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VT Auto Shop Owner Scores Victory in Campaign Against Short-Pay by Insurers by Alan J. Keays, VTDigger.org
The Vermont Supreme Court has sided with a body shop in its latest legal challenge to a national insurance company over claims the firm failed to pay enough to cover needed repairs to vehicles that had been in collisions. The case has been working its way through the state’s legal system for about four years, starting in 2015 when Parker’s Classic Auto Works of Rutland brought suit against Nationwide Mutual Insurance Co., which is based in Ohio.
Mike Parker, the repair shop’s owner, said Monday he recently got a call from his attorney, Robert McClallen of Rutland, letting him know of the high court’s ruling. “I was like finally, ‘Hallelujah,’” Parker said. The suit against Nationwide was brought by Parker’s on behalf of consumers in instances where the insurer refused to pay the full amount of the repairs the shop made to vehicles. It’s a practice known as short-pay. The Nationwide lawsuit is part of an ongoing campaign by Parker’s See Short-Pay By Insurers, Page 12
SCRS Event Discussion on Insurance Regulation, Workforce Development by John Yoswick
Body shop associations and automakers increased efforts this year to get state legislation that would mandate
the use of OEM repair procedures for collision repair claims. Since these efforts, insurance regulators in some states have shared written statements
relative to any such obligation on insurers. Insurance regulatory agencies in about half of all states have responded to a letter the Society of Collision Repair Specialists (SCRS) sent out last year asking, among other things, if anything in their state “holds insurers and insurance policies sold in your state accountable to recognize manufacturer documented procedures as a basis for settling claims.” During a SCRS event earlier this year, the association’s Aaron Schulenburg said the written responses See SCRS Event Discussion, Page 34
AUTOBODYNEWS.COM
Vol. 8 / Issue 11 / August 2019
Uncertain Times for U.S. Auto Industry by Dave Leggett, just-auto
A new Edmunds report says 2019 has been a year of contrasts for automakers as they struggle to find a new normal amid rising interest rates, waning demand, dramatic growth in the used market and uncertain government policies. “Automakers are fighting a war on multiple fronts right now: Old cars are piling up on dealer lots, a glut of affordable off-lease vehicles are luring shoppers into the used market and even with the Fed anticipated to lower rates in July, higher interest rates are here to stay,” said Jeremy Acevedo, Edmunds’ manager of industry analysis. “Strong economic indicators such as consumer confidence and low unemployment are keeping sales at historically elevated levels, but automakers have also been rely-
ing too heavily on fleet sales to keep these numbers up which isn’t a sustainable model.” According to Edmunds data, new vehicle sales are down 2.4% year-over-year through May and Edmunds analysts maintain their forecast that 16.9 million new vehicles will be sold in 2019. In addition to a deeper dive into sales figures, the Midyear Report also reveals: A strong economy is propping up what could be an even weaker auto market. Unemployment is at 3.6% - the lowest it’s been since 1969. Consumer sentiment is at its highest level of 2019. Elevated inventory levels are setting the stage for attractive deals this summer. Even though inventory dipped below 4 million units in May, analysts say this is still too high See Uncertain Times, Page 3
FCA Faces Wrangler “Death Wobble” Class-Action Case by David A. Wood, CarComplaints.com
A Jeep Wrangler “death wobble” lawsuit alleges 2015-2018 SUVs are equipped with defective steering dampers and components that cause violent front-end vibrations. According to the lawsuit, the “death wobble” is the “seemingly uncontrollable side-to-side shaking of a Jeep’s front-end steering components and—by extension—its steering wheel.” The lawsuit doesn’t say the vibrations cause front-end failure, but “simulates sudden frontend failure.” While FCA and other automakers say this can be a common occurrence with solid front axles in combination with worn or damaged components, the lawsuit alleges the Wrangler axles and damping systems were defectively designed from
the beginning. Attorneys who filed the proposed class-action lawsuit want Fiat Chrysler (FCA) to buy back all 2015-2018 Jeep Wranglers in the U.S. and give drivers compensation for an alleged loss of value and depreciation of the SUVs. Attorneys also say FCA should reimburse owners for expenses paid to third parties for work performed related to the vibrations. In addition, the plaintiff wants the automaker to give customers temporary replacement vehicles and Chrysler should pay damages for allegedly putting members of the public at risk. FCA says the vibrations are easily corrected by simply slowing down and all functions of the vehicles remain active. In addition, although Wrangler drivers call it a See Death Wobble, Page 22
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