Tesla staring down California dealer ad probe request

Months after the confusing announcement of Tesla's lease-like financing program, the electric vehicle maker could face an advertisement probe that has been requested by the California New Car Dealers Association, Automotive News reports, which claims that consumers are being mislead by advertised monthly payments that are lower than what most people would experience.

The ordeal can be traced back to April 2, when Tesla made an announcement specifying tiered monthly payments for the three versions of the Model S assuming a 66-month term. But then Tesla revised the numbers upward overnight because, it claimed, it meant to say it offered a 63-month finance term, not a 66-month term. The automaker also claimed that factoring in the "true cost of ownership" of a Model S compared to a conventional fuel-burning car could drive monthly costs to below $500.

In May, it added an available finance term of 72 months, which, factoring in only gasoline savings, the company said could lower monthly payments to $580. But the underlying issue at hand is that the means which can potentially lower monthly payments from $1,000+ dollars (depending on the model) to under $600 can't be realized by the majority of Americans, the CNCDA says.

Tesla provides an online calculator that does the payment math for you. It takes into account the $7,500 federal incentive and $2,500 California incentive (state incentives differ) for EVs, what your time is worth, how much time and money are saved away from the gas station, shortened commuting time with carpool lane access (in participating states), and even business tax benefits. But the "packed external incentives," as the dealer association calls them, don't apply to everybody. Most people can't realize monthly payments below $500 unless they have the right mix of true-cost-of-ownership deductions. CNCDA also claims that only 20-percent of Americans can claim the full $7,500 federal incentive, which is based on findings by the Congressional Budget Office, according to Automotive News.

Brian Maas, president of the dealer association, sees Tesla's advertisement strategy in this way: "It's misleading. If you checked every box on their true cost of ownership series of inquiries, they claim you can get a Model S for $114 a month, which is lower than the cheapest [new] car available in the United States, the Nissan Versa - which would cost you, with a lease deal, about $139 a month," Automotive News reports.

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Nevada now allowing motorcycles to run red lights legally

As of next Tuesday, October 1, motorcyclists, cyclists, moped and tri-wheel riders in Nevada will be legally allowed to run red lights under one condition: there is no other traffic around, and they have waited at the light through two red-light cycles. When light sensors under the road don't detect a two-wheeled vehicle it can leave a rider sitting a light until a car shows up, or the rider will need to dismount and press the "Walk" button to get the light to change. The law was passed in order to provide a more expedient way to deal with the situation.

Nevada isn't the first state to consider and pass such a law. In fact, it's about the tenth state to either have such a law on the books or to be considering it, since Illinois has done it, and so have Oklahoma, Wisconsin, Tennessee and Nebraska.

Unlike some of those other cases, the Nevada police don't appear to be against it but they have said it will be difficult to enforce the two red-light-cycle rule. You can watch the news segment from KSNV on the new law in the video below.

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UAW tactics called into question at VW's TN plant

The United Auto Workers is in hot water with some of the very workers it is trying to unionize at Volkswagen's Chattanooga assembly plant. According to The Tennessean, eight Volkswagen factory workers have filed complaints against the UAW with the National Labor Relations Board, claiming the union "misled or coerced" them into formally asking for union representation.

The UAW has instituted a major push at the Chattanooga plant to represent the 2,500 hourly laborers that build the VW Passat by using what's called a card-check process. The tactic is opposed by the National Right to Work Legal Defense foundation, the group representing the workers. The card-check process demands that a company recognize a union that obtains the signatures of more than half its workforce, according to The Tennessean. This tactic is in contrast to the more traditional route, which sees employees vote on union representation.

The workers filing the complaint claim that the UAW told them the cards merely called for a secret ballot, rather than an outright demand for union representation. Workers also allege that the UAW has made it overly difficult to reclaim their signed cards, some of which were signed so long ago that they have been rendered invalid. Although the cards can force a company's hand, federal law still allows the company to ask for a secret ballot before yielding to unionized workers.

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GM files patent for 7-speed DCT, is it headed for Corvette?

Although a report last year indicated that the seventh-gen Chevrolet Corvette could be getting an eight-speed automatic transmission, it looks like General Motors might have some other plans in mind. General Motors recently filed a patent with the US Patent and Trademark Office for a new seven-speed dual-clutch transmission, and CorvetteForum.com makes the obvious guess that this performance-enhancing gearbox could find its way a future version of Chevy's performance coupe.

The drawing above comes directly from the patent filing, and while the gearbox will almost certainly be used in more than just one model, it would be a welcomed replacement for the six-speed automatic currently found in the 2014 Corvette. The idea of a DCT in the already-impressive C7 Stingray definitely makes the rivalry between the Corvette and the Porsche 911 a little more intriguing.

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Consumer Reports joins lawsuit against DOT over backup cameras

Consumer Reports' Consumers Union has joined in a lawsuit filed by Advocates for Highway and Auto Safety, Kids and Cars, Greg Gulbransen, M.D., and Susan Auriemma against the US Department of Transportation, over the department's failure to implement a rule mandating backup cameras in new cars and trucks.

As part of 2008's Cameraon Gulbransen Kids Transportation Safety Act, the DOT was ordered, by law, to come up with rear-visibility standards for new vehicles. In 2010, the DOT proposed mandating backup cameras, but since that proposal, the effort has stalled, with the original 2011 deadline pushed back multiple times. The current due date for a ruling is now 2015. Greg Gulbransen, one of the plaintiffs, who ran over and killed his two-year-old son, Cameron, told Consumer Reports, "It's mindboggling that two more children like Cameron are killed every week, yet the administration is content to postpone doing anything about it. This isn't some technical abstraction, it's about actual people being injured and killed."

The suit seeks to force the DOT to issue an immediate ruling that can be implemented before the 2015 deadline, which according to Consumers Union, would prevent up to 95 to 112 deaths per year.

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DoJ fines Japanese parts firms $740M in massive automotive price-fixing scandal

Nine Japanese suppliers have pleaded guilty in US court over charges of price fixing in the automotive parts industry, resulting in the Department of Justice doling out a total of $740 million of fines, according to a report from Bloomberg. The scandal, which has resulted in General Motors, Ford, Toyota and Chrysler spending up to $5 billion on inflated parts and driving up prices on 25 million vehicles has sent the DoJ hustling into investigations. "The conduct this investigation uncovered involved more than a dozen separate conspiracies aimed at the U.S. economy," Attorney General Eric Holder (pictured above) said during yesterday's press conference.

As the investigation stands, the DoJ has issued $1.6 billion in fines against 20 companies and 21 individual executives, with 17 of the execs headed to prison. Deputy Assistant Attorney General Scott Hammond said, "The breadth of the conspiracies brought to light today are as egregious as they are pervasive. They involve more than a dozen separate conspiracies operating independently but all sharing in common that they targeted US automotive manufacturers."

Big-name suppliers indicted in the investigation include Mitsubishi Electric, Mitsubishi Heavy Industries, Hitachi Automotive and Mitsuba Corporation. A list of fines and other corporations named in the investigation is available at Bloomberg.

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