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]

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 and potentially unreliable source, a fact which led many to dismiss them as crankery. But as more reports of suspension failure in Teslas have come in, Daily Kanban has investigated the matter and can now report on this deeply troubling issue.

[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 Europe as they are in the U.S. – until you read the fine print. According to EU rules, defeat devices are allowed “if the need for the device is justified in terms of protecting the engine against damage or accident and for safe operation of the vehicle.” Let’s see how that works.

More in Forbes

Outselling Toyota, Volkswagen World’s Largest Automaker In The First 4 Months. Now, Let’s See

960x0VWsales

Announcing that Volkswagen AG’s sales are drowning in the wake of dieselgate, going under along with the company’s sullied reputation, swaths of the world media succumbed to a serious contagion of confirmation bias. Quite the opposite is true: Volkswagen stands every chance to fulfill its biggest corporation-wide dream. VW might finish the year as World’s Largest Automaker.

More in Forbes

Why Carmakers Suddenly Invest Into Taxi Apps And Uber, And It’s Not What People Tell You

960x0taxi

All in one week, major carmakers took equity positions in companies that supposedly will put them out of business. Toyota invested in Uber, Volkswagen bought shares of Gett, BMW became a shareholder of carpool-platform scoop. The feeding frenzy was kicked off months ago by GM, which became a shareholder of ride-hailing service Lyft. Of course, this was immediately hailed as the beginning of the end of the traditional auto industry. Vanity Fair called it an “if you can’t beat them, invest millions of dollars in them” move. The New York Times thinks that “automakers have become increasingly concerned about those technologies, and their potential to help people travel easily and cheaply without owning a car — or even without knowing how to drive.” Have we finally reached the eve of disruption?

More in Forbes

Volkswagen Strategy 2025, And The Secret Master Plan For An Apple Takeover

960x0VW23

Whenever a new CEO takes the helm at Volkswagen AG, he announces a brand-new strategy. Last week, it was CEO Matthias Müller’s turn to proclaim his new strategy at a mass meeting of Volkswagen managers, flown in from all four corners of the Wolfsburg empire. The objective of the meeting was, as Germany’s BILD wrote, to “close the ranks” of Volkswagen’s officer corps, and to swear them in on the new direction before the new strategy is formally announced in a few months. The plan may require a little more work for everybody to sign up. Volkswagen’s leadership appears to be divided. Some dream the new direction will lead to a take-over of Apple. Some, especially those encumbered with experience, think the new plan is to a large parts uninspired. The few inspired parts are regarded as pure lunacy by more than a few managers that were in the meeting.

More in Forbes

Insiders: Opel Likely To Get Away With Dieselgate Cheating, Fiat Won’t

960x0fiat

Both GM’s Opel and  Fiat Chrysler have become the targets of serious dieselgate accusations. The companies have been in the media for months. Last week, the matter became official, and both carmakers were held accountable by German regulators. Opel met with the Germans, and most likely will get away with a stern finger-wagging, industry experts agree. Fiat stood up officials in Berlin, and the book is being thrown at the Italian maker.

More in Forbes