle owners would still be vulnerable to dealerships’ refusing to honor that warranty or from the possibility that the car must keep being taken back for the same repairs against and again. Both federal and local laws cover these potential issues, and it’s likely that they can offer you a remedy to your situation. Read on to figure out what lemon laws are and how they work.

The most fundamental lemon law in the United States of America is called the Magnuson-Moss Warranty Act, which was passed by Congress in 1975. The act covers warranties in general, including the warranties commonly placed on new cars. This act isn’t your only protection against faulty new cars, however.

In addition, every single state has its own lemon laws, which generally extend your protection even further, though the extent of that protection depends on which state you’re living in.

lemon2First, more on the Magnuson-Moss Act. At the time of the law’s passing, there was widespread abuse throughout the states of the warranty system and warranty provisions. Companies were as likely to attempt to wriggle out of supposed warranties with misleading jargon and blatant disregard as they were to honor whatever warranty they promised. Products were also commonly sold without warranties, while the warranties that were sold in addition often weren’t clear about the actual extent of the coverage. Then getting a warranty enforced was generally made exceedingly difficult as a way of discouraging a customer from pursuing it.

What Magnuson-Moss required was that the fine print of all warranties be immediately available to consumers before the selling of the product. It told manufacturers what needed to be included in the warranty as well. That said, Magnuson-Moss didn’t give consumers complete protection, and it only applied to consumer products that cost more than $5. It doesn’t require that a product come with a warranty either, which means if you buy one without a warranty you’re basically on your own. Still, it required that the following aspects be present in all warranties:

lemon4The warranty has to be designated as either “full” or “limited,” it has to be spelled out clearly and in a way that is reasonably readable, and it has to be available where the consumer can read it before buying. A full warranty implies that a customer can get any parts repaired provided that they didn’t work as advertised (and weren’t broken by the consumer), while a “limited” warratny implies that only under specific, spelled out conditions can a consumer get parts or an entire product replaced.

Then there’s state-wide lemon laws, which vary. California has the strongest lemon laws in the country since its passing of the Song-Beverly Consumer Warranty Act, which requires you to go to a manufacturer’s local representative (generally the dealer) to get a car repaired. If they can’t fix the problem that’s covered under warranty within a reasonable number of tries, you may be eligible for an entire vehicle replacement.

 

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