bankruptcy, recall

List of News and Information about bankruptcy and recall on 4WheelsNews.com

News and Information about bankruptcy and recall

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You also might be interested: gm, bankruptcy, ignition switch, recall, porsche, porsche 918 spyder, jeep, jeep grand cherokee, trackhawk, nhtsa, bmw, bmw 7-series, sedan, bmw m760li, zenos

GM execs could invoke bankruptcy terms to reduce recall liability

General Motors could potentially reduce its product liability relating to a recall of around 1.6 million vehicles caused by a faulty ignition if the carmaker would invoke the terms of its bankruptcy restructuring.  The terms of GM’s restructuring tell that the carmaker’s product liability extends only to accidents that happened after the reorganized company – the new GM – emerged from bankruptcy in July 2009.

Plaintiffs injured before July 2009 would have to seek redress from the defunct shell of GM – the old GM -- in Bankruptcy Court, where the chances of gaining compensation is slim.

GM's original restructuring plan would have rendered the carmaker immune to liability claims from all of its pre-bankruptcy cars, including the oldest models covered by the ignition switch recall, like the Chevrolet Cobalt, Pontiac G5 and Saturn Ion. But due to intense discussions with state attorneys general and consumer groups such as the Center for Auto Safety, GM changed the terms.

Read the entire article GM execs could invoke bankruptcy terms to reduce recall liability

Porsche recalls the 918 Spyder because the suspension control arms might crack

If you have a Porsche 918 Spyder in your garage, take note that you will have to bring your supercar back to your dealership because it had been recalled again. The company announced that they will recall 305 examples of the 2015 model year in the United States as connecting shafts for the suspension control arms might crack.

The automaker found in their analysis that the connecting shafts of the longitudinal and transverse control arms have become vulnerable to cathodic stress corrosion cracking. And in the long run, this could affect the car’s components, which will eventually need replacement. The car’s handling could be impaired, especially under extreme conditions (like racetrack use), if this is not replaced immediately, and this will increase chances of a crash.

Once you have brought your Porsche 918 Spyder to the dealership, the automaker will replace these parts with improved versions. You actually don’t have to leave your car overnight as it will take about seven to eight hours to complete - that is, if you are willing to wait. The automaker also made it clear that there had been no incidents that are directly related to this problem. But it is advisable that you bring your car back to the dealership for the replacement, just to be sure. Porsche will replace all parts with no additional charge, of course.

Read the entire article Porsche recalls the 918 Spyder because the suspension control arms might crack

Recall issued for Jeep’s Grand Cherokee Trackhawk to repair easily detachable fuel lines

There are various challenges attached to creating a vehicle with an output of 707 horsepower. First of all, the vehicle will have to be constantly supplied with a generous stream of fuel. Apparently, that task proved to be too much for one of the suppliers of the components for the Jeep Grand Cherokee Trackhawk.

National Highway Traffic Safety Administration reports that the fuel lines of this Trackhawk could detach. And when that happens, not only will the 6.2 liter supercharged V8 engine starve, but it will also start a fire.

Having said that, the FCA has reportedly recalled 1,242 units of these models in the United States to check and repair their fuel lines. The automaker estimates that these models were produced between October 10 during the beginning of the production and December 10, which is when a new quality control process was initiated. Lower versions of the Grand Cherokee are not affected here even if they have been furnished by the same supplier. This is because their fuel lines were made on a separate production line.

Read the entire article Recall issued for Jeep’s Grand Cherokee Trackhawk to repair easily detachable fuel lines

Recall is expanded for BMW M760Li xDrive over oil-leak risks

BMW saw a potential oil leak on the new M760Li, prompting them to recall the said vehicle last April. Today, a little over two months after issuing the first recall, BMW is once again recalling the M760Li for the same reason. While 97 examples have been initially affected, the latest recall notice covers a total of 206 vehicles as issued by the National Highway Traffic Safety Administration (or NHTSA).

