In 2015, there were 51 million automobiles recalled by their manufacturers. In an article in USA Today in January, 2016 by Nathan Bomey, he points out that a recall of 51 million plus vehicles in 900 separate recalls in 2015. These statistics was published by the National Highway Transportation Safety Administration, NHTSA. These recalls edged the previous record of recalls in 2014. The NHTSA announced a yearlong digital advertising campaign dubbed “safe care save lives” to encourage consumers to get their recalled cars fixed quickly. The new record, according to the article, followed a series of industry scandals including the General Motors ignition switch defect, The Volkswagen emissions cheating and Takata’s exploding air bags. The NHTSA has made major efforts in the last year to improve the process for identifying vehicle defects according to Rosekind from NHTSA. He also expressed concerns for potential and significant increase in roadway deaths in 2015. The number of deadly accidents rose in 2015 after hitting an all-time low of 32,675 death in 2014.
One of the most recalled vehicles was as a result of Volkswagen emissions scandal according to an article published in USA Today by Nathan Bomey on September 23, 2015. This initial article about the emissions scandal claimed it affected 11 million vehicles worldwide and early estimates indicated the recall would cost $7 billion. The emissions scandal qualifies as one of the most expensive automobile scandal. This scandal undermined Volkswagen’s diesel engineering although, Volkswagen’s transgression did not kill anyone, it has created distrust among consumers. Investors crushed Volkswagen’s stock driving shares down 20% and lead to the CEO of Volkswagen, Michael Horn’s resignation. Volkswagen brand sales fell 10% from September, 2015 through February, 2016.
In an article in USA Today Money on April 23, 2016 by Nathan Bomey, claimed the estimated cost of VW’s emission scandal had escalated to more than $18 billion more than double the amount Volkswagen estimated in September, 2015. Volkswagen had recorded a one-time charge of $18.2 billion in 2015 to cover the cost of the diesel scandal including “pending technical modifications and customer related issues”. Volkswagen swung from a 10.8 billion euro profit in 2014 (about $12.4 billion) to a 1.8 billion loss in 2015.
Finally, in an article on June 29, 2016 in Westfaironline.com by Aleesia Forni, Volkswagen has settled a case brought by New York State Attorney General Eric T. Schneiderman for $15 billion to settle consumer lawsuits. Volkswagen who owns Porsche & Audi will pay $115 million to New York State for environmental projects to improve New York’s air quality and $30 million to New York State’s general fund.
The settlement provides contingent on Court approval. Owners of more than 487,000 diesel vehicles that Volkswagen & Audi falsely marketed as compliant with Federal & State emission standards will be paid full pre-scandal fair market value for their vehicles in addition to a cash payment of $5,100 for each vehicle. If car owners choose to keep their vehicle and wait for Volkswagen & Audi to develop acceptable emission fixes, they will also receive a cash payment of at least $5,100. “The evidence reviewed so far concerning Volkswagen, Audi & Porsche points to a culture of corporate greed and conscious disregard for the rule of law and the rights of consumers” according to Attorney General Schneiderman.
If you or a loved one has been injured in a vehicle that has been recalled, contact the Law Firm of Dominick J. Robustelli & Associates, PLLC at (914) 288-0800 or at our website of WhitePlains-Injury-Lawyer.com or on our new web name of Robustelli Personal Injury Law NY.com