Mercedes Recalls Vehicles for Overheating Transmissions
Mercedes-Benz USA, LLC. is recalling 354,434 2015-17 C300 4Matic, C300, CLA250, CLA250 4Matic and CLA45 AMG vehicles; 2017 C300 4Matic Cabrio, C300 4Matic Coupe, C300 Cabrio, C300 Coupe, E300, E300 4Matic, E400 4Matic Wagon, E43 AMG 4Matic, GLA250, GLA250 4Matic and GLC300 4Matic Coupe vehicles; 2016 C350e and GLC300 vehicles; and 2016-17 C450 4Matic AMG Sport and GLC300 4Matic vehicles.
MBUSA will notify owners, and dealers will install an additional fuse in the electrical line to the starter, free of charge. Parts to remedy the vehicles are not currently available.
Owners will be notified of the recall beginning in late March. Owners will be mailed a follow up notice when remedy parts are available, currently expected to be in July.
AG Unveils Updated Lemon Law Guide
The Arkansas attorney general has produced an updated guide to the Arkansas Lemon Law.
The guide is available to download at ArkansasAG.gov or for delivery by mail. With a more-condensed version, costs incurred by dealerships to purchase the guide will be reduced by 20 percent.
To comply with the Arkansas Lemon Law, automobile dealers may purchase boxes, which include 400 booklets, for $100 each. Costs cover printing, taxes and shipping. Dealerships can complete the order form online to request copies of the new guidebook, which includes sample letters to manufacturers and contact information for manufacturers.
Takata Agrees to Pay $1 Billion for Airbag Issues
Tokyo-based Takata Corp. pleaded guilty to one count of wire fraud and was sentenced to pay a total of $1 billion in criminal penalties stemming from the company’s conduct in relation to sales of defective airbag inflators.
Takata was sentenced by a federal judge to pay a total criminal penalty of $1 billion, including $975 million in restitution and a $25 million fine, and three years’ probation. Under a joint restitution order entered at the time of sentencing, two restitution funds will be established: a $125 million fund for those individuals who have been physically injured by Takata’s airbags and who have not already reached a settlement with the company, and a $850 million fund for airbag recall and replacement costs incurred by those auto manufacturers who were victims of Takata’s fraud scheme.
A court-appointed special master will oversee administration of the restitution funds. Takata will also implement rigorous internal controls, retain an independent compliance monitor for a term of three years and cooperate fully with the department’s ongoing investigation, including its investigation of individuals.
According to admissions made during the course of the guilty plea, from 2000 through and including 2015, Takata carried out a scheme to defraud its customers and auto manufacturers by providing false and manipulated airbag inflator test data that made the performance of the company’s airbag inflators appear better than it actually was. Even after the inflators began to experience repeated problems in the field – including ruptures causing injuries and deaths – Takata executives continued to withhold the true and accurate inflator test information and data from their customers.
BMW Recalls Cars for Rear Joint Issues
BMW of North America, LLC is recalling 8,752 certain 2011-2012 135i Coupe, 1 Series M Coupe and 135i Convertible vehicles, 2011 Z4 sDrive 35i, 335i, 335d, 335i Coupe, 335is Coupe, 335i Convertible, 335is Convertible, 535i, 535i xDrive, 535i Gran Turismo and 550i xDrive Gran Turismo vehicles and 2012 740i and 740Li vehicles. The rear driveshaft constant velocity (CV) joint on the affected vehicles may fatigue and break.
BMW will notify owners, and dealers will inspect the rear driveshaft CV joint and, based on its production date, will replace it, free of charge.
The recall is expected to begin March 27.