A Toyota Motor Corp.,'s model is on display at the automaker's Tokyo head office in Tokyo, Wednesday, May 8, 2013.The automaker is heading for a huge class-action lawsuit stemming from widespread breaking problems in 2010 (Itsuo Inouye/AP/File)

Toyota class-action suit worth up to $1.6 billion on the way

By Richard Read, Guest blogger / 05.19.13

In 2010, Toyota recalled millions of vehicles for "unintended acceleration" issues, which generated lots of negative press for the automaker and put the brakes on Toyota sales.

Though the recall has fallen out of the headlines, it's still the subject of a huge class action lawsuit working its way through federal court. According to a report in Detroit News, that case could be settled within the next month, and up to $1.6 billion hangs in the balance.

A QUICK RECAP

The National Highway Traffic Safety Administration began receiving complaints about sudden acceleration in Toyota vehicles as far back as 2002, but it took the 2009 deaths of California Highway Patrol Officer Mark Saylor and three of his family members to bring the issue to the public's attention.

Numerous investigations, accusations, speculations, hoaxes, and conspiracy theories later, some conclusions were reached. In 2011, NHTSA revealed that it found no electronic flaws on Toyota vehicles that might've resulted in sudden acceleration. However, there were problems with the design of Toyota's accelerator pedals, which had caused them to become trapped beneath floormats in some cases.  ( Continue… )

Surveillance cameras hang on a traffic pole on Worth Avenue in Palm Beach, Fla. A recent Florida law change shortened minimum yellow light lengths across the state, which could make intersections considerably more dangerous. (Steve Mitchell/AP/File)

Florida shortens yellow lights, traffic tickets soar

By Richard Read, Guest blogger / 05.18.13

Do you live in Florida? Have you received a ticket from a red-light camera lately?

There may be a reason for that: according to Tampa's CBS affiliate WTSP, the state recently shortened the legal length for yellow lights. That's caused a surge in red-light citations -- and proved beneficial for Florida's coffers.

WTSP became suspicious of yellow-light times last December, when a Hernando County woman was killed after another motorist ran a red light. Timing of the yellow light revealed that it was shorter than expected, making drivers more likely to run the subsequent red light and making the intersection considerably more dangerous. 

After further digging, reporters found that in 2011, a law had been changed to reduce minimum yellow-light lengths throughout the state. Previously, minimum lengths were based on the posted speed limit at the intersection in question or the average speed of drivers, whichever was greater. ( Continue… )

View of the interior of the Tesla Model S at the 2013 North American International Auto Show in Detroit, Mich. Tesla Motors currently displays its electric cars at company-owned showrooms, and completes sales online directly with buyers. (James Fassinger/Reuters/File)

Tesla Motors can't email customers, says North Carolina law

By John Voelcker, Guest blogger / 05.17.13

How far will state car-dealer associations go to prevent Tesla Motors from opening its electric-car showrooms and selling cars over the Internet?

A long, long way.

In North Carolina, a new law passed by the state Senate would apparently make it illegal for Tesla to e-mail its customers.

In other words, if you're a North Carolina resident who has a question about Tesla, the new law may prohibit Tesla Motors [NSDQ:TSLA] from responding to your question via e-mail.  ( Continue… )

Subaru's 2014 Forester was the only small SUV tested by the . Insurance Institute for Highway Safety that earned an acceptable rating for protecting passengers from a front-end collision. Eleven of 13 small SUVs rated marginal or poor. (Subaru of America, Inc./PRNewsFoto/File)

Small SUVs fail crash test. Is yours on the list?

By Philip LeBeau, CNBC Auto and Airline Industry Reporter / 05.16.13

Some of the most popular small SUVs have failed crash tests that simulate a common and deadly front end collision.

"These are troubling results," said Joe Nolan with the Insurance Institute for Highway Safety. "These small SUV's are very popular and for the most part pretty safe, but with these tests most of them did not do well."

For the first time the Insurance Institute for Highway Safety conducted small overlap crash tests with small SUV's. Eleven of the thirteen models tested received marginal or poor ratings. (Read More: Bigger Is Better: SUVs and CUVs Rule the Road in China)

"Too often many of these models did a poor job protecting the front occupant cabin," said Nolan. ( Continue… )

A Tesla Model S electric sedan is driven near the company's factory in Fremont, Calif. The Tesla Motors Model S received a rave review from notably cautious Consumer Reports recently. (Noah Berger/Reuters/File)

Tesla Motors to issue more stock, pay off Energy department

By John Voelcker, Guest blogger / 05.16.13

Since Tesla issued its first-quarter financials last week, its stock has been on a tear.

Not only did the company have its first profitable quarter ever, but the many investors who had shorted the stock of Tesla Motors [NSDQ:TSLA] are now faced with the threat of expensive margin calls.

So Tesla is taking advantage of the price runup; it announced Wednesday afternoon that it would issue up to 2.7 million to 3.1 million more shares of its common stock.

