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Consumer Reports, Suzuki settle lawsuit

By The Associated Press
07.09.04

DETROIT — The publisher of Consumer Reports magazine and Suzuki Motor Corp. have settled an 8-year-old lawsuit in which the Japanese automaker claimed the magazine doctored road tests in 1988 that found the Suzuki Samurai tipped over too easily.

Suzuki filed the suit in 1996 — a year after it quit selling the small sport-utility vehicle — in U.S. District Court for the Central District of California in Santa Ana.

Statements issued yesterday by Consumers Union, which publishes Consumer Reports, and Suzuki said the lawsuit had been dismissed "and Suzuki has not demanded or received monetary compensation."

Suzuki and Consumers Union filed a joint motion yesterday to have the case dismissed, and the court complied, said Consumers Union spokeswoman Linda Wagner.

"The parties have acknowledged their mutual respect for each other in that Suzuki recognizes CU's stated commitment for objective and unbiased testing and reporting, and CU recognizes Suzuki's stated commitment for designing, manufacturing and marketing safe vehicles," the statements said.

While legal matters have been resolved, conflicts remain. Consumers Union and Suzuki say they still disagree on the validity of Consumer Reports' avoidance maneuver tests on the Samurai in 1988. Suzuki disputes the findings. Consumers Union stands by them.

Consumers Union President Jim Guest stopped short of calling the resolution a victory for the nonprofit organization but said "we're certainly very pleased with the way the lawsuit's been resolved."

"From our point of view, the case has been dismissed, we've issued no retractions or corrections, paid no money and fully stand by ... the article we published," said Guest, whose organization is based in Yonkers, N.Y.

Cam Smith Arnold, a vice president with Brea, Calif.-based American Suzuki Motor Corp., said the agreement allowed the automaker to walk away with its image restored.

"It was really not about money," Smith Arnold said. "It was about restoring the reputation of the Samurai product and the name and brand of Suzuki. We were able to get this from a settlement versus a trial, and we're very happy with it."

Samurai sales plunged after the 1988 test led the magazine to brand the SUV "not acceptable." Other news organizations also reported possible dangers. Samurai production ended in 1995, and Suzuki sued in 1996 after Consumer Reports made another reference in a timeline to the Samurai and its tipping tendencies.

Suzuki claimed Consumer Reports employees designed their road tests to get the Samurai to tip and then used its reports to make money in fund-raising and subscription drives.

The case was thrown out by the trial judge, but the 9th U.S. Circuit Court of Appeals reinstated it and, in November, the Supreme Court refused to stop Consumers Union v. Suzuki Motor Corp. from going forward.

News groups including the Associated Press had urged the Supreme Court to review the appeals court decision, arguing the public has been protected over the years by reports on the dangers of smoking and fast food, among others.

First Amendment Center scholar Ronald K.L. Collins was quoted by the Los Angeles Times as saying, "To me this is a loss in the First Amendment category." The news media "still must think twice about whether they'll go with this kind of story, given the time and cost of litigation."

The National Highway Traffic Safety Administration declined to declare the vehicle defective and has criticized Consumer Reports' tests because of driver variation. Consumers Union said it disagrees with NHTSA's position.

Consumers Union also said it has never questioned the safety of any other Suzuki model it has tested. It said its statement that the Samurai "easily rolls over in turns" was limited to severe turns in Consumer Reports' short course avoidance maneuver.

"CU's use of the adverb 'easily' may have been misconstrued and misunderstood," yesterday's statements from both sides said. "CU never intended to state or imply that the Samurai easily rolls over in routine driving conditions."

Earlier this year, Consumer Reports enlisted its readers to defend itself against Suzuki's charges. The magazine's March issue included a column highly critical of the lawsuit and told readers they could "write to Suzuki expressing your concern regarding its punitive lawsuit." It also urged letters to General Motors Corp., which has a 20% stake in Suzuki, and gave the names and addresses of top officers.

George Bell, Suzuki's managing counsel, called the column highly inappropriate.

Suzuki, looking to become a bigger player in the U.S. automotive market, plans to introduce two new sport-utility vehicles in the next couple of years, part of an ambitious plan to triple U.S. sales by 2007.

Through June, Suzuki's U.S. sales were up 23.3% from the same period last year, according to Autodata Corp. The company's current lineup includes the Verona midsize sedan, Forenza premium compact sedan and Vitara sport-utility vehicle. It introduced its latest new vehicle, the Forenza Wagon, in April at the New York International Auto Show.


Previous
Consumer Reports asks readers to come to its aid
Upcoming column urges readers to write Suzuki, General Motors to express concern over lawsuit that accuses magazine of doctoring SUV road tests. 02.06.04

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Federal judge tosses suit challenging magazine's product review

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Muzzling the watchdogs: The high cost of consumer advocacy
By Ken Paulson Supreme Court's decision not to block Suzuki's lawsuit against Consumer Reports could put other consumer publications in line of fire. 11.09.03

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