Tesla Scares Customers With Worthless NDAs, The Daily Kanban Talks To Lawyers

Waves of cancellations caused Tesla sales crash in China

Tesla Motors prides itself of being totally different from the legacy carmakers. Indeed, it is. Established automakers have long learned that publicly blaming the customer is corporate suicide. In their own interest, established automakers rather swallow their considerable pride before publicly questioning the honor and professionalism of a journalist.  Established automakers have been taught that obstructing the work of the NHTSA amounts to grave-shoveling. Unlike every other automaker, Tesla blames its customers, attacks journalists, and implicitly calls its regulator NHTSA a bunch of liars, all in one public corporate blog post.  As Lou Whiteman just wrote, if Tesla ever wants to become one of the big boys, then Tesla needs to grow up.

On Wednesday, my partner Ed Niedermeyer drew attention to a highly questionable practice by electric automaker Tesla Motors. Tesla appears to demand “an NDA from owners in exchange for satisfaction regarding its vehicle defects.” An NDA is a Non Disclosure Agreement, an agreement to remain silent. While NDAs are quite common in Silicon Valley’s software trade, they are unheard-of in the auto-business, especially when it comes to warranty and make-good work on cars. The National Highway Traffic Safety Administration (NHTSA) relies on defect reports by customers. Putting customers under gag orders would run counter to the agency’s intentions. After our story was published, the NHTSA issued a strongly-worded statement:

 “NHTSA learned of Tesla’s troublesome nondisclosure agreement last month. The agency immediately informed Tesla that any language implying that consumers should not contact the agency regarding safety concerns is unacceptable, and NHTSA expects Tesla to eliminate any such language.”

The agency’s actions created headlines all over the world.  They also prompted Tesla Motors to write a blog post. That post embodies everything a legacy automaker would be loath to do. [Continue Reading]

Friday morning car news roundup, June 10, 2016

Today is Friday

Tesla Special  Edition

$TSLA denies Model S suspension defects, chides journalist in blog post @verge
$TSLA Denies Safety Problems With Model S Suspensions @ABC
$TSLA Defends Safety Of Its Cars And Denies Trying To Silence Owners About Problems @Forbes
$TSLA fires back at reports of safety flaws @Wcvb
$TSLA Defends Car Suspension Systems, Nondisclosure Statements @WSJ
$TSLA rebuffs safety-issue claims, calling them ‘preposterous’ @MarketWatch

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Thursday morning car news roundup, June 9, 2016

Today is Thursday

Top News:

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Toyota Employees To Work Mostly From Home. Or Not

960x0work

Japanese salary-men and -women are said to spend inordinately long hours at the office, and this impression is amplified by 10 pm rush-hour traffic on Tokyo’s vast subway and train network. If press reports are to be believed, this could come to an end, as Japan’s largest company, trend-setting Toyota, will allow its personnel to work from home.

More in Forbes

Tesla Suspension Breakage: It’s Not The Crime, It’s The Coverup

TeslaBallJoint

For several months now, reports have circulated in comment sections and forum threads about a possible defect in Tesla's vehicles that may cause suspension control arms to break. Many of those reports appeared to come from a single, highly-motivated … [Continue reading]

Wednesday morning car news roundup, June 8, 2016

Today is Wednesday

Top News: Suzuki CEO to resign as top execs take pay and bonus cuts - Just-auto: Suzuki has announced a management reshuffle and top-level pay cuts following its fuel economy testing scandal. Chevy escalates Silverado advertising battle with … [Continue reading]

GM’s Opel Unfazed By New Dieselgate Revelations While Brussels Ponders “Amnesty”

960x0opel

Today, the EU Council of Ministers is meeting in Brussels. On the agenda: To make Europe’s law against defeat devices more toothless than it already is. At first glance, defeat devices that switch off exhaust treatment seem to be as verboten in … [Continue reading]

Tuesday morning car news roundup, June 7, 2016

Today is Tuesday

Top News:   Lincoln marketing chief to leave brand for Ford Europe - Detroitnews: who helped launch the popular Matthew McConaughey ad campaign - will move to become vice president of marketing for Ford of Europe,... Nissan says Datsun … [Continue reading]