Showing posts with label loses. Show all posts
Showing posts with label loses. Show all posts

Wednesday, March 14, 2012

Honda loses top spot in Consumer Reports survey

By Paul A. Eisenstein, The Detroit Bureau

In another setback for longtime Japanese quality leader Honda, it has been knocked out of the top spot according to the annual Consumer Reports Automotive Report Card by up-start Subaru.  Honda had topped the study for the last four years but has taken sharp criticism, of late, for a variety of problems, notably with the latest version of its long-popular Civic model.


Subaru, the maker of all-wheel-drive products like the Outback and Forester also topped industry giant Toyota in the yearly measure of performance, comfort, utility and reliability.


Japanese makers retained their lead, overall, in the annual automotive study.  But, “While Japanese automakers still hold the top five spots, their lead is shrinking. In some of Honda’s and Toyota’s recently redesigned models, cost-cutting has become more noticeable,” said David Champion, senior director of the Consumer Reports Automotive Test Center.


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Subaru’s lead in the Automotive Report Card might take some by surprise but the carmaking arm of Japan’s Fuji Heavy Industries has been on a tear in recent years.  It has set one annual sales record after another – even during the depths of the automotive recession, the industry’s worst in decades.


According to CR, the maker earned a score of 75 in the latest study, two points better than last year, due to better test scores for new models like the redesigned Impreza, Legacy and Outback.  Subaru’s average road test score is the highest among all makers, at 82, the magazine noted.


Honda, meanwhile, slipped by two points, to fourth among major automakers.  The maker was hurt by the poor reception given two recent updates to its line-up, the 2012 Civic and the 2011 Odyssey minivan.  But CR officials stressed that the Japanese maker is “still among the most reliable (brands) on the road overall.”


Another surprise came from Mazda, which shot to second in the Report Card, ahead of third-place Toyota.  It could be a big momentum booster for Mazda, which has been struggling to maintain sales and is about to place a big bet on its new CX-5 crossover, the first model to use the company’s advanced SkyActiv technology. Mazda claims the system will deliver near-hybrid fuel economy without the cost penalty.


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Mazda showed the biggest gain of any manufacturer last year, in fact, surging from seventh to second place by increasing its Report Card score by nine points.  Mazda’s gains reflected the high scores for the new Mazda3 model – as well as the maker’s decision to drop two poor-performing offerings: the Tribute SUV and RX-8 sports car.


Toyota retained its position among the top three brands despite all the problems it has faced in recent years.  The giant maker has traditionally been a leader in various quality and reliability studies but faced a series of sharp rebukes following its problems with safety and reliability in 2009 and 2010.  It was second only to Honda in the total number of vehicles recalled during 2011, in fact, after leading the U.S. recall list the two previous years.


The Japanese leaders, nonetheless, are facing an assault from Europe, Korea and the U.S. in the automotive rankings.  But at least one challenger stumbled this year, Ford Motor Co. plunging from fifth position to tenth.  Ford’s road test score actually improved by two points but it suffered from problems with its MyFordTouch infotainment system and the PowerShift automatic transmission used in the otherwise well-reviewed Focus remake.


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Ford claimed it has resolved both problems but not in time for the CR staff to measure changes in the field.


As for the other domestics, Champion noted, “GM and Chrysler are building nicer cars with each redesign. Still, their scores are dragged down by several older designs that score low in Consumer Reports testing or have reliability issues.”


As the makers replace older models, like the troubled Chrysler Sebring, Champion said he expects the Detroit makers to move up in the rankings.  Newer offerings, such as the Chrysler 200, helped the maker boost its overall score by nine points, though it remained in last place.


The Automotive Report Card is based on Consumer Reports tests of 275 different models and looks at issues ranging from performance to comfort, utility to reliability.  Each vehicle’s score balances the way it performed on the road and its reliability ranking, according to the magazine.

Monday, February 13, 2012

Honda loses small-claims suit over hybrid MPG

LOS ANGELES — The Southern California owner of a Honda hybrid car won her unusual small-claims court lawsuit against the automaker over the vehicle's failure to deliver its stated fuel economy.


Los Angeles Superior Court Commissioner Douglas Carnahan awarded Heather Peters $9,867 on Wednesday, saying Honda did mislead her about the expected mileage.


"At a bare minimum Honda was aware ... that by the time Peters bought her car there were problems with its living up to its advertised mileage," he wrote in the judgment.


Peters opted out of a class-action lawsuit so she could try to claim a higher payment for the failure of her Civic to deliver the 50 miles per gallon that was promised when she bought it.


Informed of the decision by The Associated Press, Peters exulted, "Wow! Fantastic."


"I am absolutely thrilled. Sometimes big justice comes in small packages," she said. "This is a victory for Honda Civic owners everywhere."


Honda hadn't seen the decision Wednesday afternoon but planned to issue a statement after it was reviewed, said spokesman Chris Martin.


Peters, a former lawyer, hoped to inspire a flood of lawsuits by the other 200,000 owners of the Hybrid Honda Civic model sold in 2006. She said that if all 200,000 owners of the cars sued and won in small claims cost, it could Honda Motor Co. $2 billion.


She launched a website, DontSettleWithHonda.org, and said she was contacted by hundreds of other car owners seeking guidance in how to file small claims suits if they opted out of a class-action case already filed.


The upside of small claims court is that there are no attorneys' fees and cases are decided quickly. Individual payments are far greater than in class-action cases.


Honda's proposed class-action settlement would give aggrieved owners $100 to $200 each and a $1,000 credit toward the purchase of a new car. Legal fees in the class action case would give trial lawyers $8.5 million, Peters said.


Legal experts had said it was unlikely that all owners would take the small claims route because of the time and energy involved in pursuing such lawsuits. But it was a unique approach that could have an impact.


Carnahan held two hearings on the claim in January.


Peters claimed her he car never came close to the promised 50 mpg and that it got no more than 30 miles per gallon when the battery began deteriorating. She still owns the car and wanted to be compensated for money lost on gas, as well as punitive damages, amounting to $10,000.


A Honda technical expert who testified at an earlier hearing said the company was required by federal law to post the sticker estimating the highest mileage the car could get. But he said the mileage varied on how the car was driven. The company said Peters was not deceived.


A judge in San Diego County is due to rule in March on whether to approve Honda's class-action settlement. Members of the class have until Feb. 11 to accept or decline the deal.


Small claims courts generally handle private disputes that do not involve large amounts of money. In many states, that means small debts, quarrels between tenants and landlords and contract disagreements. Attorneys aren't usually there; in California, litigants aren't allowed to have lawyers argue their case.


The limit for small claims damages in California is $10,000. In other states it ranges from $2,500 to $15,000.


Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.