Current Events in November 2015

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    What self-employed Baby Boomers want from the next President

    Survey finds healthcare concerns top the list

    With a presidential election a year away, pollsters are busy quizzing different segments of the population about the candidates they like and their hot button issues.

    The folks at TD Ameritrade decided to do a little polling of their own, asking self-employed Baby Boomers what they would like to see from the next President of the United States. Their answers might not be all that different from other Americans.

    They'd like someone to do something to rein in healthcare costs.

    In the TD Ameritrade survey, 51% said they want the next President to reduce healthcare costs with 26% complaining that rising healthcare costs have reduced their ability to save. Thirty-five percent of respondents said the rising cost of health insurance has hurt their business.

    Cynacism or realism?

    The survey also uncovers a bit of cynacism – or perhaps realism. Sixty-four percent of self-employed Baby Boomers said they don't expect their concerns to be much of a priority for the next President, regardless of who moves into the White House.

    Over half – 57% – think political and economic changes over the past three to five years are impacting their business and that a higher minimum wage could just make things worse. Over 40% said they opposed a minimum wage hike to $15 an hour, with 30% saying it could affect their businesses in a negative way.

    At the same time, 20% complained about new government regulations, saying they have made things worse over the last three to five years.

    Retirement woes

    Over half – 55% – say they aren't saving enough for retirement, with nearly half pointing to the inability to predict income as the main reason. Seventy-six percent simply say they’ll continue working if they can’t save enough and 51% count on social security or government pensions.

    “Many of the self-employed recognize how important retirement savings is, but they’re more likely to be living in the here-and-now, and they have unpredictable income that can make savings a challenge,” said Dara Luber, senior manager of retirement at TD Ameritrade, Inc. “Business owners are sometimes put off by what they perceive as the hassle and costs of plan administration, but it may be easier and more affordable than many believe - and can include tax benefits.”

    Meanwhile, the survey found the self-employed do manage to put away an average of about $400 a month for non-retirement needs. These “here-and-now” needs include unforeseen emergencies, college costs for a child, vacations, and home improvements.

    With a presidential election a year away, pollsters are busy quizzing different segments of the population about the candidates they like and their hot but...

    Consumers buying more cars, paying more and going deeper in debt

    Big segment of the economy is dependent on consumers being able to make the monthly payments

    Economists have wondered in recent months where consumers were spending the money they were saving on gasoline prices.

    The answer appears to be at car dealers.

    New U.S. car sales rose at a record pace last month, recording the best October since 2001. Sales were up double-digits for all brands, except for Volkswagen, which continues to deal with the fallout from its emissions scandals.

    “We've officially passed recovery mode and are now into record new-car sales,” said Karl Brauer, senior analyst for Kelley Blue Book. “All the key factors, including pent-up demand, low interest rates, easy credit and cheap gas, were in place for unprecedented October sales. Like 2005 all over again, truck sales are dominating the market, and driving not only growth but healthy profits throughout the industry. Right now it's a great time to be an automaker or dealer.”

    Prices rising

    Not only are consumers buying more new cars, they continue to pay more for them. Brauer says the average transaction price on light vehicles in October was $34,023, up 1.4% from a year ago and up half that from August.

    All that, of course, is good for the economy – as long as consumers can pay for these ever-more-expensive cars and trucks.

    And as sales and prices go up, so does the amount consumers must borrow to drive away in a new vehicle. A report by Experian Automotive puts outstanding loan balances on automotive purchases at a record level in the third quarter of 2015 – $968 billion. That's up more than 53% since a post-recession low in 2010.

    Is this a good thing? Maybe. Maybe not.

    "Continued growth in the automotive finance market is a clear sign of improved consumer confidence over the past few years," said Melinda Zabritski, Experian's senior director of automotive finance. "Since bottoming out in the recession, automotive sales have rebounded steadily, which is a good sign for consumers, automotive manufacturers, lending organizations and the overall economy.”

