Automotive News - September 8, 2008 - (Page 32) 32 • SEPTEMBER 8, 2008 Va. Honda dealership loses protest bid Eric Freedman freedma5@msu.edu A Virginia Honda dealership has lost its bid to force an administrative hearing on the award of a new Honda franchise 14.4 miles from the dealership’s store in Leesburg. The state Court of Appeals decision upholds a Virginia Department of Motor Vehicles ruling that Leesburg Imports LLC isn’t entitled to an administrative hearing on its protest. In early 2007, American Honda Motor Co. Inc. notified Leesburg that it had approved a new dealership in Chantilly. Leesburg, which does business as Leesburg Honda, then filed a protest with the department. Virginia’s franchise law allows samemake dealers to protest their manufacturer’s awarding new franchises within their relevant market area. When a protest is filed, the commissioner of motor vehicles must decide whether the market would support all the same-make dealerships in the relevant area. The size of a relevant market area depends on population: a 10-mile ra- Smaller pie Issue: Is a Virginia Honda dealership entitled to a hearing challenging the award of a franchise 14.4 miles away? Outcome: State appeals court says no. The dealership doesn’t plan to appeal further, its lawyer says. dius if there are more than 250,000 residents and a 15-mile radius for areas with 150,000 to 250,000 people, the court said. A lawyer for American Honda, Steven McKelvey of Columbia, S.C., told Automotive News the dealership had no legal standing to pursue its protest because it didn’t meet the legal criteria concerning population. Leesburg relied on a Technical Associates study that used 2000 Census data to show a population of about 171,000 within a 10-mile radius of its store. But American Honda offered an Urban Science Applications Inc. study that used a 2006 Claritas estimate putting the local population at more than 263,000 within the same radius. The motor vehicles department accepted the American Honda figures and denied Leesburg a hearing. In unanimously upholding the department’s decision, the appeals court said the commissioner had properly “considered both sources of data and found the 2006 data to be the most accurate,” especially in light of population growth in northern Virginia between 2000 and 2006. Richmond lawyer William Lehner, who represents Leesburg, said in an interview he was surprised that the commissioner had not interpreted the protest law in favor of his client. He said Leesburg Honda isn’t expected to appeal further. c Judge throws out deceptive-ads lawsuit against Toyota in Arkansas Eric Freedman freedma5@msu.edu Manufacturers that include EPAmandated fuel economy figures in their advertising are exempt from deceptive-practice claims under Arkansas law, a federal judge has ruled in a case against Toyota Motor Sales U.S.A. Inc. Chief Judge Jimm Hendren of the U.S. District Court for the Western District of Arkansas said manufacturers are immune from such civil suits because the Federal Trade Commission requires them to use those EPA figures in their advertising. As a result, Hendren dismissed a class-action complaint by Andrew and Lynda Godfrey, who had bought a new 2006 Prius. The Godfreys had sought damages, including punitive damages, on behalf of all Arkansas residents who had bought or leased a Prius since 2000, the year it went on the market. There will be no appeal, said the Godfreys’ lawyer, Bruce Mulkey, of Rogers, Ark. When a new 2006 Toyota Prius averaged 42 to 44 mpg, an Arkansas couple filed a complaint accusing Toyota of deceptive advertising. Meanwhile, in Florida, a federal judge is considering Toyota’s request to dismiss a similar lawsuit under that state’s laws, said Columbia, S.C., lawyer Steven McKelvey, who represents Toyota in both cases. Fair play Issue: Were Toyota Prius ads that included EPA-estimated overall fuel efficiency of 55 mpg deceptive, as Arkansas customers allege? Outcome: Federal judge says no, ruling manufacturers are exempt from consumer protection claims for using EPA figures. The plaintiffs’ lawyer says there will be no appeal. methods and calculations for determining fuel economy, and “federal regulations require that the Monroney vehicle stickers contain the phrase ‘your actual mileage will vary depending on how you drive and maintain your vehicle.’ ” The judge also said the law bars suits concerning advertising that is permissible under FTC rules. He added, “Clearly, the FTC regulations require the use of EPA estimates in fuel economy advertisements.” The case 30% More!! • • • • • • • On Every Deal! That’s what MenuVantage dealers earn. You can too! Today, every dollar in your pocket counts and nobody delivers more per deal than MenuVantage … Unlimited FREE RED FLAG checks! Gas Guzzler sales tools!! Free e-contracting! Integrated Subprime Menu! Integrated Service Menu! Integrated Bi-weekly program! Route One integration! Join more than 9,000 users nationwide (Plus over 60 major providers!) using our web-based menu sales tools to add hundreds of millions in worry-free Sales, F&I and Service profits! CALL TOLL-FREE TODAY! 