![](\"https:\/\/www.planinsurance.co.uk\/wp-content\/uploads\/2020\/01\/Grant-150x150.png\")
<\/div>\nGrant Georgiades<\/p>\n
Grant Georgiades is Managing Director of Plan Insurance Brokers and a CII-qualified insurance professional, with over 20 years experience in commercial insurance and business management.<\/p>\n<\/div>\n<\/div>\n
We\u2019ve delved into the shadows of the motor trade industry\u2019s history and found that there are more controversies than we realised.<\/h3>\n
In no particular order, here are a few that shocked, scared and surprised us in equal measure.<\/p>\n
The Car Finance Scandal \u2013 the latest chapter in motoring\u2019s messy past<\/strong><\/h3>\nIt seems the motor trade has a knack for generating negative headlines. Fast forward to today, and we\u2019re in the middle of another storm, this time over car finance mis-selling<\/strong>. The Financial Conduct Authority (FCA)<\/strong> reckons lenders could face a staggering \u00a311 billion bill<\/strong> for unfair commission deals, making it the biggest redress since the PPI debacle.<\/p>\nDealers once earned higher commissions by varying customers\u2019 interest rates, something the FCA has now ruled unlawful. Millions of agreements are under review, and the resulting payout programme could reshape how car finance is sold across the UK.<\/p>\n
The scandal\u2019s scale easily earns it a spot among the industry\u2019s most infamous moments.<\/p>\n
Fire in the hole! \u2013 or rather, the tyres.<\/h3>\n
Blow-outs of the Firestone tyres on the Ford Explorer (2000)<\/strong> caused the SUV to flip over and resulted in many fatal crashes \u2013 the faulty tyres are believed to have caused approximately\u00a0200 people\u2019s deaths.<\/p>\nThe Explorer\u2019s stability was under scrutiny from the start due to unimpressive handling and poor on road test results. But it was billed in showrooms as a \u2018rugged and reliable family vehicle\u2019. \u00a0As more and more vehicles started to flip, recalls were made by both Ford and Firestone, and after many disputes the two companies ended their long running partnership.<\/p>\n
Back to the\u2026 Fridge<\/h3>\n
DeLorean set out to build a car that no one had built before. New looks and new functions\u00a0all\u00a0bank rolled by the British Government. John Z DeLorean<\/strong> had been a rising star of the motor trade after a successful period with General Motors before leaving to build his dream car.<\/p>\nHowever, due to the lack of sales of the stainless-steel sports car, the company soon saw financial troubles and legal problems. It was argued that when DeLorean was arrested and charged in 1982 for conspiracy in a $24 million cocaine deal, he was doing it to try and save his beloved business.<\/p>\n
The car\u2019s infamous role as Marty McFly\u2019s time machine in Back to the future<\/em> didn\u2019t help save the business \u2013 but it did at least\u00a0cement his creation in pop-culture history.<\/p>\nSpielberg had originally planned to use an old refrigerator instead of a car, but had changed his mind at the last minute. (The director liked the DeLorean\u2019s futuristic look, but more than that he was worried that young fans of the movie might accidentally get stuck in refrigerators and freezers while playing make-believe.)<\/em><\/p>\nRead more: 5 Fails of Servicing your vehicle \u2013 and how to avoid them<\/a><\/h6>\nThe cars that never came\u2026<\/h3>\n
1948 saw Preston Tucker\u2019s bold futuristic car design come to life \u2013 for a little while. Tucker advertised and campaigned nationally in the U.S. to see his design off the ground, taking down payments on cars and selling accessories to customers of cars that hadn\u2019t even been built.<\/p>\n
The lack of financial funds for the business was the cause of the Tucker fraud charges<\/strong>, as the car\u2019s production was set back, and set back, and set back. The company was eventually shut down, and Tucker as well as the board of directors were charged with fraud. At the time this was a high profile, national scandal.<\/p>\nThe car itself was quite innovative for its time \u2013 taking into consideration advanced passenger safety features such as a padded dashboard, reinforced safety shell and shatterproof windshield. But only 51 were built, and they are now among the most sought-after classic cars on the planet.<\/p>\n
To be or not to be \u2013 that was Ford\u2019s question<\/h3>\n
The Ford Pinto recall <\/strong>is one of the most shocking scandals in the motor trade history. Although a major success after being introduced in 1971 (selling over 320,000 cars in the first year) the Pinto had a major flaw in the event of a rear-end crash.<\/p>\nThe fuel tank could get punctured, resulting in the passenger compartment getting sprayed with fuel and igniting. But the worst part was that Ford new about it. And it was decided that it would be too expensive to fix. A leaked memo from the company in 1973 outlined guesses as to how many deaths to expect per year vs. how much it would cost to either fix the problem, or pay out the lawsuits for the estimated death toll.<\/p>\n