    On the other hand

    But Zabritski hedges that assessment with this condition – consumers must stay on top of their monthly payments.

    “If they can continue to manage their financial obligations and make timely payments, the automotive industry can continue to flourish and grow for quite some time," she said.

    So far, it looks like consumers are holding up their end of the bargain. During the third quarter of 2015, 30-day delinquencies dropped to 2.5% from 2.7% a year earlier. Sixty-day delinquencies also declined slightly over the same time period.

    Economists have wondered in recent months where consumers were spending the money they were saving on gasoline prices.The answer appears to be at car d...

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      Microsoft limits unlimited One Drive storage

      Company says too many subscribers backed up too much stuff

      One of the perks of subscribing to Microsoft's Office 365 is always having an up-to-date version of the software.

      Another is the unlimited cloud storage on Microsoft's One Drive. Instead of saving files to a single machine, OneDrive makes them available from any connected device.

      While access to OneDrive is still there, the unlimited part is not. Microsoft announced this week that it will no longer provide unlimited space. Too many subscribers got greedy, the company says.

      Storage wars

      “Since we started to roll out unlimited cloud storage to Office 365 consumer subscribers, a small number of users backed up numerous PCs and stored entire movie collections and DVR recordings,” the company wrote in the OneDrive Blog. “In some instances, this exceeded 75 TB per user, or 14,000 times the average.”

      Instead of taking action against those involved in extreme backups, Microsoft said it wants “to remain focused on delivering high-value productivity and collaboration experiences that benefit the majority of OneDrive users.”

      That translates into limits for all. Office 365 Home, Personal, or University subscribers will get 1TB of storage.

      In addition, 100 GB and 200 GB paid plans are going away as an option for new users and will be replaced with a 50 GB plan for $1.99 per month in early 2016. Free OneDrive storage will decrease from 15 GB to 5 GB for all users, current and new.

      Microsoft said it is also discontinuing the 15 GB camera roll storage bonus early next year.

      Grace period

      Office 365 consumer subscribers who have stored in excess of 1 TB will be notified of this change and will be able to keep the extra storage for at least 12 months. Subscribers who choose to opt out will receive a pro-rated refund.

      Consumers using more than 5GB of free storage will continue to have access to all files for at least 12 months as the changes go into effect, the company said. Current customers of standalone OneDrive storage plans, such as a 100 or 200 GB plans, are not affected by these changes.

      “OneDrive has always been designed to be more than basic file storage and backup,” Microsoft said. “These changes are needed to ensure that we can continue to deliver a collaborative, connected, and intelligent service.”

      One of the perks of subscribing to Microsoft's Office 365 is always having an up-to-date version of the software.Another is the unlimited cloud storage...

      Pace of job creation slips in October

      Goods-producing employment had its best month since January

      Employment in the private sector rose in October, but the pace of job creation was down a bit from September.

      According to the ADP National Employment Report, produced by the payroll firm in collaboration with Moody's Analytics, the economy cranked out 182,000 jobs. There were 200,000 new jobs the month before.

      Despite the decline in job creation from September, Moody's Analytics Chief Economist Mark Zandi says job growth is not slowing meaningfully in contrast with the recent slowdown in the government's data. “The economy is creating close to 200,000 jobs per month,” he noted, adding that, “job gains are broad based with energy and manufacturing alone subtracting from the top line. Small businesses, in particular, are contributing to the labor market's solid performance."

      Where the jobs are

      As is often the case, job creation by small businesses -- those with 49 or fewer employees -- led the way, adding 90,000 jobs in October, nearly double the revised September gain of 47,000. Firms with 50-499 employees increased by 63,000 jobs, up 50% from the previous month.

      Employment at large companies -- those with 500 or more employees – was up by 29,000 jobs in October after adding 101,000 the previous month, companies with 500-999 workers added 7,000 jobs. and those with more than 1,000 employees gained 22,000 jobs, after adding 100,000 in September.

