Things were just starting to look up for Chrysler's upcoming powertrains. The Phoenix V6 will hopefully return competitiveness to the engine bays of Pentastar vehicles, and a dual-clutch automated manual transmission joint venture with Getrag was nearly off the ground before both companies started shoving lawyers at each other. A joint venture plant has been built in Indiana, but the deal fell apart over money for tooling. Chrysler's shot a lawsuit at Getrag, alleging that the transmission specialist hasn't ponied up for tooling and equipment to build the gearboxes. For its part, Getrag contends that it had backing from German banks provided that Chrysler put the $300 million needed into escrow, and is prepared to sue Chrysler to get reimbursed for its investment plus damages. If Getrag and Chrysler can't come to terms, it doesn't look good for the future of Chrysler's clever gearbox which would offer increased performance and fuel economy.
Chrysler has managed to stay out of the doom and gloom news for a few weeks now, which goes to show that going private can have its benefits. But things couldn't stay quiet forever, and as if the company needed something else to deal with, it's now in row with German transmission supplier Getrag over a potentially failed joint venture. Chrysler uses Getrag double-clutch transmissions (DCT) in the Euro-version Dodge Journey (seen above), and is planning on adding the Euro Avenger and Sebring to the DCT lineup. Getrag signed an agreement with Chrysler to build a factory in the U.S. that would also supply Chrylser's American products with DCTs, and in return for Chrylser agreeing to get such transmissions only from Getrag, Getrag would get $300 million to finance and tool the factory. According to Getrag, it only intended to borrow the funds if said funds were guaranteed by the German government. According to the German government, it would only guarantee the $300 million loan if Chrysler put that same amount in an escrow account to guarantee repayment. According to Chrysler, it had no idea of such an arrangement, and Getrag never should have signed the agreement if it meant Chrysler needed to back Getrag's loan with its own cash. And that's how court cases are made. While the factory remains in limbo, Chrysler needs to find another supplier for DCTs for its American cars, and do it in a hurry.
Engineer Bob Kearns had been granted a patent for a design of intermittent windshield wipers in 1967, two years before Ford introduced them in production. Unfortunately for Kearns, Ford had "developed" its own system rather than licensing Kearns' design. Needless to say, litigation ensued and it took until 1995 for the U.S. Supreme Court to finally rule against Ford and Chrysler and award Kearns $30 million. That story has now been turned into a major motion picture being released this week called Flash of Genius, and Ford wants you to know that the facts of the matter are much less dramatic than what the movie portrays. While reminding people that the facts have been dramatized, Ford also mentions that a jury ruled it did not "willfully" infringe on Kearns' patent. That's not to say Ford and Chrysler didn't infringe – juries ruled that they did. It just wasn't "willful." Did Kearns ultimately win? That's hard to say considering how his life turned out, but he was vindicated. On the other hand, many owners of older English cars would argue that Joseph Lucas invented the intermittent windshield wiper, although again not willfully.
California recently banned talking on cellphones, and then followed up by making texting illegal, while driving. For a moment there, it was looking like all you were going to be able to do behind the wheel in California was, you know, drive. But thanks to the dedication of Governor Schwarzenegger, individual freedoms have not been extinguished. Promising to only sign bills that are "the highest priority for California," Arnie vetoed a bill that would ban driving with dogs in your lap. While we understand the spirit of the veto -- California does have much bigger issues to deal with than lapdogs -- we do sometimes wonder why a 40-pound kid has to be in a child seat, but a 40-pound, unpredictable animal can take a nap between you and the steering wheel.
ROUSH announced the Stage3 Blackjack Mustang back in 2006, and in 2007 said it would make 100 of them. New Yorker Drew Conner bought Blackjack number two, spending almost $59,000 for his slice of limited edition Mustang pie. Only the glossy black 'Stang wasn't so limited after all: according to a lawsuit Connor filed in New York, Ford and ROUSH made another 100 Blackjacks in 2008.
Both Ford and ROUSH are named in the suit, and Connor has been joined by "at least 100" other Blackjack buyers. The plaintiffs' complaint is, of course, that the Blackjack's "value from scarcity and as collectors' items were and are dramatically less than the buyers had been led to believe their value would be."
