Dear Interested Party: Enclosed is the 2016 Annual Statistical Report prepared by the Department of Consumer Affairs Arbitration Certification Program (ACP) using statistics provided by state-certified arbitration programs in accordance with Title 16, California Code of Regulations, Section 3399.4. The report consists of the following cumulative and individual tables for each state-certified arbitration program: Table A Summary of total disputes closed by the three state-certified arbitration programs – Better Business Bureau Auto Line (BBB), California Dispute Settlement Program (CDSP), and Consumer Arbitration Program for Motor Vehicles (CAP-Motors). Table B Statistics for total disputes closed by the BBB involving vehicles manufactured by Aston Martin, Audi, Bentley, BMW (includes Mini Cooper), Ferrari, Ford, General Motors, Hyundai/Genesis, Infiniti, Jaguar, Kia, Lamborghini, Land Rover, Lotus, Maserati, Mazda, Nissan, and Volkswagen. Table C Statistics for total disputes closed by CDSP involving vehicles manufactured by Toyota (includes Scion), Tesla Motors, and Fiat Chrysler Automotive US. Table D Statistics for total disputes closed by the CAP-Motors involving vehicles manufactured by Porsche.
Reported Disputes 2015 2016
Total Disputes Filed 2309 2561 Out of Jurisdiction 1119 1157 Mediated 500 482 Arbitrated 561 746 Withdrawn 129 176
Arbitrators’ Decision 2015 2016
Repair 70 49 Replacement/Repurchase 133 168 Reimbursement of Expenses 10 7 No Relief 345 517 Other* 3 4
*This category of remedies includes attorneys’ fees, reimbursement of monthly mortgage payments or extended service contracts coverage.
ARBITRATION CERTIFICATION PROGRAM 1625 North Market Blvd., Suite N112, Sacramento, CA 95834 P (916) 574-7350 F (916) 574-8638 www.LemonLaw.ca.gov
Possible factors that may have contributed to significant decreases or increases in 2016 are summarized below:
• The percentage of consumers and manufacturers electing to voluntarily mediate their claims continues to fall from 42% of eligible cases in 2015 to 34% of eligible cases in 2016. This continues to drive a steady increase in arbitrated cases
• Consumers receiving no relief returned to its historical average of around 69% of
arbitrated cases, following a one year dip to 61% of arbitrated cases in 2015
• An 11% percent increase in Total Disputes Filed as consumers learned about their manufacturer’s arbitration program through their dealerships, the manufacturer and personal research
• A 33% increase in Arbitrated cases as more consumers filed for arbitration and
pursued arbitration instead of voluntary mediation
• A 36% increase in Withdrawn cases as some consumers opted to hire an attorney or trade in their vehicle to resolve their warranty matter
• A 30% decrease in overall Repair Decisions as arbitrators awarded more
Replacement /Repurchase and No Relief decisions
• A 26% increase in overall Replacement/Repurchase Decisions as consumers presented cases that persuaded arbitrators to find in their favor
• A 50% increase in overall No Relief Decisions as arbitrators believed the alleged
defects did not rise to substantial nonconformities Thank you for your continued interest in California certified arbitration programs. If you have any questions or comments, please call the ACP at (916) 574-7350. Enclosures
Arbitration Certification Program STATISTICAL REPORT
Calendar Year 2016
May 2016
www.LemonLaw.ca.gov
Summary of Total Disputes* (All State-Certified Arbitration Programs)
Table A
*Data reflects cumulative total of all programs since 2001.
Table B
Statistics for Total Disputes by the BBB Auto Line Involving
Vehicles Manufactured by:
Aston Martin Audi
Bentley BMW (includes Mini Cooper)
Ferrari Ford
General Motors Hyundai Infiniti Jaguar
Kia Lamborghini Land Rover
Lotus Maserati Mazda Nissan
Volkswagen
Table C
Statistics for Total Disputes by the California Dispute Settlement Program
Involving Vehicles Manufactured by:
Tesla Toyota (Includes Scion)
FCA US –Alfa Romero, Chrysler, Dodge, Fiat, Jeep, and Ram
TABLE D
Statistics for Total Disputes by the Consumer Arbitration Program for Motor Vehicles
(CAP-Motors)
Involving Vehicles Manufactured by:
Porsche