One of the main reasons is the oil leaking from the oil cooler possibly going onto the front brakes, compromising the vehicle’s braking efficiency. The 2017 BMW M760Li xDrive sedan, which packs a total output of 592hp(600PS) and 590lb ft (800Nm) of torque, can go for a zero-to-62 mph sprint in only 3.9 seconds. Even if no injuries or accidents have been reported, recalling the affected vehicles is important to let them check and replace the engine oil cooler line or whatever is necessary to prevent any serious problems.

According to BMW, they will be working on the vehicles beginning August 7 and that the procedure will be free of charge and should not take more than two hours to complete. In spite of this, owners should wait to be contacted first by the dealership before bringing in their cars for a check-up.

Read the entire article Recall is expanded for BMW M760Li xDrive over oil-leak risks

Bad news for BMW, their new flagship sedan, the 2017 BMW M760Li xDrive is already being recalled not so long after its release. Why so soon, you ask? Well, an oil line in the engine compartment is leaking oil.

The worst part though is that it leaks down to the front brakes, which is highly dangerous for the car and the driver since this could affect stopping power. Especially since it packs a 6.6 liter twin-turbo V12 engine, that yields up to 601 horsepower and 590 pound feet of torque. The four-wheel drive comes with an eight speed automatic and can sprint to 60 miles per hour from zero in just 3.6 seconds. Imagine having to stop a car that fast with brakes that don’t work well due to an oil leak.

The premium sedan has a top speed of 155 miles per hour, and if customers got the M Driver’s Package, it can be stretched up to 189 miles per hour. M760Li, like the standard 7-series, has an “Executive Drive Pro” suite as well. With Dynamic Damper Contolled air springs and Dynamic Drive that reduce roll and increase comfort while driving.

Read the entire article 2017 BMW M760Li xDrive recalled due to oil leaks

British startup Zenos, which entered bankruptcy administration earlier this year is now back in business. The Norfolk-based sports car manufacturer was bought by a consortium of investors headed by AC Cars, another British brand. The consortium has acquired all of its assets including Zenos’ intellectual property, ten remaining cars assembled, as well as its Wymondham headquarters.

Zenos Cars was founded in 2012 by Ansar Ali and Mark Edwards ---both were formerly connected to two famous British automotive companies--Lotus and Caterham. The British automaker started out at Hethel Engineering Center with a small lineup of lightweight carbon-fiber sports cars including the Zenos E10. Using Ford EcoBoost for its engine, the Zenos E10 sports car is also made with an aluminum and composite chassis. Eventually, the company started experiencing financial setbacks due to high production cost.

AC Cars Limited meanwhile continues to manufacture the Cobra also known as the MkVI roadster or Shelby Cobra. Only recently, the British brand increased its lineup by building a right hand drive version of the iconic sports car.

Read the entire article AC Cars saves Zenos brand from extinction

The North American unit of German premium carmaker BMW is recalling around 19,000 units of its BMW i3 electric vehicle because of the risk of fuel leak. You may ask, “An electric vehicle having a fuel leak?” Yes, EVs aren’t supposed to suffer from a fuel leak, simply because they get their energy from a battery pack, not from gasoline or petrol. That would be the case for a typical EV.

However, a fuel leak may occur in the case of EVs with a complementary internal combustion engine that serves its purpose to extend the distance the unit could travel. Simply put, once the battery pack runs out of energy, the gasoline engine kicks in as the EV seamlessly shifts from electric power to fossil fuel, thereby serving as a range extender.

While the BMW i3 is a pure electric vehicle, there are customers who want to travel farther distances than its battery power could provide. Thus, the German premium carmaker is also offering a version of the BMW i3 that is fitted with a small range-extending gasoline engine. This version – the BMW i3 Rex – has been recently found to be at risk of a fuel vapor line, mainly due to the positioning of the fuel tank vent line and the ribbed wire protection sleeve for the battery pack.

Read the entire article BMW is recalling 19,130 units of i3 REx plug-in hybrid EV in the US due to possible fuel vapor leak

Come on baby, light my fire… Suddenly, a recall becomes a sensational news for more than 12 minutes and 33 seconds. Lamborghini earlier this week announced it is issuing a recall on the Aventador model range. According to the National Highway Traffic Safety Administration, the recall includes the Super Veloce, the Pirelli Edition, the Miura Homage and the Aventador LP720-4 50 Anniversario.

