Do not put your faith in what statistics say until you have carefully considered
what they do not say.
-William W. Watt
Mr. Watt gives us good advice and I have looked at what my few small charts
show and I do understand what they do not show. To really get into the
connections between the number of
Lemon Law cases and the number of vehicles sold by each manufacturer in a given year might
make an interesting book. One could connect manufacturing technology,
quality of process, quality of materials, the attitude of manufacturers
and their dealers to consumers, unions, the effect of the quarterly report
and how it drives sales, the legal ramifications of building and selling
defective vehicles and on and on.
Defective vehicles and improperly manufactured devices are a serious concern
to the consumer that can constitute fraud. If you or a loved one have
purchased a vehicle that did not maintain the standard that you expected,
you may have been sold a lemon. Thankfully, we're here to represent
Statistics are interesting provided they show something startling or prove
something your intuition suggested was a fact, but that hadn’t been
proved. For example: I know, that’s know, not think, that as a country
and as individuals we are prisoners of our national business model. As
prisoners, we are punished over and over and we feel it in that place
of enduring pain, our wallets.
After spending some years teaching TQM [Total Quality Management-Deming]
and SPC [Statistical Process Control], I came to the understanding that
manufacturing high quality components [there are on the order of 15,000
components in the average modern automobile] is subject to considerable
variation, even in the absence of the human element. That variation in
the manufacture of components, the variation in the processes of assembly
of those components, the variation in materials practically guarantees
that a surprising percentage of all vehicles manufactured are going to
result in the assembly of a Lemon Automobile. By Lemon I mean a vehicle
that meets the legal tests of the various state’s
Lemon Laws. The question then becomes, why does one manufacturer who produces a million
vehicles produce 5% lemons and another manufacturer who also makes a million
vehicles, produce less than 1% lemon vehicles. That’s an extraordinary
difference. That means the first manufacturer made 50,000 lemons and the
other made less than 10,000 lemon vehicles.
I think I know the answer and I am betting those of you who read this also
have good ideas of your own. What I wanted to do here is show, very directly,
that there is a correlation between manufacturing skills, manufacturing
quality and the number of defective vehicles-lemons-produced by specific
manufacturers. It is, I think, a good idea to temper statistics with common
sense and the skilled use of the best computer available-the one between
Statistics are no substitute for judgment
-Henry Clay American Statesman, 1777-1852
Figure 1 : Car & Light Truck Sales in the US for 2007
As you have noted these are sales, not production numbers. When one looks
at production it will be seen that GM and Toyota are very close in total
production. The reason we include production numbers is that showing the
percentage of lemon law cases by manufacturer we had during 2007 is interesting
but not nearly as telling as when these percentages are compared to numbers
of specific makes produced.
Look at Figure 2. Assume for a moment that the total number of lemon law
cases for 2007 was 1,000. Now look at the percentages for GM and Toyota.
For roughly the same number of vehicles produced, there were 166 GM cases
and 35 Toyota lemon law cases. Think about this in terms of money, dollars
and cents. Remember, GM is in so much trouble it is closing plants and
making serious efforts to get costs under control. Toyota is not closing
plants, they are in fact, steadily increasing production and market share.
As an American this &^^&%& me off.
Figure 2 : Percentages of Lemon Law Cases by Vehicle Manufacturer 2007
Let’s have one more comparison to really make the point. Look at
Mercedes. Their percentage of our total lemon law cases last year was
14%. That would be 140 cases based on my proposed 1,000 total cases. Now,
let’s pop back up to Figure 1. We note that their total sales were
226,003 vehicles. I got the production numbers from a reliable source
on the Internet.
The higher the percentage of lemon law cases for the smaller number of
vehicles sold is the key point of these statistics. It is an indication
that something is seriously wrong. It would be well to remember that we
are but one Lemon Law firm among many all across the country. Country
wide I am sure that there are differences in percentages by make. For
example, while I do not know this as a fact, I would guess that more pickup
trucks are sold in Alabama than Mercedes Benz. Buying habits differ. However,
I doubt there would be much difference if these case statistics were from
a sample that included all the lemon law firms in the US. Therefore, while
only two basic statistics were used, they are in fact very revealing.
I leave it to you, the reader to think about the possibilities.
Because I am an engineering-quality person by training, one key thing repeats
over and over to me.
It costs a lot to make bad products.
Do you believe an auto manufacturer may have violated lemon laws and sold
you a product that was not up to par? You may have a legal case! Speak
with a dedicated lemon law attorney from Norman Taylor & Associates
to find out what your options may be!