Eventually in 1978 Ford recalled 1.5 million of the vehicles \u2013 but not after the damage was done. As many as 900 people died due to the Ford Pinto\u2019s major flaw. The fact Ford were made to\u00a0pay hundreds of $millions in civil lawsuits was probably very little consolation to the loved ones of their victims.<\/p>\n
Read more: The Motor Trade Diaries<\/a><\/h6>\nVolkswagen<\/h3>\n
Dealers once earned higher commissions by varying customers\u2019 interest rates, something the FCA has now ruled unlawful. Millions of agreements are under review, and the resulting payout programme could reshape how car finance is sold across the UK.<\/p>\n
The scandal\u2019s scale easily earns it a spot among the industry\u2019s most infamous moments.<\/p>\n
Fire in the hole! \u2013 or rather, the tyres.<\/h3>\n
Blow-outs of the Firestone tyres on the Ford Explorer (2000)<\/strong> caused the SUV to flip over and resulted in many fatal crashes \u2013 the faulty tyres are believed to have caused approximately\u00a0200 people\u2019s deaths.<\/p>\n The Explorer\u2019s stability was under scrutiny from the start due to unimpressive handling and poor on road test results. But it was billed in showrooms as a \u2018rugged and reliable family vehicle\u2019. \u00a0As more and more vehicles started to flip, recalls were made by both Ford and Firestone, and after many disputes the two companies ended their long running partnership.<\/p>\n DeLorean set out to build a car that no one had built before. New looks and new functions\u00a0all\u00a0bank rolled by the British Government. John Z DeLorean<\/strong> had been a rising star of the motor trade after a successful period with General Motors before leaving to build his dream car.<\/p>\n However, due to the lack of sales of the stainless-steel sports car, the company soon saw financial troubles and legal problems. It was argued that when DeLorean was arrested and charged in 1982 for conspiracy in a $24 million cocaine deal, he was doing it to try and save his beloved business.<\/p>\n The car\u2019s infamous role as Marty McFly\u2019s time machine in Back to the future<\/em> didn\u2019t help save the business \u2013 but it did at least\u00a0cement his creation in pop-culture history.<\/p>\n Spielberg had originally planned to use an old refrigerator instead of a car, but had changed his mind at the last minute. (The director liked the DeLorean\u2019s futuristic look, but more than that he was worried that young fans of the movie might accidentally get stuck in refrigerators and freezers while playing make-believe.)<\/em><\/p>\n 1948 saw Preston Tucker\u2019s bold futuristic car design come to life \u2013 for a little while. Tucker advertised and campaigned nationally in the U.S. to see his design off the ground, taking down payments on cars and selling accessories to customers of cars that hadn\u2019t even been built.<\/p>\n The lack of financial funds for the business was the cause of the Tucker fraud charges<\/strong>, as the car\u2019s production was set back, and set back, and set back. The company was eventually shut down, and Tucker as well as the board of directors were charged with fraud. At the time this was a high profile, national scandal.<\/p>\n The car itself was quite innovative for its time \u2013 taking into consideration advanced passenger safety features such as a padded dashboard, reinforced safety shell and shatterproof windshield. But only 51 were built, and they are now among the most sought-after classic cars on the planet.<\/p>\n The Ford Pinto recall <\/strong>is one of the most shocking scandals in the motor trade history. Although a major success after being introduced in 1971 (selling over 320,000 cars in the first year) the Pinto had a major flaw in the event of a rear-end crash.<\/p>\n The fuel tank could get punctured, resulting in the passenger compartment getting sprayed with fuel and igniting. But the worst part was that Ford new about it. And it was decided that it would be too expensive to fix. A leaked memo from the company in 1973 outlined guesses as to how many deaths to expect per year vs. how much it would cost to either fix the problem, or pay out the lawsuits for the estimated death toll.<\/p>\n Eventually in 1978 Ford recalled 1.5 million of the vehicles \u2013 but not after the damage was done. As many as 900 people died due to the Ford Pinto\u2019s major flaw. The fact Ford were made to\u00a0pay hundreds of $millions in civil lawsuits was probably very little consolation to the loved ones of their victims.<\/p>\nBack to the\u2026 Fridge<\/h3>\n
Read more: 5 Fails of Servicing your vehicle \u2013 and how to avoid them<\/a><\/h6>\n
The cars that never came\u2026<\/h3>\n
To be or not to be \u2013 that was Ford\u2019s question<\/h3>\n
Read more: The Motor Trade Diaries<\/a><\/h6>\n
Volkswagen<\/h3>\n