      Goods-producing employment jumped by 24,000 jobs in October -- the sector's best month since January of this year. Construction added 35,000 jobs, roughly matching September's gain, while manufacturing lost 2,000 jobs in October after shrinking by 17,000 a month earlier.

      Employment in the services sector rose by 158,000 jobs with professional/business services contributed 13,000 new hires. Trade/transportation/utilities grew by 35,000, and there were 9,000 new jobs added in financial activities - the fewest for that industry in the last six months.

      "Firm size contributions to October employment gains returned to the same pattern we had been seeing for some time prior to September as small businesses rebounded to account for almost half the jobs added," said Ahu Yildirmaz, VP and head of the ADP Research Institute. "Large companies continue to be negatively impacted by trends such as low oil prices and the strong dollar driving weaker exports. On the other hand, small businesses can benefit from these same trends."

      Employment in the private sector rose in October, but the pace of job creation was down a bit from September. According to the ADP National Employment Rep...

      Mortgage applications post slight decline

      Contract interest rates were mostly higher

      Mortgage applications posted their second consecutive decline last week.

      Figures from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey show applications dipped 0.8% in the week ending October 30.

      The Refinance Index was down 1%, while the refinance share of mortgage activity increased to 59.7% of total applications from 59.5%. The adjustable-rate mortgage (ARM) share of activity increased to 6.7%, the FHA share fell to 13.2% from 13.7% the week before, the VA share was 11.9% and the USDA share was unchanged at 0.7%.

      Contract interest rates

      • The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances ($417,000 or less) was up three basis points -- to 4.01% from 3.98% -- with points increasing to 0.47 from 0.44 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate increased from last week.
      • The average contract interest rate for 30-year FRMs with jumbo loan balances (greater than $417,000) rose to 3.90% from 3.88%, with points increasing to 0.34 from 0.33 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
      • The average contract interest rate for 30-year FRMs backed by the FHA inched up one basis point to 3.81%, with points increasing to 0.32 from 0.30 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
      • The average contract interest rate for 15-year FRMs increased to 3.24% from 3.22%, with points falling to 0.37 from 0.44 (including the origination fee) for 80% LTV loans. The effective rate was unchanged from last week.
      • The average contract interest rate for 5/1 ARMs jumped 9 basis points to 3.12%, with points slipping to 0.25 from 0.34 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.

      The survey covers over 75% of all U.S. retail residential mortgage applications.

      Mortgage applications posted their second consecutive decline last week. Figures from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application...

      Pelmen Foods recalls beef, chicken and pork products

      The products were not presented at the U.S. point of entry for inspection

      Pelmen Foods of Ontario, Canada, is recalling approximately 332 pounds of beef, chicken and pork dumpling products.

      The products were not presented at the U.S. point of entry for inspection. Without the benefit of full inspection, a possibility of adverse health consequences exists.

      There have been no confirmed reports of adverse reactions due to consumption of these products.

      The following dumpling products, imported on Oct. 8, 2015, and sold between Oct. 8, 2015, and Oct. 30, 2015, are being recalled:

      • 12.4 lb. cases containing 12 bags of “Pelmen Foods PELMENI Siberian Recipe (Pork & Beef)” with “EXP Oct 02’ 16” and Lot 5275 on the bags
      • 12.4 lb. cases containing 12 bags of “Pelmen Foods PELMENI Chicken” with “EXP Oct 02’ 16” and Lot 5275 on the bags

      The recalled products, which bear establishment number “721” inside Canada’s mark of inspection, were shipped to distributors in Illinois and Wisconsin.

      Customers who purchased these products should not to consume them, but throw them away or return them to the place of purchase.

      Consumers with questions about the recall may contact Svetlana Minos at (416) 661-9600 Ext 205.

      Pelmen Foods of Ontario, Canada, is recalling approximately 332 pounds of beef, chicken and pork dumpling products. The products were not presented at the...

