40 YEARS
WE ST EDITIO N
AUTOBODYNEWS.COM
AK / CA / HI / ID / MT / NV / OR / WA / WY
GM’s Cruise Secures First Permit to Charge for Self-Driving Rides in California by Joey Klender, Teslarati
General Motors’ Cruise became the first autonomous driving program to secure a permit to charge people to ride in a self-driving car after numerous objections from city officials in San Francisco. Cruise won the approval with a unanimous 4-0 vote by the California Public Utilities Commission late June 2, a report from Reuters said. San Francisco is a hotbed for
self-driving test vehicle programs, but Cruise became the first to secure the permit. Cruise will launch paid services within the next few weeks, it said. Its fleet will be comprised of 30 driverless Chevrolet Bolt vehicles. Cruise autonomous vehicles use 40+ sensors to provide the cars with a 360-degree view. It can also map the location of surrounding objects within centimeters, the company said on See GM’s Cruise, Page 17
New-Vehicle Prices Flirt with Record High in May New-vehicle average transaction prices (ATPs) increased to $47,148 in May, according to new data released by Kelley Blue Book, a Cox Automotive company. Prices rose 1% ($472) month over month and remain elevated compared to one year ago, up 13.5% ($5,613) from May 2021. The average price paid for a new vehicle in the U.S. in May was the second-highest on record, behind only December 2021, when ATPs reached $47,202. New-vehicle inventory days’ supply stayed in the mid-30s in May—holding steady since
mid-January—while customer demand remained stable. These conditions enabled most dealers to continue selling inventory at or above the manufacturer’s suggested retail price (MSRP). The average price paid for
a new vehicle has been “over sticker” throughout 2022. In May, new vehicles from Honda, Land Rover and Mercedes-Benz See New-Vehicle Prices, Page 14
Vol. 40 / Issue 7 / July 2022
California Lawmakers Announce Budget Agreement, $10 Billion Taxpayer Rebate by Madison Hirneisen, The Center Square
California lawmakers want to send $10 billion in relief to California taxpayers and business owners using a portion of the state’s record budget, legislative leaders announced as part of their budget agreement June 1. The State Assembly and Senate leaders unveiled their proposed 2022-2023 state budget framework, coming just a few weeks after Gov. Gavin Newsom announced his revised budget in May. The governor and lawmakers have until June 15 to agree on a budget framework, which
would ultimately take effect on July 1. As Californians grapple with record-high gas prices and other cost increases tied to inflation, both Newsom and lawmakers have presented options to return money to taxpayers. The way they want to do it, however, differs significantly. Legislative leaders want to use $8 billion for a “Better for Families Relief Package,” which will provide $200 per taxpayer and dependent for joint filers making up to $250,000 and single filers making up See Budget Agreement, Page 12
Insurers Too Late for Subrogation in Auto Parts Price-Fixing Case, Court Rules by Jim Sams, Insurance Journal
Insurers waited too long to intervene in anti-trust litigation that brought settlements requiring dozens of auto parts manufacturers to pay a total of $1.2 billion to resolve price-fixing allegations, a panel of the U.S. 6th Circuit Court of Appeal ruled June 1. In a published decision, the appellate panel affirmed a U.S. District Court ruling that denied a motion to intervene filed by Financial Recovery Services on behalf of eight insurers that sought “equitable subrogation” for the payments it made to insureds for the total loss of their vehicles. FRS did not seek to intervene in the litigation until long after settlement negotiations were concluded and final-approval hearings were held in 41 coordinated cases. The 6th Circuit panel said in its opinion that allowing intervention would require the court to revisit issues that were settled while FRS “watched from the sidelines.” “Allowing FRS to claim subro-
gation rights after settlement would uproot earlier efforts to define classes, expend considerable resources to amend allocation plans and increase costs associated with the claims-administration process, thereby reducing the amount of settlement proceeds available,” the panel said in an opinion written by Justice Karen Nelson Moore. Attorneys representing consumers in 2012 filed anti-trust lawsuits against dozens of auto manufacturers. The Department of Justice launched an investigation into price-fixing allegations, resulting in guilty pleas by 26 manufacturers that paid millions in fines. The civil lawsuits were consolidated into a single case assigned to the U.S. District Court for Eastern Michigan in Detroit. The court approved four separate settlement agreements between the plaintiffs and 73 of the defendants from 2016 through November 2020. FRS, a third-party administrator for auto insurers, did not get See Price-Fixing Case, Page 17
PERMIT #288 ANAHEIM, CA
PAID
Change Service Requested P.O. BOX 1516, CARLSBAD, CA 92018
PRESORTED STANDARD U.S. POSTAGE