The notice said there are issues concerning the vehicle’s Evaporative Emission Control System, which had to do with some faulty purge valves and defective ROV (roll over valve) along its fuel tank.

The ROV basically seals off the valve opening in order to prevent fuel leaks under unfortunate circumstances. The purge valve meanwhile controls how much fuel vapor is purged from the carbon canister.

Read the entire article Lamborghini Aventador recalled due to engine fire risk, Veneno not part of it

Volkswagen Group’s dieselgate saga continues, but it appears the German company would be able to get out of trouble, but it would not be unscathed. This development comes as Volkswagen entered into an agreement with the United States Department of Justice (DOJ) and regulatory agencies to compensate customers whose vehicles are powered by the group’s 3.0-liter TDI diesel engines implicated in the emissions cheating scandal in 2015.

The new settlement agreement covers 83,000 Volkswagen Group vehicles powered by the group’s 3.0-liter TDI V6 engines that have been found to have employed software that helps them evade the emissions testing process. No thanks to this software, these V6 diesel engines seem cleaner than they actually are. Parties in the agreement – coming in the form of a proposed Consent Decree – include Volkswagen AG, Volkswagen Group of America, US DOJ, the Environmental Protection Agency (EPA), the State of California, the California Air Resources Board (CARB) and the California Attorney General. The latest settlement agreement is more or less similar to the one that covers Volkswagen’s 2.0-liter TDI engines.

Under the proposed Consent Decree, Volkswagen has agreed to recall and/or buy back the affected 3.0-liter TDI V6 vehicles from Volkswagen, Audi and Porsche brands. The program will be separated into two parts.

Read the entire article VW reaches agreement to recall and modify 3.0L V6 diesel engines involved in dieselgate scandal

Remember Zenos Cars, a British carmaker that specializes in designing and building lightweight and high-performance sports cars? If you are wondering how the company is faring with their E10 lightweight car, Zenos hasn’t been doing well and is, in fact, in dire financial straits. The severity of its financial problems has the company compelled to enter into administration, a process that is similar to bankruptcy protection.

According to a notice on the carmaker’s Web site, the company was placed under administration on January 16, 2017, with Irvin Milton Cohen and Gary Paul Shankland -- both of Begbies Traynor (London) LLP -- being appointed as Joint Administrators. Cohen and Shankland are now acting as Zenos agents without any personal liability. As Joint Administrators, Cohen and Shankland are now in charge of the management of the carmaker’s affairs, business and property.

Zenos’ humble beginnings can be traced to May 2012, when it was founded by Ansar Ali and Mark Edwards. Edwards and Ali were both employees at Lotus, and then at Caterham. However, Ali left Zenos in 2015 and joined the ranks at McLaren – although he remained a shareholder. According to his LinkedIn account, Ali is now the managing director for McLaren Special Operations (MSO) at McLaren Automotive. Edwards is currently Zenos’ chief executive, although his management powers are now gone.

Read the entire article British sports car startup Zenos Cars goes financially bust

Known for its luxurious bespoke interiors, the Bentayga's $275,000 price tag seems to be worth every penny for some people. However, Bentley happens to have overlooked something very important while assembling the production model for its latest Bentayga SUV. As it turns out, the bolts on the posh vehicle’s seat mechanism and dashboard were not properly secured. (tsk, tsk)

We know for a fact that a loosely tightened screw could compromise the vehicle’s overall safety. Over time, the frequent vibrations could make it lose its alignment completely. This is not something you’d expect from an SUV that costs an arm and a leg. Among Bentley’s bespoke interior add-ons include a fishing set, a Breitling tourbillon clock and a Linley hamper set that you can stuff with an exclusive picnic menu from Gloucestershire England’s Daylesford organic farm.

Only this year, Bentley added a new engine range for its famous Bentayga model. The Bentayga diesel comes with 4.0 litre V8 turbo charged direct injection engine. It uses the same powerplant as that of Audi’s SQ7 SUV. Thus, allowing it to produce as much as 429 hp and 664 lb-ft of torque. Basically, the Bentayga diesel can go from zero to one hundred kilometres per hour in less than 5 seconds, with top speed reaching 168 miles per hour.