1.877.MENUVAN (1.877.636.8826) sales@menuvantage.com • www.menuvantage.com PROFITS DELIVERED The Godfreys asserted that in choosing a Prius, they relied on Toyota’s ads and statements by the dealership that the car had a fuel efficiency of 60 mpg in city driving. But, they say, they “only average 42 to 44 mpg while predominately driving their Prius in the city.” The Arkansas deceptive-tradepractices suit accused Toyota of inducing customers to buy a Prius “with false statements of its fuel efficiency and the cost savings realizable from its purchase.” Specifically, Toyota advertised “remarkable overall efficiency of 55 miles per gallon of gasoline — 60 mpg in the city and 51 mpg in highway driving conditions — when Toyota knew or should have known that the Prius would not perform as represented.” The suit refers to U.S. Energy Department figures indicating “that the true overall efficiency of the Prius is much closer to 46 mpg — 48 in the city and 45 in highway driving conditions — and may be lower than that.” In asking Hendren to toss out the case, Toyota successfully argued that “there is nothing unfair or deceptive about properly identifying and advertising these official government estimates.” Hendren agreed, saying the EPA is responsible for establishing the test EPA estimate was required Finally, Hendren rejected a claim that Toyota had been unjustly enriched by its misleading advertising, saying, “Toyota had the legal right to advertise the EPA fuel economy estimates as it was required to do by the FTC.” In California, a federal judge last year denied a motion by American Honda Motor Co. to toss out a similar case without trial. But that suit, which is pending, involves the Civic Hybrid and did not raise the legal issue of FTC requirements. c http://www.ilocategps.com http://www.menuvantage.com http://www.menuvantage.com
Table of Contents Feed for the Digital Edition of Automotive News - September 8, 2008 Chrysler Financial hikes dealer floorplan fees Back in business? Detroit's best bets for cash: Feds, UAW Document fee suits swamp Missouri dealers Honda's family squabble Used truck prices rebound Ford mulls Lincoln compact Toyota delays RAV4 plan Proposed flex-fuel mandate roils industry Chrysler sues consultant over sourcing Cobalt transaction prices are up $775 since April Nissan looks to Mexico for engineering aid To retain truck buyers, Nissan offers more stuff Press: Chrysler is pushing forward on electric cars Leasing falls to 4-year low GM: Currency shift stalled Astra Dealers say they can sell the Republican ticket Industry loans clash with GOP climate Grand Cherokee will get axles from new plant Makers must resist urge to backslide as gas price dips Times are tough outside the U.S., too Chevrolet does tout its small cars Let natural gas power the fuel cell A crash course in collaboration Dodge wouldn't rush the RamBox Plastics are losing cost advantage Suppliers expect to benefit from tougher CO2 rules 'People just want Ford to go' For now, Honda will skip electric vehicles Toyota, Subaru enter race to market electric vehicles China exports squeezed Study: 15% of wrecked autos got washed titles Mercedes megadealer is bullish on luxury Sheehy: 'We are not in business for nostalgia' Automakers use driving schools as marketing tools Dodge smoothes Ram's rough edges â a little Honda touts leasing while others fall back Alysha Webb Study: Nonprime car loans get longer Dealer CPA group picks leader BMW, Edmunds team up on loan site for consumers Va. Honda dealership loses protest bid Judge throws out deceptive-ads lawsuit against Toyota in Arkansas Mo. dealership's protest gets go-ahead Pa. court throws out suit against Ford, dealership Dealers Ross' interiors company pushes into China, India More than a game Nissan's Tavares: Green conference keynoter Quality group seeks to set consulting standards Personnel Dana to shift HQ by Sept. '09 Tenneco to supply Volvo XC60 BMW gets Siemens conveyors IAC to cut 280 jobs in Sweden Polytec to acquire Peguform Metaldyne to sell Italy operation Federal-Mogul to build India plant Beck, Delphi make pact TRW to supply Chinese sedan Auto profits rise in Russia Black Book expands data Hayes Lemmerz cuts losses Ford: Buyouts are a tough sell GM's party plans include production Volt An ice-cold August for auto sales Big drop in Aug. output Lights, camera . . . Volt? In case the roads get too quiet . . . The Insight rides again Lagonda brand will be back Milwaukee road trip: No old pals, but 1 new lesson Choice of Odell seen as Ford vote of confidence in Volvo Dana sort of wins an award Automotive News - September 8, 2008 Automotive News - September 