      Mercedes-Benz recalls vehicles with air bag issue

      The air bag control unit may corrode and cause the control unit to malfunction

      Mercedes-Benz USA (MBUSA) is recalling 126,260 model year 2008-2009 C300 Sedan, C300 4Matic, C63 AMG, and C350 vehicles, and 2010 GLK350 and GLK350 4Matic vehicles.

      Due to a manufacturing error, the air bag control unit may corrode and cause the control unit to malfunction. The malfunctioning air bag control unit may cause the air bags to unexpectedly deploy increasing the risk of injury and the possibility of a vehicle crash.

      Alternatively, the air bag control unit malfunction may cause the air bags to not deploy in the event of a crash necessitating air bag deployment, increasing the risk of occupant injury.

      MBUSA will notify owners, and dealers will inspect the air bag control unit and replace it, as necessary, free of charge. The manufacturer has not yet provided a notification schedule.

      Owners may contact MBUSA customer service at 1-800-367-6372.

      Mercedes-Benz USA (MBUSA) is recalling 126,260 model year 2008-2009 C300 Sedan, C300 4Matic, C63 AMG, and C350 vehicles, and 2010 GLK350 and GLK350 4Matic ...

      Honda recalls Pilot 2WD and 4WD vehicles

      Safety system warning lights may malfunction

      American Honda Motor Co. is recalling 35,406 model year 2016 Honda Pilot 2WD vehicles manufactured May 4, 2015, to September 8, 2015, and 2016 Pilot 4WD vehicles manufactured May 7, 2015 to September 4, 2015.

      When one of the safety systems such as tire pressure monitoring, anti-lock braking or electronic stability control malfunctions, there is potential that the instrument panel will not illuminate the corresponding warning light. However the warning lamps will illuminate when the ignition is turned off and then turned back on.

      As such, these vehicles fail to comply with the requirements of Federal Motor Vehicle Safety Standard (FMVSS) number 126, "Electronic stability control systems", number 135, "Light vehicle brake systems" and number 138, "Tire pressure monitoring systems".

      If a safety system cannot immediately warn the driver when needed, the driver may be at at increased risk of a crash.

      Honda will notify owners, and dealers will update the instrument cluster software, free of charge. The recall is expected to begin November 27, 2015.

      Owners may contact Honda customer service at 1-888-234-2138. Honda's number for this recall is JV7.

      American Honda Motor Co. is recalling 35,406 model year 2016 Honda Pilot 2WD vehicles manufactured May 4, 2015, to September 8, 2015, and 2016 Pilot 4WD ve...

      Takata fined $200 million, ordered to phase out troublesome airbag component

      Safety regulators order faster, prioritized action to get defective airbags off the road

      Airbag manufacturer Takata has been hit with a $200 million fine, the largest civil penalty in the history of the National Highway Traffic Safety Administration.

      Takata was also ordered to accelerate recalls of defective airbag inflators and ordered to phase out the use of ammonium nitrate propellant, the chemical thought to be the cause of explosive airbat ruptures that have killed at least seven people in the United States and injured nearly 100 more.

      “For years, Takata has built and sold defective products, refused to acknowledge the defect, and failed to provide full information to NHTSA, its customers, or the public,” said Transportation Secretary Anthony Foxx. “The result of that delay and denial has harmed scores of consumers and caused the largest, most complex safety recall in history. Today’s actions represent aggressive use of NHTSA’s authority to clean up these problems and protect public safety.”

      The consent order issued to Takata also lays out a schedule for recalling all Takata ammonium nitrate inflators now on the roads, unless the company can prove they are safe or can show it has determined why its inflators are prone to rupture.

      Aware of the defect

      As part of the consent order, Takata has admitted that it was aware of a defect but failed to issue a timely recall, a violation of the Motor Vehicle Safety Act.

