Archive for the ‘Lawsuits/Legal’ Category

GM, Ford Smacked with Harassment Lawsuits

Employees suffer racial and sexual harassment at plants.

by on Jan.18, 2019

Several employees have reported incidents of racial intimidation at GM's powertrain plant in Toledo, Ohio.

The U.S. automotive assembly plant is the last bastion of approved racial and sexual discrimination if recent events, i.e. lawsuits, are to be believed.

In the past two days, lawsuits filed against General Motors and Ford for racial and sexual discrimination have brought to light behavior thought by many to have been banished to the history books.

Subscribe Now!

GM’s powertrain plant in Toledo, Ohio, was allegedly the scene of racial discrimination and intimidation on a daily basis, according to the contents of lawsuits and complaints filed with state agencies in Ohio. Two supervisors at the facility were taunted, disrespected and their complaints ignored by management, including the discovery of a noose in an area where one of the men worked. (more…)

Nissan Shake-Up Claims First Victim: Former US CEO Muñoz

Is this the start of a “bloodbath” that will purge non-Japanese senior managers?

by on Jan.11, 2019

Jose Muñoz, Nissan's chief performance officer, parted ways with the automaker today.

José Muñoz, a widely respected Nissan executive and a protégé of ousted Chairman Carlos Ghosn, is leaving the automaker just days after he reportedly took a leave of absence to deal with “special tasks.”

Muñoz, who had gone to Japan this week, was said to have resigned, according to Nissan, but several observers questioned whether his departure marks the beginning of a purge of senior managers linked to Ghosn. The 64-year-old executive was arrested on Nov. 19, and accused of a number of financial misdeeds, prosecutors on Friday indicting him for the second time.

Breaking News!

“José Muñoz has elected to resign from Nissan Motor Company, effective immediately,” Nissan said in a statement e-mailed to TheDetroitBureau.com. (more…)

Ghosn Indicted Again

This time Ghosn faces charges of “breach of trust,” as colleague Greg Kelly and Nissan also indicted.

by on Jan.11, 2019

Former Nissan CEO Carlos Ghosn, shown here in January 2018, reportedly has lost over 20 pounds while in detention.

Nissan’s former Chairman Carlos Ghosn has been indicted again, this time on charged of breach of trust, a development that could again delay his release on bail.

The once-powerful executive has been held in solitary confinement in the Tokyo Detention Center since his arrest on November 19 and already faces charges related to claims he underreported his income by about $44 million between 2011 and 2015. Prosecutors are reportedly looking at other potential charges that arose from a months-long investigation conducted by Nissan.

Breaking News!

Ghosn, who claimed innocence during his first court hearing earlier this week, wasn’t the only one to face a legal setback on Friday. Prosecutors also laid out charges against the 64-year-old executive’s former colleague Greg Kelly, as well as Nissan itself.

(more…)

Fiat Chrysler Settles Emissions Cheating Case for $800 Million

Deal resolves cases with federal, state officials, vehicle owners.

by on Jan.10, 2019

Fiat Chrysler agreed to an $800 million settlement to resolve charges of cheating on emissions tests.

Fiat Chrysler reached an $800 million settlement with federal and state government agencies as well making good with the owners of vehicles affected by alleged cheating on emissions tests.

The automaker agreed on Thursday to a deal with the Justice Department and the Environmental Protection Agency, to pay nearly $300 million to the U.S. government and $19 million to California for installing a cheat device to beat emissions tests.

Subscribe Now!

It’ll pay another $280 million to recall and repair the more than 104,000 out-of-compliance Jeep SUVs and Ram pickup trucks, including payouts to owners of the vehicles of about $2,800 each. (more…)

Ghosn Pleads Not Guilty in First Court Appearance

“I have been wrongly accused,” says former Nissan chief looking gaunt but defiant.

by on Jan.08, 2019

Nissan Chairman Carlos Ghosn shown during an appearance at the Paris Motor Show in October.

Former Nissan Chairman Carlos Ghosn made his first public appearance since being unexpectedly arrested on financial corruption allegations Tuesday, telling a Tokyo court that he has been “wrongly accused.”

Ghosn has been held in solitary confinement in the Tokyo Detention Center since shortly after his corporate jet arrived at Haneda Airport on November 19th in a case that, while centered around claims of financial wrongdoing has also raised concerns about whether his arrest was influenced by Nissan’s desire to shake off the control of its alliance partner Renault. The French affiliate rescued the Japanese automaker from bankruptcy 20 years ago but has since dominated their partnership.

Breaking News!

“I have been wrongly accused and unfairly detained based on meritless and unsubstantiated accusations,” the 64-year-old Ghosn said while wearing handcuffs tied to a rope around his waist. “I believe strongly that in all of my efforts on behalf of the company, I have acted honorably, legally and with the knowledge and approval of the appropriate executives inside the company.”