Read the entire article Recall is ongoing for 2017 Bentley Bentayga due to injury risk from loose dashboard, seat

Automotive engineers have studied and have undergone rigorous training to be able to create the perfect motor vehicle - and this includes making the most precise mechanical and natural systems. Knowing that people do make mistakes, it is the automotive engineer's task to think ahead for possible problems that may arise in the future.

They have to put themselves in someone else's shoes, someone who doesn't speak automotive jargon, and be able to make solutions that are as easy as one, two, three. Being an automotive engineer is a tough job and there will always be some glitch in the system where things just don't go the way it's supposed to.

Even those who have built the most technologically advanced cars have to go through trial and error to spot problems. Lucky for those whose technical problems have arisen prior to distribution but there are just unlucky few that have had to be recalled. One of those unlucky few is the Bugatti Veyron.

Read the entire article Three Recalls Announced for Bugatti Veyron: What Went Wrong?

For failing to manage the recalls properly and in a timely manner, a record $105 million fine will be imposed on Fiat Chrysler Automobiles, according to two sources. They also said that this matter will be handled by an independent safety monitor under extensive penalties that the National Highway Traffic Safety Administration imposed.

In some of the cases, FCA will have to buy back some of the vehicles as part of the government’s investigation into how it handled almost 24 recalls that cover 11 million light vehicles. The recall covers 1.5 million older Jeep models with rear fuel tanks that were related to multiple fatal fires.

The Wall Street Journal was the first to report the fines and the terms of the settlement between the NHTSA and FCA. As part of the deal, FCA intends to give cash to convince those who own older Jeeps with rear fuel tanks to get repairs done. The sources said that the FCA may even offer an extra trade-in allowance on top of the value of recalled Jeep models if customers choose to trade it in.

Read the entire article NHTSA issues $105 million fine to Fiat Chrysler for mishandling recalls

A recall has been issued for 814 Ferrari vehicles to repair side airbags that were installed at the wrong angle. The recall, which begins on July 30, covers eight different models built from December 19, 2014, to April 29, 2015. These vehicles cost anywhere from $200,000 to more than $1.4 million.

From the website of the National Highway Traffic Safety Administration, we learned that Ferrari discovered the defects while it was conducting tests on the steering column of a 458 Italia. The Italian automaker found out this airbag deployed in a rotated orientation and this may lead to injury.

The leather skin that covered the airbag module had been incorrectly glued and the air-bag cushions had been put in at the wrong angle. Japanese supplier Takata Corp. built these airbags but they don’t have the same issues as those airbags that are currently involved in a massive recall across many brands.

Read the entire article Ferrari announces recall due to improperly installed side airbags

A recall will be issued for 88,346 Dodge Challengers by Fiat Chrysler Automobiles to repair a defect with the driver-side frontal airbag, the National Highway Traffic Safety Administration announced on its website last Saturday. According to the NHTSA safety report, the recall covers 2008-2010 model year Challengers produced between September 2007 and October 2010.

This report adds to the list that the NHTSA got from the company last May in relation to a nationwide recall to replace defective airbags built by Japanese supplier Takata Corp. The report revealed that moisture may get into the inflators on the affected devices and this could lead to rupture, spraying metal bits on the driver.

The agency also said that Chrysler will get a replacement for the frontal airbag inflators but this isn’t available for now. These Takata airbags are at the center of what is likely to become the biggest auto safety recall in the U.S., related to 8 fatalities and hundreds of injuries that span more than 10 years.

Read the entire article FCA announces Takata airbag recall of 2008-2010 Dodge Challengers

More Toyota models have been named in the recalls involving Takata front passenger airbag inflators, bringing the total number of vehicles with Toyota and Lexus nameplates in the United States to about 2,915,000 units.

Toyota has added 1,365,000 units to the recall. These are: model years 2003 to 2007 Corolla and Corolla Matrix; model years 2005 to 2006 Tundra; model years 2005 to 2007 Sequoia; and model years 2003 to 2007 Lexus SC430 vehicles.