      NHTSA also issued findings that Takata provided NHTSA with selective, incomplete or inaccurate data dating back to at least 2009, and continuing through the agency’s current investigation, and that Takata also provided its customers with selective, incomplete or inaccurate data.

      Of that $200 million fine, $70 million is payable in cash. An additional $130 million would become due if Takata fails to meet its commitments or if additional violations of the Safety Act are discovered.

      The order also imposes what NHTSA called "unprecedented oversight" on Takata for the next five years, including an independent monitor selected by NHTSA to assess, track and report the company’s compliance with the phase-out schedule.

      “Today, we are holding Takata responsible for its failures, and we are taking strong action to protect the traveling public,” said NHTSA Administrator Mark Rosekind. “We are accelerating Takata recalls to get safe air bags into American vehicles more quickly, ensuring that consumers at the greatest risk are protected, and addressing the long-term risk of Takata’s use of a suspect propellant.”

      "Pivot point"

      In a prepared statement, Takata CEO Shigehisa Takada said he "deeply regret[s] the circumstances that led to this Consent Order."

      "This settlement is an important step forward for Takata that will enable us to focus on rebuilding the trust of automakers, regulators and the driving public," Takada said. "We will comply with all aspects of the settlement and are committed to being part of the solution.”  

      Prioritize recalls

      In addition, Takata and the 12 vehicle manufacturers involved in the existing Takata recalls are ordered to prioritize their remedy programs based on risk, and establishes a schedule by which they must have sufficient parts on hand to remedy the defect for all affected vehicles. 

      NHTSA is using for the first time legal authority which was established in the 2000 TREAD Act to allow the agency to accelerate safety defect repairs if manufacturers’ remedy plans are likely to put Americans at risk.

      NHTSA announced in June that it was considering use of that authority, and has since gathered information and comment from vehicle manufacturers, parts suppliers and the public as part of a proceeding to determine whether and how to best address recalls involving more than 23 million inflators, 19 million vehicles and 12 automakers.

      Airbag manufacturer Takata has been hit with a $200 million fine, the largest civil penalty in the history of the National Highway Traffic Safety Administr...

      Volkswagen denies latest diesel cheating charge

      But industry analysts say the carmaker has dug itself a deeper hole

      The Environmental Protection Agency's (EPA) charge that Volkswagen's diesel cheating scandal is more widespread than originally reported brought shock from industry analysts and denial from the German automaker.

      As we reported Monday, the EPA has determined that several VW, Porsche, and Audi models with 3.0-liter diesels have been found with "defeat device" software similar to that used on nearly half a million of the smaller TDI engines.

      The agency issued a new Notice of Violation covering the 2014 VW Touareg; 2015 Porsche Cayenne; and 2016 Audi A6 Quattro, A7 Quattro, A8, A8L, and Q5 crossover.

      “Permissible software”

      But VW is denying the charges, with a company spokesman telling The Wall Street Journal that the cars contain “permissible software” and suggesting the U.S. government agency has an ulterior motive.

      “What’s at issue here is clear – does the U.S. want competition in the American market or not?” the spokesman told the Journal.

      In a separate statement, Porsche Cars North America said it was blindsided by the EPA finding.

      “We are surprised to learn this information,” the statement said. “Until this notice, all of our information was that the Porsche Cayenne Diesel is fully compliant.”

      Casting a shadow

      But Karl Brauer, senior analyst for Kelley Blue Book (KBB), says the official expansion of the U.S. government probe casts a darker shadow on the entire VW Group.

      “It also makes any past claims of ‘a limited number of people’ involved in the deception appear even more outrageous,” Brauer said. “Volkswagen would do well to immediately and completely disclose all people and products involved in this deception, no matter how far-reaching. Repairing the automaker’s brand and regaining trust should be VW Group’s highest priority at this point, but it can’t begin until full and voluntary disclosure is achieved.”

      Fellow analyst Rebecca Lindland, senior director of commercial insights for KBB, says the EPA action Monday should not have come as a real surprise.

