Lemon Law Blog

Throughout the year, we receive countless calls from folks looking for car buying advice.  Many figure that by calling 1-800 LEMON LAW prior to buying a car, they may be able to prevent problems “down the road” so to speak. For that reason, since 2001, we have teamed up consumer advocate Jack Gillis and the wonderful team at the Center for Auto Safety to provide the Car Complaint Index to consumers.  We feel that an educated consumer is an effective consumer. 

Yesterday, JD Power & Associates came out with their dependability rankings and it appears that Land Rover is lowest on the Power totem pole.  While the Car Complaint Index looks at specific models, JD Power looks at brand quality.  They rank their cars based on an average of car problems; how many problems are reported per 100 cars, as experienced by original owners of these cars after three years.  The industry average is 206 problems per 100 cars, roughly averaging 2 problems per car.

Here are the brands that fall below the industry average:  Audi 207, Mercedes Benz 215, Nissan 224, Pontiac 225, GMC 226, Mazda 228, Subaru 228, Chrysler 229, Dodge 230, Mini 233, Chevrolet 239, Hummer 241, Scion 243, Volvo 244, Saturn 250, Jeep 253, Volkswagen 253, Saab 254, Isuzu 274, Kia 278, Suzuki 302, and lastly Land Rover with 344 problems reported per 100 cars.  This is not good news for the SUV manufacturer, which was recently sold by Ford to an Indian company.

So, who’s on top?  Number one with a bullet for the 14th consecutive year is Lexus, followed by Mercury and Cadillac.

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As you can expect, we have successfully handled thousands upon thousands of GM lemon law cases through the years….Cadillacs, Buicks, Chevrolets, Corvettes, Pontiacs, Hummers, etc.  Founding Partner and Lemon Law Attorney Bob Silverman has taken charge of many of these cases, and he has always felt that, despite the fact the glitches occur, GM has constantly exhibited a strong commitment to quality and customer service.  We have also seen that many of our GM clients have illustrated tremendous brand loyalty, buying a brand new GM vehicle following their lemon law experience.  Thus, it is quite disheartening to hear that this once invinceable auto giant is suffering a tremendous amount of troubles and tribulations.

Bloomberg reports that the company has suffered a 16 percent decline in 2008 U.S. auto sales and the price of GM stocks is now at a 54-year low (Shares have tumbled 62% this year, the most among the 30 companies in the Dow Jones Indsutrial Average). However, despite continuous speculation that GM could file for bankruptcy in the next year, Chief Executive Officer Rick Wagoner says that the company has “no thoughts whatsoever” of bankruptcy.  Wagoner also says that Hummer is the only one of GM’s U.S. brands being studied for possible sale or shutdown. As gas prices continue to soar, the manufacturer will review the truck’s future and sales potential. He adds that the bankruptcy rumors have not resulted in any drop in sales, with GM sales falling less than 1 percent in the first three months of the year.

As a company, GM has not posted an annual increase since 2004, with no U.S. sales gain since 1999. Last year, they suffered an astounding $38.7 billion loss. Outside analysts say that in a worst case secnario, with sales continuing to decline and an inability to acquire much needed captial, GM might have to declare bankruptcy by the end of 2009 or beginning of 2010, but they put the odds of that happening at 25 percent.

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