8, 2008 - (Page Introducti) Automotive News - September 8, 2008 - Detroit's best bets for cash: Feds, UAW (Page 1) Automotive News - September 8, 2008 - Detroit's best bets for cash: Feds, UAW (Page 2) Automotive News - September 8, 2008 - Toyota delays RAV4 plan (Page 3) Automotive News - September 8, 2008 - Cobalt transaction prices are up $775 since April (Page 4) Automotive News - September 8, 2008 - Cobalt transaction prices are up $775 since April (Page 5) Automotive News - September 8, 2008 - GM: Currency shift stalled Astra (Page 6) Automotive News - September 8, 2008 - GM: Currency shift stalled Astra (Page 7) Automotive News - September 8, 2008 - Grand Cherokee will get axles from new plant (Page 8) Automotive News - September 8, 2008 - Grand Cherokee will get axles from new plant (Page 9) Automotive News - September 8, 2008 - Grand Cherokee will get axles from new plant (Page 10) Automotive News - September 8, 2008 - Grand Cherokee will get axles from new plant (Page 11) Automotive News - September 8, 2008 - Let natural gas power the fuel cell (Page 12) Automotive News - September 8, 2008 - Let natural gas power the fuel cell (Page 13) Automotive News - September 8, 2008 - Plastics are losing cost advantage (Page 14) Automotive News - September 8, 2008 - Plastics are losing cost advantage (Page 15) Automotive News - September 8, 2008 - Suppliers expect to benefit from tougher CO2 rules (Page 16) Automotive News - September 8, 2008 - 'People just want Ford to go' (Page 16A) Automotive News - September 8, 2008 - Toyota, Subaru enter race to market electric vehicles (Page 16B) Automotive News - September 8, 2008 - Toyota, Subaru enter race to market electric vehicles (Page 16C) Automotive News - September 8, 2008 - Toyota, Subaru enter race to market electric vehicles (Page 16D) Automotive News - September 8, 2008 - For now, Honda will skip electric vehicles (Page 17) Automotive News - September 8, 2008 - For now, Honda will skip electric vehicles (Page 18) Automotive News - September 8, 2008 - For now, Honda will skip electric vehicles (Page 19) Automotive News - September 8, 2008 - Study: 15% of wrecked autos got washed titles (Page 20) Automotive News - September 8, 2008 - Study: 15% of wrecked autos got washed titles (Page 21) Automotive News - September 8, 2008 - Mercedes megadealer is bullish on luxury (Page 22) Automotive News - September 8, 2008 - Mercedes megadealer is bullish on luxury (Page 23) Automotive News - September 8, 2008 - Sheehy: 'We are not in business for nostalgia' (Page 24) Automotive News - September 8, 2008 - Sheehy: 'We are not in business for nostalgia' (Page 25) Automotive News - September 8, 2008 - Sheehy: 'We are not in business for nostalgia' (Page 26) Automotive News - September 8, 2008 - Sheehy: 'We are not in business for nostalgia' (Page 27) Automotive News - September 8, 2008 - Automakers use driving schools as marketing tools (Page 28) Automotive News - September 8, 2008 - Dodge smoothes Ram's rough edges â a little (Page 29) Automotive News - September 8, 2008 - BMW, Edmunds team up on loan site for consumers (Page 30) Automotive News - September 8, 2008 - BMW, Edmunds team up on loan site for consumers (Page 31) Automotive News - September 8, 2008 - Judge throws out deceptive-ads lawsuit against Toyota in Arkansas (Page 32) Automotive News - September 8, 2008 - Pa. court throws out suit against Ford, dealership (Page 33) Automotive News - September 8, 2008 - Dealers (Page 34) Automotive News - September 8, 2008 - More than a game (Page 35) Automotive News - September 8, 2008 - Personnel (Page 36) Automotive News - September 8, 2008 - TRW to supply Chinese sedan (Page 37) Automotive News - September 8, 2008 - TRW to supply Chinese sedan (Page 38) Automotive News - September 8, 2008 - Auto profits rise in Russia (Page 39) Automotive News - September 8, 2008 - Auto profits rise in Russia (Page 40) Automotive News - September 8, 2008 - Auto profits rise in Russia (Page 41) Automotive News - September 8, 2008 - Auto profits rise in Russia (Page 42) Automotive News - September 8, 2008 - Auto profits rise in Russia (Page 43) Automotive News - September 8, 2008 - Auto profits rise in Russia (Page 44) Automotive News - September 8, 2008 - GM's party plans include production Volt (Page 45) Automotive News - September 8, 2008 - GM's party plans include production Volt (Page 46) Automotive News - September 8, 2008 - An ice-cold August for auto sales (Page 47) Automotive News - September 8, 2008 - An ice-cold August for auto sales (Page 48) Automotive News - September 8, 2008 - Big drop in Aug. output (Page 49) Automotive News - September 8, 2008 - Dana sort of wins an award (Page 50) Automotive News - September 8, 2008 - Dana sort of wins an award (Page 51) Automotive News - September 8, 2008 - Dana sort of wins an award (Page 52)
For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.