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Krafcik says US Gov. shutdown is slowing Oct. auto sales

The government shutdown is eroding consumer confidence in the auto market, says John Krafcik, CEO of Hyundai's US sales unit, and could lower October sales by as much as 10 percent, Automotive News reports. "It's that anxiety that keeps customers, potential buyers, on the sidelines when making a big purchase like an automobile," Krafcik says, adding that industry sales could be off by five to 10 percent in October compared to September.
The fourth quarter, which started October 1, usually consists of increased auto sales as dealerships clear their lots to make room for the next year's models. Leading up to the fourth quarter this year, the auto industry was doing well in the fragile, recovering US economy, although September deliveries decreased by 4.2 percent, due in part to this year's Labor Day sales being recorded for August.
To help its customers, Hyundai announced it is deferring new-car loan and lease payments for furloughed federal workers until they're called back to work and also offering them a three-month payment deferral if they buy a new Hyundai in October. "We have already had requests from over a thousand people to have their payments deferred," Krafcik says.

NHTSA opens safety investigations into Toyota, GM and Honda crossovers

The National Highway Traffic Safety Administration is evidently keeping itself very busy these days, as the federal agency has just announced it is launching or renewing investigations into Toyota, Honda and General Motors crossovers.
2006-2008 model year Toyota RAV4 crossovers are under review for allegations of rear tie-rod rust which can result in failure. NHTSA also said it is probing some 35 complaints about 2005 Honda Pilot models with inappropriate activation of the vehicles' stability control system. The alleged malfunction can cause the vehicles to slow down or stop in bad unsafe situations. At the moment, NHTSA is reviewing a petition regarding the Pilot issue, a move that will determine whether it needs to open a full-blown investigation.
In addition, Saturn Outlook and GMC Acadia three-row crossovers built in 2007-2009 are getting looked at for "loss of low beam headlamp" function. One complainant said the wiring in his Outlook overheated and melted. NHTSA says it has received 415 complaints about the problem and a GM spokesman confirmed that the automaker already started a "Customer Satisfaction Program" in December to address the issue.

Toyota settles for $3M after being found liable in sudden acceleration case

A jury has decided that faulty software was to blame for a crash involving a 2005 Toyota Camry that killed one woman and injured another. This is the first time Toyota has been found liable by a jury in a lawsuit involving sudden acceleration claims. Toyota has maintained that driver error is the most likely cause for cases of sudden acceleration.
Shortly after the jury in the case, which took place in Oklahoma and centered around a crash that injured 76-year-old Jean Bookout and killed her passenger, Barbara Schwarz, reached a verdict that would see Toyota paying $3 million in compensatory damages, a confidential settlement was reached. The jury, which had found Toyota liable for "reckless disregard" for public safety, had yet to decide what punitive damages Toyota would face.
Toyota said in a statement, "While we strongly disagree with the verdict, we are satisfied that the parties reached a mutually acceptable agreement to settle this case. We will continue to defend our products vigorously at trial in other legal venues."