U.S. Regulators Begin Looking at Suspensions in Tesla's Model S
June 09 2016 - 6:30PM
Dow Jones News
U.S. regulators started probing possible suspension problems in
Tesla Motors Inc.'s Model S sedan and took the Silicon Valley
electric car maker to task for allegedly using nondisclosure
agreements that could discourage customers from reporting safety
problems.
The National Highway Traffic Safety Administration on Thursday
said it had begun looking into the potential suspension problem, an
initial step that could later lead the agency to open an official
investigation should regulators be persuaded significant problems
exist. Faulty suspensions could cause drivers to lose control of
vehicles. The agency didn't suggest the vehicles are defective or
suffer from widespread safety problems.
In addition, the U.S. car-safety agency expressed concern over
apparent nondisclosure agreements under which Tesla allegedly
offered to cover some costs for repairing affected vehicles so long
as customers kept the problem to themselves.
"NHTSA is examining the potential suspension issue on the Tesla
Model S, and is seeking additional information from vehicle owners
and the company," the agency said in a statement. "NHTSA learned of
Tesla's troublesome nondisclosure agreement last month. The agency
immediately informed Tesla that any language implying that
consumers should not contact the agency regarding safety concerns
is unacceptable, and NHTSA expects Tesla to eliminate any such
language."
Tesla representatives told regulators the company didn't intend
to dissuade consumers from contacting them, the agency said.
Tesla is looking into the alleged suspension issue and hasn't
yet found it to be a widespread problem, said a person close to the
company. Tesla's agreement with customers aimed to keep them from
discussing issues on internet message boards, but didn't intend to
discourage them from talking with car-safety regulators, this
person said.
Daily Kanban, an automotive blog, previously reported on the
alleged Tesla suspension problems and the response from
regulators.
The owner of a Model S reported on company owner forums in April
that his left front assembly separated from the upper control arm
after driving 70,000 miles. While the car's warranty has expired,
such a problem is unusual for a vehicle with that amount of miles.
He alleged that Tesla asked him to sign a "goodwill agreement" that
forbid him from disclosing the problem more widely in exchange for
the company covering some repair costs.
The suspension issue has separately been pushed by an Australian
man who has alerted regulators to the alleged problem. He believes
he discovered the problem by examining Tesla vehicles in various
junk yards and by reading online forums.
(END) Dow Jones Newswires
June 09, 2016 18:15 ET (22:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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