Electric Cars

Former President Trump has voiced a strong interest in introducing Japan's distinctive Kei cars to the American automotive landscape. During a briefing concerning the easing of fuel efficiency standards, Trump lauded these miniature vehicles, referring to them as "really cute" and drawing parallels to the classic Volkswagen Beetle. He has explicitly directed the Secretary of Transportation to expedite the approval process for their production and sale within the United States. This initiative, however, confronts considerable regulatory complexities.

Kei cars, characterized by their compact dimensions and restricted engine displacement and power output, are designed to meet specific Japanese governmental regulations. While they hold a niche following in the U.S., their inherent size and safety specifications diverge significantly from American automotive standards. Secretary of Transportation Sean Duffy confirmed receiving the directive to streamline regulations, stating that "the deck has been cleared" for manufacturers like Toyota to produce and sell smaller, more fuel-efficient cars in America. Yet, the specific federal regulations slated for modification to accommodate Kei car manufacturing in the U.S. have not been clearly delineated.

A primary impediment to the widespread adoption of new Kei cars in the United States lies within the Federal Motor Vehicle Safety Standards (FMVSS). This extensive document, spanning 1,400 pages, details intricate design and safety requirements for vehicles sold in the country. It covers everything from structural integrity during collisions to the precise movement of a steering wheel upon impact. Kei cars, by design, typically do not conform to these rigorous safety mandates. While certain specialized vehicles, such as track-only models, bypass these regulations, their limited road legality in most states underscores the challenge.

Beyond federal guidelines, individual states also impose their own vehicle registration criteria, often mandating adherence to FMVSS for new cars. Although some states permit the use of non-compliant vehicles, like golf carts, on public roads with specific limitations, a blanket approval for Kei cars would necessitate a comprehensive overhaul of existing laws. As of the time of reporting, the federal safety standards have not been officially altered to reflect Trump's recent directive, with the last update occurring in March. Attempts to gather further clarification from the transportation secretary's public affairs office yielded a request for emailed inquiries, indicating the ongoing nature of this policy discussion.

A recent class-action lawsuit has cast a shadow over BMW, targeting several of its popular XDrive-equipped models for an alleged drivetrain defect. Owners claim their vehicles exhibit jerking and shuddering, particularly during slow turns or light acceleration, stemming from faulty transfer cases that improperly distribute torque. This legal challenge, filed in the U.S. District Court for the District of New Jersey, accuses BMW of North America and its German parent company of selling vehicles with these inherent problems, undermining the brand's reputation for precision engineering and leaving owners with substantial repair costs.

The plaintiffs' case is bolstered by an internal BMW service bulletin from May 2020, which acknowledges complaints of driveline instability in certain XDrive vehicles and suggests issues with transfer case oil quality. This bulletin was reportedly updated in March 2025 to include a wider range of models, further indicating BMW's awareness of the widespread nature of the problem. Despite these internal communications, the lawsuit asserts that BMW continued to market and sell these vehicles without informing consumers of the potential defects. This alleged lack of transparency has resulted in owners bearing the burden of diagnosing the problem and covering costly repairs themselves, often outside of warranty coverage, for what they believed was a maintenance-free component due to BMW's 'lifetime-filled' fluid claims.

The financial implications for affected BMW owners are considerable, with transfer case fluid replacements ranging from $250 to $1,300 and full transfer case replacements potentially costing between $7,000 and $13,000. The lawsuit highlights a critical disparity in warranty coverage, noting that while new vehicles might receive repairs under the New Vehicle Limited Warranty, certified pre-owned (CPO) vehicles and those under extended service contracts often do not. This situation forces many owners of CPO vehicles, who typically expect factory-level reliability, to pay for repairs out-of-pocket, creating frustration and eroding brand loyalty. As this property damage product liability case proceeds, demanding compensation for repairs, diminished vehicle value, and other damages, BMW faces increasing pressure to address these issues and restore consumer trust.

This ongoing legal battle serves as a crucial reminder for all manufacturers of their ethical obligations to consumers. Maintaining transparency, even in the face of potential design flaws, is paramount for upholding brand integrity and ensuring customer satisfaction. In the automotive industry, where safety and reliability are non-negotiable, proactive communication and genuine commitment to resolving issues, rather than relying on legal defenses, ultimately foster a stronger, more trusting relationship between a brand and its clientele. This case underscores the importance of corporate responsibility and its profound impact on consumer confidence and loyalty in a competitive market.