      “This just makes official what we all suspected – no make or model was spared this treatment since the technology was shared across all diesel engines in the VW family,” she said.

      Heftier fines and costs

      Lindland says the result for the beleaguered automaker will be potential fines that will be even greater than first calculated, and more expensive fixes as well.

      “Whatever compensation they come up with may satisfy a VW Jetta owner, but is less likely to satisfy a Porsche Cayenne owner who paid so much more for their vehicle,” Lindland said.

      According to Car and Driver, the software the EPA says deceived emissions test equipment is used for cold starting diesel engines. It's perfectly legal for that purpose.

      “However, Volkswagen violated the law by not disclosing this software to the EPA and by employing code that explicitly switched the car’s emissions system from a bench-testing mode that actually outperformed federal standards to allowing dirtier emissions under regular conditions,” the magazine explained.

      In the month since the diesel cheating scandal broke, VW sales in the U.S. have taken a hit. The real impact from this latest EPA action, says Michelle Krebs, senior analyst at Autotrader, is the damage to the Volkswagen brand is likely to spread to the popular Audi brand as well.

      The Environmental Protection Agency's (EPA) charge that Volkswagen's diesel cheating scandal is more widespread than originally reported brought shock from...

      Calorie labels on menus found to have little effect

      Study finds orders pretty much the same, in spite of information

      The lesson seems to be pretty clear; you can tell people how many calories are in the fast food they're ordering but it doesn't make them order any less of it.

      Six years ago, well before it was about to become a national law, New York City required chain restaurants to post calorie counts on menus.

      It seemed like a good way to help consumers make food decisions, and maybe consume fewer calories. As some predicted at the time, it doesn't appear to have worked out that way.

      In a report published in the journal Health Affairs, researchers at NYU Langone Medical Center have found that calorie labels, on their own, have not reduced the overall number of calories that consumers of fast food order and presumably eat.

      Before and after

      The researchers studied fast food orders after the calorie posting requirement was in effect and compared them to orders before the numbers were posted on menus. They found the calories were essentially the same, or if anything higher when diners had access to calorie information.

      Calorie counts in the 2013-2014 analysis averaged between 804 and 839 per meal at menu-labeled restaurants. They averaged 783 per meal for labeled restaurants and 756 per meal for non-labeled restaurants shortly after the policy was introduced.

      “Our study suggests that menu labeling, in particular at fast-food restaurants, will not on its own lead to any lasting reductions in calories consumed,” said study senior investigator Brian Elbel.

      The research team writes that its findings offer early evidence of the possible impact of menu labelings as the federal government prepares to introduce the policy nationwide in December 2016 as part of its Affordable Care Act.

      The lesson seems to be pretty clear; you can tell people how many calories are in the fast food they're ordering but it doesn't make them order any less of...

      Study finds for-profit degree no better than a community college certificate

      The findings reinforce advice that spending more at a for-profit school doesn't pay off

      You read it everywhere: advice to prospective college students that they look first to public community colleges rather than for-profit schools, which can be five times as expensive.

      Now a study by researchers at the University of Missouri finds that hiring managers show no preference for hiring people with for-profit college credentials compared to those holding comparable credentials from public community colleges.

      "Tuition at for-profit colleges can be as much as five times higher than at two-year community colleges," said lead researcher Cory Koedel. "When people are weighing their higher-education options, tuition cost and the ability to gain employment after school should be considered heavily. This study shows that no significant difference exists with respect to generating employer interest between individuals with community college and for-profit degrees. For many people, community college may be the better option financially."

      Random résumés

      For their study, Koedel, Rajeev Darolia, an assistant professor in the MU Truman School of Public Affairs, and their co-authors, randomly generated thousands of résumés that included either a for-profit college credential, a two-year community college credential, or only a high school diploma. The researchers then sent the résumés to a number of job openings for open positions in fields including sales, customer service, information technology, medical assistance and office, and administrative assistance. T

      They found that hiring managers called back to inquire about fake candidates at the same rate, regardless of whether the candidates held community college or for-profit credentials.