But to make everything all better, the plaintiffs are asking for class action status, a jury trial, and... ahem... more than $12 million. That sounds like a lot, but say there were just 100 plaintiffs, that would be $120,000 per person, and would get them their money back plus a 100-percent premium for being misled... which might sound more reasonable. Or not. For the moment, both Ford and ROUSH have no comment on the litigation.
Unwilling to recognize when genug is enough, Max Mosley is forging ahead with more lawsuits. After being awarded a £60,000 judgment (plus an additional estimated £1 million in expenses) against News of the World, the tabloid that broke the story of the FIA president's alleged sexual activities, Mosley is now launching a second lawsuit against the publishers. Whereas the previous lawsuit was on the grounds of invasion of privacy, the second action is for libel.
In addition to the follow-up suit against News of the World, Mosley will also be pursuing compensatory damages from German newspaper Bild, which Mosley claims repeated the story unchecked. The suit against Bild petitions for one million euros, plus an addition half-million from its online edition. The prostitute, known only as Woman E, who originally claimed the episode had a Nazi theme, has since recanted and revised her statement to the exclusion of any such connection.
Remember the good old days when a prominent chief executive would have disappeared into obscurity after having been exposed by the newspapers? Well those good old days are gone, and Max Mosley is happy for it.
It's been a long and hard road for Max Mosley, but the embattled FIA president seems well suited for the ordeal. Mosley was caught on film partaking in what was described as a Nazi-themed S&M orgy with several prostitutes. He then survived a vote of no confidence in his leadership in the motorsport governing body, and launched a lawsuit against the News of the World, the British tabloid that broke the story. The judge returned the verdict from that lawsuit today, awarding Mosley £60,000 in exemplary damages, plus an additional estimated £1 million in expenses.
Mosley's case hinged on the right to privacy, and upon receiving the judgment (so to speak), the prototypical auto-erotic figure noted that he hoped the ruling would serve as a deterrent for other publications from pursuing "this type of invasive and salacious journalism". The moneys awarded by the court won't go into Mosley's pocket, as they're earmarked towards the road safety and environmental work undertaken by the FIA Foundation.
Their plate may be filled with churning out Tesla Roadsters and developing the Model S sedan, but Tesla Motors can't seem to get a break from the lawsuits. First there was the tiff with transmission supplier Magna, followed by potential development partner Fisker, and now Tesla is facing a class action (it's not a class action lawsuit until a judge deems it so) lawsuit from former Director of Public Relations, David Vespremi. Vespremi ended up on the cutting room floor during the tornado that swept through the company ranks at the end of 2007 was let go prior to the layoffs in January of this year. Vespremi is trying to connect his firing to the layoffs, but according to Tesla's Darryl Siry, that's not the case -- his termination was a separate matter. The details of the lawsuit allege that Tesla Motors did not practice good faith or fair dealing, violated labor codes with unpaid wages and waiting periods, and utilized unfair business practices. The document also listed libel and slander due to the harsh words spoken from the mouths of executives to the media when referencing the former employees.
California joined thirty-two other states today when a new law banning unlimited cellphone use in automobiles went into effect at midnight. The new rules prohibit drivers from holding cellphones to their ears while talking, yet they are still allowed to dial the phone to place the call... and freely text message. While the law won't likely have a huge effect on many adult drivers who have become accustomed to using speaker-phones and hands-free devices such as Bluetooth-enabled earpieces (as if that really helps), it is the young drivers who face tough new rules. The law in the Golden State now bans drivers under the age of 18 from using any kind of mobile device while driving. All drivers face the same slap-on-the-wrist if caught. The first offense is only $20, with the fee bumped to $50 for additional convictions. Of course, that number will rapidly increase if other infractions or penalties are applied.
A few months back, Tesla Motors sued Fisker Automotive for allegedly stealing information related to the production of its upcoming plug-in electric sedan named Whitestar and using it to develop its series-hybird, the Karma. Yesterday, a judge ruled in favor of Fisker Automotive by allowing the case to go into arbitration outside the courtroom, which was apparently part of the original agreement between Tesla and Henrik Fisker in the first place. It appears that Tesla went outside that original agreement by bringing forth its lawsuit in the first place, though Tesla may have considered that contract void as the original lawsuit alleged that it was signed merely to gain access to confidential information.
Although the arbitration is to be handled outside of court, the judge has scheduled a management conference this August, perhaps to be sure that negotiations are moving along. This is good news for Fisker, which is currently working to get its Karma PHEV sedan to market by the fourth-quarter of 2009.