The recall has been issued because the front passenger airbag inflators are at risk of rupturing when deployed and leading to serious injuries in the occupants. Toyota Motor North America chief quality officer Dino Triantafyllos said that the automaker is focused on its customers’ safety and security. That’s why it will quickly and appropriately respond to any developments.

Read the entire article Toyota adds 1.36 million more units to Takata-related recall

General Motors will continue to be under the scrutiny of the National Highway Traffic Safety Administration for at least one more year after federal safety regulators decided to extend a consent order that allows the government to closely monitor its safety processes. Last year, GM issued a massive recall due to a defect in its ignition switch.

According to the consent order last year, GM agreed to being overseen by the government for up to three years, as the price it has to pay for delaying to recall 2.6 million small cars with defective ignition switches. This problem has been associated with almost 200 injuries and at least 104 fatalities.

On the anniversary of the initial consent order, the NHTSA announced that it will have oversight on how GM manages safety matters for one additional year at least. The reason it gave was that it has been “a productive and effective tool” to handle potential safety issues “proactively and expeditiously.”

Read the entire article Ignition switch recall: GM will continue to be supervised by NHTSA for at least 1 more year

Only one day after Toyota and Nissan issued a recall of 6.5 million vehicles worldwide, there was a further expansion of the safety campaign related to defective airbags from Takata. This time, Honda is recalling about 4.89 million vehicles and Daihatsu said that about 260,000 units are affected.

If you own a Honda unit in the U.S. or Canada, you’re not part of the recall since the vehicles sold in these markets didn’t have the potentially defective airbags targeted in the latest recall. Instead, Honda’s recall affects about 1.7 million units in Japan that were built from 2002 to 2008.

The nameplates covered by the recall were produced in the U.S., Japan, and Thailand. The rest of the recalls are from the other regions. Honda said that the breakdowns of the regions will be announced locally. Meanwhile, the recall of Daihatsu-brand covers only cars built in Japan.

Read the entire article Honda, Daihatsu add 5 million vehicles to Takata airbag recalls

A recall has been announced for over 6.5 million cars sold by Toyota and Nissan around the world for the replacement of possibly defective airbag inflators produced by Takata Corp. Toyota is recalling around 5 million Corolla, Vitz/Yaris and other models sold globally. Via an email, Toyota revealed that this recall affects 35 models, which include 1.36 million units in Japan, 1.27 million units in Europe, 637,000 units in the U.S. and 18,000 cars in Canada.

Gordon Trowbridge (spokesman for the U.S. National Highway Traffic Safety Administration) said that in the last few days, Toyota, Nissan, and Japanese government officials have been in contact with the U.S. safety agency. He said that very soon, the NHTSA will announce "significant new steps" related to accelerating the recalls of these Takata products.

He added that it’s not yet known what the root cause is for the defect but it’s clear that high humidity is a factor. This implies that time and moisture are factors involved in this issue. According to a Takata spokeswoman, an investigation has been started on what caused the airbag problems. She also said that the company is cooperating with the carmakers.

Read the entire article Toyota, Nissan expand airbag recall to 6.5 million more cars

Honda Motor Co.’s profits in the latest quarter suffered a beating, with the automaker failing to meet its main targets for full-year earnings and unit sales, Executive Vice President Tetsuo Iwamura announced. This is said to be primarily due to lukewarm sales and high recall costs. In the January-March fiscal fourth quarter, its operating profit dropped 32% to 111.94 billion yen ($935.7 million) from the previous year’s 165.29 billion yen ($1.38 billion).

Honda’s net income also declined by 43% to 97.84 billion yen ($817.9 million), from the previous year’s 170.51 billion yen ($1.43 billion). In the quarter, its revenue rose by 8.3% to 3.35 trillion yen ($28 billion).

Meanwhile, worldwide sales climbed slightly by only 0.8% to 1.2 million vehicles, boosted by sales in mainland Asia and North America. Iwamura also said that earnings slumped because of its tepid sales volume and huge recall costs as well as the expenses related to ramping up the HR-V crossover at Honda’s new plant in Mexico.

Read the entire article Honda’s profits for Q1 2015 fell 32% due to poor sales, recall costs