Daily Car News Bulletin for May 9, 2016

• Legal blow for key dealer-performance metric

New York highest court has ruled against GM, as they violated state law by trying to cancel Chevrolet franchise for sub-par sales. A ruling that could force automakers to alter how they measure retailers’ sales performance is centered on GM’s use of a benchmark called the retail sales index(RSI), its version of a commonly used metric that has become a flashpoint between dealers and automakers. Dealers believe the system is unfair because it measures them against a state average but fails to account for market nuances.

• Takata braces for a loss; more Honda recalls ahead?

Takata will post a $120 million dollar loss for the year, ending March 31-st. Previously company estimated profit of $46 million dollars. The loss is due to a number large of recalls of faulty air bag inflators, more than 50 million worldwide. Honda plans to recall additional 20 million Takata airbags.

• Dodge Journey callback

Recall of 11,000 Dodge Journey’s crossovers in U.S. Recall is focused on 2009-2016 models that are equipped with optional block heaters, causing power stirring fluid to leak into engine startup and making steering a lot more difficult.

• Uber, Lyft lose in Austin

Uber and Lyft is suspending operations in Austin, Texas today. Customers asked for the measure of requiring fingerprint background check for their drives.

• GM’s ‘proactive’ parts alerts

GM developed a proactive alert system that can tell you beforehand which part needs replacement before your dashboard light appear and gets you stranded on the road. A combination of sensors and software that keeping an eye on the health of the 3 vital components, the battery, starter and fuel pump. It is a free diagnostic tool that comes with a regular package on 2016 models upon request, including Caddilac Escalade and Chevrolet Corvette.