      "It is clear that employers are not placing any kind of higher value on for-profit credentials relative to community college credentials," Koedel said. "While for-profit colleges may be a good solution for some people, they are expensive, and our study indicates that there are other, more cost-effective education options that are perceived similarly by employers."

      This study was published in the Journal of Policy Analysis and Management.

      You read it everywhere: advice to prospective college students that they look first to public community colleges rather than for-profit schools, which can ...

      Honda recalls CR-Vs

      The driver's front air bag inflator could rupture

      American Honda Motor Company is recalling 515 model year 2016 CR-Vs manufactured October 12, 2015, to October 19, 2015.

      The metal housing surrounding the driver's air bag inflator in these vehicles may have been manufactured incorrectly. In the event of a crash necessitating deployment of the driver's front air bag, the inflator could rupture with metal fragments striking the driver or other occupants resulting in serious injury or death.

      Honda will notify owners, and dealers will replace the driver side frontal air bag module, free of charge. The recall is expected to begin December 4, 2015.

      Owners may contact Honda customer service at 1-800-999-1009. Honda’s number for this recall is JV9.

      American Honda Motor Company is recalling 515 model year 2016 CR-Vs manufactured October 12, 2015, to October 19, 2015. The metal housing surrounding the...

      WeThePeople BMX bicycles and cranksets recalled

      The left end of the bicycle crankset spindle can break

      Quality Bicycle Products (QBP) of Bloomington, Minn., is recalling about 110 WeThePeople Envy BMX bicycles and about 210 Eclat Aeon cranksets in the U.S. and Canada.

      The left end of the bicycle crankset spindle can break, posing a fall hazard to the rider.

      The company has received five reports of the crankset spindles breaking. No injuries have been reported.

      The recall involves WeThePeople Envy BMX bicycles and aftermarket ECLAT Aeon BMX cranksets.

      The Envy BMX bicycles have a 20.6 or 21 inch chromoly frame, painted dark gold. The bicycle bottom bracket has an “ENVY20.6” or “ENVY21” stamp.

      The ECLAT Aeon BMX cranksets are the gears at the front of the bicycle chain with pedals attached to the outer ends. The cranksets have a steel, two-piece construction.

      Printed on the left side of the spindle is ESS Eclat 22mm” and next to the pedal, on the crank arm is “Aeon.” Printed on the inside of the crank arm is “Eclat Germany” followed by the crank arm length “170mm” or “175mm.”

      The bicycles and cranksets, manufactured in Taiwan, were sold at BMX bicycle/product dealers, WeThePeople distributors and specialty bicycle retailers nationwide and online at www.QBP.com and other BMX bicycle/product websites from September 2014, through July 2015. The Envy bicycles sold for about $1,100 and the aftermarket cranksets sold for about $180.

      Consumers should immediately stop riding the recalled bicycles and cranksets and return to the store where purchased for a free inspection and free replacement spindle.

      Consumers may contact QBP toll-free at 844-610-7484 from 8 a.m. to 6 p.m. (CT) Monday through Friday or online at www.qbpbmx.com and click on the Recall Information tab for more information.  

      Quality Bicycle Products (QBP) of Bloomington, Minn., is recalling about 110 WeThePeople Envy BMX bicycles and about 210 Eclat Aeon cranksets in the U.S. a...

      Chrysler recalls model year 2016 Ram 1500 trucks

      The vehicles may be missing a heat shield for the spare tire

      Chrysler (FCA US LLC) is recalling 253 model year 2016 Ram 1500 trucks with a 5.7L engine and dual exhaust manufactured August 3, 2015, to August 10, 2015.

      The affected vehicles may be missing a heat shield for the spare tire. Without a heat shield, heat from the exhaust system may damage the spare tire. When used, the damaged tire may have a tread separation or side wall rupture, resulting in a loss of control and an increased risk of a crash.