At today's closing price of $84.84 per share, that would net the company $229 million to $263 million. It will also offer $450 million in convertible debt.  ( Continue… )

Tesla Motors workers cheer on the first Tesla Model S cars sold during a rally at the Tesla factory in Fremont, Calif. There has always been skepticism about whether Tesla would move forward with a battery-swap system, Fisher writes, whether for functional or economic reasons. (Paul Sakuma/AP/File)

Tesla Motors teases battery swapping for Model S electric car

By Thomas Fisher, Guest blogger / 05.14.13

Last week, one day after Consumer Reports called the Model S the best car it had tested since 2007, Tesla quietly announced that it will make the car a whole lot better.

On page 38 of a May 10 filing with the Securities & Exchange Commission, Tesla Motors [NSDQ:TSLA] discussed factors that may influence the adoption of electric vehicles.

Among the factors discussed was its ability to "rapidly swap out the Model S battery pack, and the development of specialized public facilities to perform such swapping, which do not currently existbut which we plan to introduce in the near future." (our emphasis)

Hmmmmmm.  ( Continue… )

Tesla workers cheer on the first Tesla Model S cars sold during a rally in 2012 at the Tesla factory in Fremont, Calif. Commentators say in the long run Tesla is unlikely to remain independent. (Paul Sakuma/AP/File)

Would Apple really buy Tesla?

By John Voelcker, Guest blogger / 05.14.13

It's been a great run for Tesla Motors these last few months.

The startup electric-car maker delivered 4,900 Model S luxury sport sedans from January through March, got a rave review from Consumer Reports, and reported its first-ever profitable quarter.

CEO Elon Musk even dropped hints that it might be working with Google on self-driving car technology.

But Green Car Reports argues that Tesla is unlikely to remain independent in the long term. ( Continue… )

A Lamborghini sports car logo is pictured during an event to mark the 50th anniversary of the carmaker in downtown Milan. The new Lamborghini Egoista concept car presents some interesting technology we may see in the future. (Alessandro Garofalo/Reuters/File)

Lamborghini Egoista concept car a 'four-wheeled UFO'

By Viknesh Vijayenthiran, Guest blogger / 05.13.13

Over the weekend, the first photos and details for a brand new Lamborghini concept cropped up. We now have all the official details for the concept, which goes by the name “Egoista” and was developed as a tribute to Lamborghini’s 50th anniversary by a team led by Volkswagen Group designboss Walter De Silva.

The concept’s name, which is Spanish for “selfish,” has been applied because of the single-seat design. But rather than signify a potential for single-seat racing, the design was picked to allow its driver the ability to express their individual personality to the maximum.

“This is a car made for one person only,” De Silva explained at the unveiling of the Egoista at Lamborghini’s 50th anniversary Grande Giro drive, which took place in Italy during the past week.

The Italian designer also used the words “hedonism,” “four-wheeled UFO” and even “Never Never Land” in describing the car.  ( Continue… )

A Ford 2013 C-MAX Hybrid vehicle is seen on display outside the Michigan Assembly Plant in Wayne, Mich. Complaints about the C-MAX's gas mileage have put the EPA's mileage tests under scrutiny. (Rebecca Cook/Reuters/FIle)

Should EPA gas-mileage ratings tests change?

By John Voelcker, Guest blogger / 05.12.13

Your mileage may vary.

We've heard it for years, we all know it's true, and yet we put our trust in the EPA's fuel-efficiency ratings as a guide to what kind of gas mileage a car will really get.

Now, two cars--the 2013 Ford C-Max Hybrid and the 2013 Ford Fusion Hybrid--have brought the failings of the EPA test system to the fore.

10-15 percent leeway

In general, buyers seem comfortable with variance of 10 or 15 percent from the advertised EPA ratings.

And although automakers generally publicize only the higher rating number (for gasoline cars, always the highway cycle), the EPA's combined rating is usually pretty close to real-world fuel economy for most buyers--within that margin.

But the new 2013 C-Max and Fusion hybrid models have generated a drumbeat of dissatisfied buyers, who claim their real-world mileage doesn't even come close.

Inevitably, there are now lawsuits.

'What was Ford thinking?'

Here's just one of many comments Green Car Reports has received on the topic:

OPEN LETTER TO FORD: I thought my 2013 C-Max would be a Prius killer. NOT! As a returning Ford buyer, I feel deceived. I want to support U.S. companies and U.S. jobs.

What was Ford thinking when they published 47/47/47 estimates? Based on the advertised EPA estimates, I would have been OK with low 40s, but 28-33 mpg is not even in the ballpark.

This is not an issue about EPA testing standards, but rather an issue about setting false customer expectations in order to promote sales.

Ford's "47MPG" marketing campaign tarnished what should have been the rollout of a truly remarkable vehicle, the C-Max. Real-world MPG estimates should have been promoted in the mid-30s.

 Only EPA estimates allowed

We've gotten dozens of comments like this, following our coverage of the disparity between published 47-mpg combined EPA ratings and real-world figures achieved by drivers. ( Continue… )