American Suzuki and Consumer Reports Magazine Settle Lawsuit
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Japanese Automaker and Consumer Advocate Magazine Ending 8-Year Battle
Putting an end to a bitter battle that has gone on for over eight years, American Suzuki Motor Corporation and the publisher of Consumer Reports (Consumers Union) came to a mutual agreement in regards to a 1988 test review that claimed the Japanese automakers Samurai SUV was prone to rollovers (see Mar 9, 2004: American Suzuki vs. Consumer Reports Libel Suit Takes Interesting Twist, for a historical account).
Suzuki will not receive payment for alleged damages under the settlement, according to a statement issued Thursday by both parties, but rather a mutual stalemate has been achieved.
“The parties have acknowledged their mutual respect for each other in that Suzuki recognizes Consumers Unions stated commitment for objective and unbiased testing and reporting, and CU recognizes Suzukis stated commitment for designing, manufacturing and marketing safe vehicles,” the joint statement read.
Initially in the 1996 suit, American Suzuki sued for $60 million and punitive damages, under the suspicion that Consumers Union was doctoring the tests that achieved negative results. The news made headlines across North America, which the automaker claims resulted in a substantive reduction in Samurai SUV sales.
It is important to note that Consumer Reports has not run a retraction of its initial rollover claim, but nevertheless has stated that the Samurai does not easily roll over under normal driving conditions.
While both sides appear on the surface to be in agreement, theres definitely love lost. Suzuki continues to question the validity of Consumers Unions testing methods, while Consumers Union “stands by its test protocol and finding,” according to the statement.
On the subject R. David Pittle, senior vice president for technical policy at Consumer Reports, stated “This is a settlement to feel very good about.” He added, “We stand fully behind our published reports and testing of the Samurai.”
Suzuki has its own take on the results of the settlement, with Cam Smith Arnolds, vice president of customer relations and communications stating, “It was really about restoring the reputation of the Samurai and of Suzuki.” He continued, “Consumers Union admits the Samurai does not easily rollover. That was a huge, huge issue and you dont get that in court.”
As important to both parties, now that the case is settled money that has been allocated for legal fees can now be put into more productive activities. In Suzukis case, despite a massive increase in sales due to new products, the result of a cooperative manufacturing deal with General Motors GMDAT division (the South Korean automaker that grew out of the ashes of Daewoo), it must focus on improving its placement in J.D. Power and Associates 2004 Initial Quality Survey (IQS), where it is currently ranked 30th out of 37 nameplates. It suffered similarly in the J.D. Powers 2004 Vehicle Dependability Study too, placing 31st out of 37 nameplates.
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