      Chrysler will notify owners, and dealers will install a spare tire heat shield if the vehicle is missing one. Vehicles that have already been sold will also have their spare tires replaced. These repairs will be performed free of charge. The manufacturer has not yet provided a notification schedule.

      Owners may contact Chrysler customer service at 1-800-853-1403. Chrysler's number for this recall is R58.

      Chrysler (FCA US LLC) is recalling 253 model year 2016 Ram 1500 trucks with a 5.7L engine and dual exhaust manufactured August 3, 2015, to August 10, 2015....

      EPA: More VW diesels have "defeat device" software

      Violations found in VW, Audi and Porsche models with 3.0-liter engines

      It's not just the 2.0-liter Volkswagen TDI diesel engines that use illegal software to fool emission checks, the U.S. Environmental Protection Agency said today. 

      The EPA says several VW, Porsche, and Audi models with 3.0-liter diesels have been found with "defeat device" software similar to that used on nearly half a million of the smaller TDI engines. 

      The agency today issued a new Notice of Violation to Volkswagen, Audi, and Porsche saying that it found several models with the illegal defeat devices.

      The models are:

      • 2014 VW Touareg;
      • 2015 Porsche Cayenne; and
      • 2016 Audi A6 Quattro, A7 Quattro, A8, A8L, and Q5 crossover. 

      The notice includes only models with the 3.0-liter diesel engine.

      "Once again failed"

      "The EPA's investigation into this matter is continuing," the notice said. "The EPA may find additional violations as the investigation continues." 

      EPA said the software on the 3.0-liter engines increases emissions of nitrogen oxide (NOx) up to nine times the legal standard when the car is not hooked up to emissions-measuring equipment. 

      “VW has once again failed its obligation to comply with the law that protects clean air for all Americans,” said Cynthia Giles, Assistant Administrator for the Office for EPA’s Enforcement and Compliance Assurance. “All companies should be playing by the same rules. EPA, with our state, and federal partners, will continue to investigate these serious matters, to secure the benefits of the Clean Air Act, ensure a level playing field for responsible businesses, and to ensure consumers get the environmental performance they expect.”

      Both the EPA and the California Air Resources Board (CARB) are investigating the latest alleged violations. The new notice covers approximately 10,000 diesel passenger cars already sold in the United States since model year 2014. In addition, it includes an unknown volume of 2016 vehicles.

      "On September 25, the California Air Resources Board sent letters to all manufacturers letting them know we would be screening vehicles for potential defeat devices,” said Richard Corey, Executive Officer of the California Air Resources Board. “Since then ARB, EPA and Environment Canada have continued test programs on additional diesel-powered passenger cars and SUVs.

      "Serious concerns"

      "These tests have raised serious concerns about the presence of defeat devices on additional VW, Audi and Porsche vehicles. Today we are requiring VW Group to address these issues. This is a very serious public health matter. ARB and EPA will continue to conduct a rigorous investigation that includes testing more vehicles until all of the facts are out in the open," Corey said.

      As in the 2.0-liter engines, EPA said VW "manufactured and installed software in the electronic control module of these vehicles that senses when the vehicle is being tested for compliance with EPA emissions standards."

      "When the vehicle senses that it is undergoing a federal emissions test procedure, it operates in a low NOx 'temperature conditioning' mode, EPA said. "Under that mode, the vehicle meets emission standards. At exactly one second after the completion of the initial phases of the standard test procedure, the vehicle immediately changes a number of operating parameters that increase NOx emissions and indicates in the software that it is transitioning to 'normal mode,' where emissions of NOx increase up to nine times the EPA standard, depending on the vehicle and type of driving conditions." 

      It's not just the 2.0-liter Volkswagen TDI diesel engines that use illegal software to fool emission checks, the U.S. Environmental Protection Agency said ...