The auto industry has been barraged with one scandal after another in recent years, just as new players are poised to enter the market. In the same week that Apple announced that it plans to ship its electric cars in 2019, Volkswagen AG is embroiled in an emissions scandal that may impact more than 11 million vehicles across the globe.
Auto Industry Stumbles
As has been widely reported in the media, the U.S. Environmental Protection Agency (EPA) has charged VW with violating the Clean Air Act by installing an emissions “defeat device” on several vehicle models. When installed, the device disengages the emissions control systems during normal driving. However, VW systems are programmed to come back online during lab testing in order to meet pollution standards.
Unlike its predecessors, VW is taking a proactive approach to the emission scandal by accepting liability and pursuing its own criminal complaint. However, the company will still take a significant financial and public relations hit. In fact, the automaker is expected to face fines of more than $18 billion, in addition to any damages resulting from private litigation.
In the wake of its own scandal, General Motors recently agreed to pay $900 million to resolve criminal charges related to its failure to recall defective ignition switches that are now linked to more than 100 deaths. The American auto manufacturer was already hit with a hefty civil fine from the National Highway Traffic Safety Administration.
High-Tech Threats in Vehicles
From automatic braking to lane departure warnings to voice-controlled navigation, technology plays an increasingly important role in today’s vehicles. Given Apple’s proven track record of entering new markets and quickly raising the bar, the established automakers have reason to be concerned. Google, Tesla, and other high-tech companies also pose threats, as they continue to fine-tune on their electric and self-driving vehicles.
Of course, not everyone is convinced that Tim Cook and company can make the leap into the auto industry. “When it comes to actually making cars, there is no reason to assume that Apple, with no experience, will suddenly do a better job than General Motors, Ford, Volkswagen, Toyota, or Hyundai,” Bob Lutz, the former chairman of General Motors, told CNBC. “So I think this is going to be a giant money pit.”
Over the next several years, the auto industry is poised for a significant shift, as electronic and other high-tech vehicles look to become the norm rather than the exception. It will be interesting to see if the traditional automakers can put their scandals behind them and keep pace with the tech companies.
Local Zoning and Land Use Rules Every New Jersey Rental Property Owner Should Understand
Owning a residential rental property in New Jersey involves more than finding tenants and collecting rent. Property owners must comply with a combination of state laws, municipal ordinances, building and housing codes, and zoning and land use regulations. These requirements can affect everything from the number of dwelling units permitted at a property to whether […]
Real Estate Litigation Explained: Top 5 Disputes and How to Avoid Them
The five most common real estate disputes are breach of contract claims, landlord-tenant conflicts, zoning and land use disagreements, construction claims, and boundary disputes. Understanding why each arises, and taking preventive steps early, can help property owners, tenants, developers, and investors avoid costly litigation. Key Takeaways: Real estate transactions are complex endeavors involving numerous parties […]
When a Child Turns 18: The Gap in Your Family’s Estate Plan
Once a child turns 18, parents lose the automatic legal authority to make medical and financial decisions on their behalf, even if the child still lives at home or remains on the family’s insurance. Three documents close that gap: a durable power of attorney, a health care proxy or directive, and a HIPAA authorization. For […]
Business Mediation: An Overview and Practical Tips
Business mediation is a confidential, voluntary process in which a neutral third party helps companies negotiate a resolution to a commercial dispute without going to trial. Because working with a mediator is very different from litigating in the courtroom, it is important to understand how commercial mediation works, when it makes sense for your dispute, […]
Top 5 Causes Leading to Construction Defect Litigation
The five most common causes of construction defect litigation are design defects, substandard materials, workmanship defects, code violations, and subsurface defects. Because these flaws can compromise a building’s integrity, functionality, or safety, they frequently lead to disputes involving multiple parties and high financial stakes. Key takeaways: What is Construction Defect Litigation? Construction litigation is complex, […]
How to Protect Your New Jersey Business When Going through a Divorce
The most effective ways to protect your business in a divorce are put in place before one begins: a prenuptial or postnuptial agreement, clean separation of business and personal finances, and divorce contingencies built into your operating or buy-sell agreements. If divorce is already underway, the priorities shift to establishing how the business is classified […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
