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Toyota to Settle U.S. Truck Rust Lawsuit for up to $3.4 Billion, Approximately $15,000 Per Vehicle According to Reuters, Toyota Motor Corp has agreed to a settlement of up to $3.4 billion for a federal class action brought by U.S. owners of pickup trucks and SUVs whose frames could rust through, plaintiffs lawyers have said in court papers.
2008 Toyota Tacoma
The proposed settlement covers about 1.5 million Tacoma compact pickups, Tundra full-size pickups and Sequoia SUVs alleged to have received inadequate rust protection that could lead to corrosion serious enough to jeopardize their structural integrity, according to court papers. Attorneys for the plaintiffs, in court papers supporting the settlement, estimated the value of frame replacements at about $3.375 billion based on a cost of about $15,000 per vehicle and the inspections at about $90 million at $60 per vehicle. See Class Action, Page 66
CIC, I-CAR Continue to Work on Issues Related to Vehicle Scanning, Calibrations
issue came up: What happens when you do a pre-repair scan and you unScanning of vehicles for diagnostic cover something that’s not related to trouble codes as part of the collision the loss,” committee chairman Jack repair process continued to Rozint said. “It could be be a key topic at meetings something serious, related held in conjunction with to a safety system or some SEMA in Las Vegas in Nocritical functions of the vevember. A Collision Industry hicle. You talk to the vehicle Conference (CIC) committee owner about it, saying that examining some of the issues it’s not related to the accithe industry needs to address dent but it needs to be fixed. Jason Bartanen, related to scanning, for ex- director of Industry But the consumer says, ‘I ample, reported in Las Vegas Technical Relations barely have the money for for I-CAR that it continues to identify as my deductible. I just need many questions as answers. you to fix the collision damage.’ “On the last [conference] call, the See Vehicle Scanning, Page 24 by John Yoswick
VOL. 34 ISSUE 12 DECEMBER 2016
San Mateo, CA, Considers Auto Shop Regulations: Council Seeks Data on Parking, Safety by Samantha Weigel, San Mateo Daily Journal
Years after first initiating enforcement against several San Mateo auto repair shops for code violations, the City Council indicated it’s willing to reconsider the rules as a way to avoid potentially putting some out of business. Unpermitted vehicle lifts, worker safety, parking impacts and neighborhood concerns drove the council’s conversation on the night of October 17 as it considered the service industry’s place in the city. The issue arose in 2012 when reported parking complaints eventually led the city to discover other code violations at several auto repair shops. Unpermitted vehicle lifts and repair work illegally being done outdoors drove the city to initiate enforcement
proceedings, which it ultimately put on hold until recently. The dispute also led to an ongoing lawsuit between the city and one of the shop owners. The city recently began considering potential next steps, such as whether to change the rules or begin enforcement. During the October 17 study session, the council noted it might be willing to reconsider existing codes to keep the service industry thriving; but safety and neighborhood concerns remain top priorities. “I do think the automotive industry and repair shops do play a very vital function in our city; they do provide very meaningful jobs and they do provide very meaningful services,” Deputy Mayor David Lim said, according to a live video of the meeting. “I’m not afraid of regulating a busiSee San Mateo Council, Page 12
You Charge How Much for Labor? Figure Out Your Costs First!
finishes, it will be critical for collision repairers to invest in their facilities, With vehicle construction and tech- equipment, and training to stay curnology evolving at the most rapid rent and capable to properly repair vepace in history within the automotive hicles. industry, what steps will auto body Since this will most likely be a significant additional cost of doing business, he encouraged shops to take the time to build a pricing model that allows companies to accurately identify these additional costs. The purpose would be to quantify the actual amounts the company will need to seek to get reimbursed for this significant new and ongoing investment Tim Ronak, Senior Services Consultant with AkzoNobel – of capital. Vehicle Refinishes “Once you know the amount shops across the country need to take costs have increased, you can use this to remain successful? According to information to calculate a suitable adTim Ronak, Senior Services Con- justment or increase in prices and will sultant with AkzoNobel–Vehicle ReSee Charge How Much?, Page 20 by Stacey Phillips
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