(more…)

Ousted Nissan Boss Ghosn Ready to Tell His Story in Court

“I think everyone will be rather surprised,” son says.

by on Jan.07, 2019

Carlos Ghosn, former CEO of the Renault-Nissan-Mitsubishi Alliance, will get his day in court tomorrow.

Seven weeks after his unexpected arrest, former Nissan CEO Carlos Ghosn will finally get a chance, albeit a brief one, to lay out his side of the story when he gets to address a court in Tokyo on Tuesday.

Having so far refused to sign a confession demanded by Japanese prosecutors, Ghosn is expected to assert his innocence and deny allegations of various financial wrongdoings during a 10-minute session. It will be the first time since the 64-year-old executive was arrested after landing at Tokyo’s Haneda Airport on Nov. 19, that he has been seen in public. He has since been held in solitary confinement in the Tokyo Detention Center.

News Now!

“For the first time, he can talk about his version of the allegations against him,” 24-year-old son Anthony Ghosn said in the interview with the French newspaper Le Journal du Dimanche on Sunday. “I think everyone will be rather surprised hearing his version of the story. Until now, we’ve only heard the accusers.” (more…)

Ford Recalling Nearly 1 Million Vehicles with Faulty Takata Airbags

Automaker recalls seven different models for airbag fix.

by on Jan.04, 2019

The 2010 Ford Fusion is part of the automaker's most recent recall to fix faulty Takata airbags.

The largest automotive recall in history continues as Ford recalls more than 953,000 vehicles worldwide to replace Takata passenger airbag inflators that may overinflate, explode and hurl shrapnel into the car’s cabin.

The action includes 782,000 vehicles in the U.S., including the 2010 Ford Edge and Lincoln MKX, the 2010 and 2011 Ford Ranger, the 2010 to 2012 Ford Fusion and Lincoln MKZ, the 2010 and 2011 Mercury Milan, and the 2010 to 2014 Ford Mustang.

Product News!

Ford says it doesn’t know of any injuries in vehicles included in this recall. Dealers will replace the inflators, and some of the recalls may be limited to specific geographic regions of the U.S. (more…)

UAW Sues General Motors Over Use of Temporary Hourly Workers

Union says there are 1,000 laid-off workers that should get the jobs.

by on Jan.03, 2019

GM is being sued by the UAW for using temporary workers at the plant instead of laid-off employees.

If there wasn’t tension between the UAW and General Motors due to the company’s restructuring plans to close five plants, the new lawsuit filed by the union over the use of temporary workers should ensure there is now.

The United Auto Workers said on Thursday it was suing GM about labor contract violations due to the alleged use of temporary workers at an Indiana assembly plant.

Subscribe Now!

The lawsuit was filed on Wednesday in U.S. District Court in Ohio. At the heart of the matter, according to the union, is the fact that GM used temporary workers at the plant when there are 1,000 laid-off hourly employees with rights to transfer to plants with openings — specifically the Fort Wayne, Indiana plant. (more…)

Japanese Court Extends Ghosn’s Jail Time into New Year

Former Nissan Chief's custody extended until Jan. 11.

by on Dec.31, 2018

Carlos Ghosn has been ousted at Nissan and Mitsubishi, but Renault has only replaced him temporarily.

Former Nissan Chairman Carlos Ghosn is going to ring in 2019 in the same way he ended 2018: behind bars, after the Tokyo District Court extended his detention 10 days until Jan. 11.

The 64-year-old Ghosn who, according to prosecutors, committed a number of financial crimes. These initially included under-reporting about $36 million in revenue through 2015, using company funds to acquire homes in Lebanon and Brazil. He’s been in custody since Nov. 19.

Global News!

Ghosn’s had additional charges filed against him since then with prosecutors alleging he shifted personal trades to Nissan to cover losses of 1.85 billion yen, or $16.6 million. They have also indicated they may bring charges for concealing income since 2015. (more…)

Nissan Exec Kelly Released; Ghosn Still in Tokyo Detention

Late-night release comes five weeks after arrest.

by on Dec.26, 2018

Greg Kelly's wife told Japanese TV that she believes her husband is a victim of a Nissan power grab.

Greg Kelly, an ousted Nissan Motor Co. executive caught up in a financial corruption scandal, has been released on bail after being held for more than a month in the Tokyo Detention Center.

Kelly was arrested Nov. 19, immediately after arriving in Japan on a corporate jet. He accompanied Carlos Ghosn, then Nissan’s chairman, as well as the head of the Renault-Nissan-Mitsubishi Alliance. Ghosn, who is at the center of the scandal, will remain in detention until at least Jan. 1.

Global News!

Prosecutors had also attempted to keep Kelly in custody, arguing he is a flight risk. The court ultimately ruled that he could be released on bail of 70 million yen, or $636,000. The American executive must also abide by restrictions on his movement. (more…)