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Case ID: 4982 | Automotive | 04/03/2007
GM is going to cut off 10% — roughly 500,000 — of its OnStar users because the system is upgrading to digital equipment as of Jan. 1, 2008.
OnStar is the concierge service provided in GM vehicles, made famous by the company’s ad campaign featuring folks getting locked out of their cars or calling for help after an accident. Owners of pre-2003 cars will get an offer from OnStar for a free year of service, but owners will have to buy a new GM car to get it-- more likely they’ll buy an upgrade kit installed at dealerships for $15. GM hopes owners don’t give up on OnStar entirely because of the switch. Other vehicles impacted include Lexus models with LexusLink, but those numbers are small in comparison to GM’s. Mercedes-Benz offers a similar service and will also be switching to digital, cutting off nearly 200,000 of its 420,000 subscribers to Tele Aid. Owners of 2001 - 04 models will have to get an upgrade as well, but the cost for the new equipment ranges from $600 to $1,500. We’re guessing even Mercedes owners will balk at that fee, even with the $100 - $200 rebate the car company is providing. The suit also asks for unspecified monetary damages. GM dealers have been supplied with stickers to put next to the OnStar buttons on used cars for sale. The stickers tell buyers whether the OnStar system can be upgraded to digital, is already digital-ready or will be useless after Dec. 31. OnStar spokeswoman Jocelyn Allen provided OnStar’s statement on the shutdown, which resulted from a 2006 Federal Communications Commission decision that allows mobile phone companies to turn off their analog transmission systems in early 2008. “Approximately 90 percent of OnStar subscribers have vehicles that either are capable of operating on the digital network or can be upgraded to operate on the digital network,” the statement reads. According to OnStar, once General Motors realized the FCC would allow the phase-out of analog systems, it created kits for many models’ electrical systems designed to upgrade the service to digital technology. “Unfortunately, digital-capable upgrade kits were not created for a small percentage of earlier GM models due to significant differences in their electrical systems,” the statement reads. The company has not released a list, but says some 2002, most 2003 and nearly all 2004 and 2005 models are upgradeable. The system debuted in 1996. The lawsuit seeks to represent certain owners of vehicles equipped with OnStar. At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Automotive Cases of Interest A class action lawsuit was filed in the Eastern District of Michigan on behalf of
plaintiffs, against the Automobile Club of Michigan. The lawsuit alleges violation of ERISA against defendant Automobile Club of Michigan (AAA), failure to maintain records; failure to credit hours of service required by ERISA; and violation of FLSA Claims (Fair Labor Standards Act) against defendant Automobile Club of Michigan. The class has been certified in an action filed against the Oklahoma Transportation Authority and the State of Oklahoma on behalf of all current and former PikePass customers who had at least one force match transaction after July 11, 1997. The action alleges that Oklahoma's automated toll-gathering system has overcharged travelers for at least the last seven years. Persons eligible to take part in the action should contact the attorneys for the class to register. The class has been certified in an action filed against Kia Motors America, Inc. on behalf of Pennsylvanians who purchased or leased a 1995-2001 Kia Sephia for personal, family or household purposes. The action alleges that the autos have inherently defective brakes in violation of the Pennsylvania Unfair Trade Practices and Consumer Protection Law, the federal Magnuson-Moss Warranty Improvement Act, along with allegations for breach of implied and express warranties.
A California statewide notice program authorized by California's Sacramento County Superior Court began to issue notices to those who bought, owned or leased 1991-2001 model year Ford Explorers. When manufacturers know about a defect in their products but do nothing about it, you can expect a class action to be in the works. A nationwide class action has been filed against Ford Motor Company on behalf of owners of vehicles manufactured from 1996 to 2001 alleging that the company manufactured certain engines using an inherently defective intake manifold in violation of the federal Magnuson-Moss Warranty Act Thousands of New Jersey motorists will be eligible for a payback under terms of a class action settlement.
The settlement would cover consumers who bought or leased a new or used vehicle from one of more than 397 various New England dealerships in the last eight years. |
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