Dear Interested Party: Enclosed is the 2016 Annual Statistical Report prepared by the Department of Consumer Affairs Arbitration Certification Program (ACP) using statistics provided by state-certified arbitration programs in accordance with Title 16, California Code of Regulations, Section 3399.4. The report consists of the following cumulative and individual tables for each state-certified arbitration program: Table A Summary of total disputes closed by the three state-certified arbitration programs – Better Business Bureau Auto Line (BBB), California Dispute Settlement Program (CDSP), and Consumer Arbitration Program for Motor Vehicles (CAP-Motors). Table B Statistics for total disputes closed by the BBB involving vehicles manufactured by Aston Martin, Audi, Bentley, BMW (includes Mini Cooper), Ferrari, Ford, General Motors, Hyundai/Genesis, Infiniti, Jaguar, Kia, Lamborghini, Land Rover, Lotus, Maserati, Mazda, Nissan, and Volkswagen. Table C Statistics for total disputes closed by CDSP involving vehicles manufactured by Toyota (includes Scion), Tesla Motors, and Fiat Chrysler Automotive US. Table D Statistics for total disputes closed by the CAP-Motors involving vehicles manufactured by Porsche.

Reported Disputes 2015 2016

Total Disputes Filed 2309 2561 Out of Jurisdiction 1119 1157 Mediated 500 482 Arbitrated 561 746 Withdrawn 129 176

Arbitrators’ Decision 2015 2016

Repair 70 49 Replacement/Repurchase 133 168 Reimbursement of Expenses 10 7 No Relief 345 517 Other* 3 4

*This category of remedies includes attorneys’ fees, reimbursement of monthly mortgage payments or extended service contracts coverage.

ARBITRATION CERTIFICATION PROGRAM 1625 North Market Blvd., Suite N112, Sacramento, CA 95834 P (916) 574-7350 F (916) 574-8638 www.LemonLaw.ca.gov

Possible factors that may have contributed to significant decreases or increases in 2016 are summarized below:

• The percentage of consumers and manufacturers electing to voluntarily mediate their claims continues to fall from 42% of eligible cases in 2015 to 34% of eligible cases in 2016. This continues to drive a steady increase in arbitrated cases

• Consumers receiving no relief returned to its historical average of around 69% of

arbitrated cases, following a one year dip to 61% of arbitrated cases in 2015

• An 11% percent increase in Total Disputes Filed as consumers learned about their manufacturer’s arbitration program through their dealerships, the manufacturer and personal research

• A 33% increase in Arbitrated cases as more consumers filed for arbitration and

pursued arbitration instead of voluntary mediation

• A 36% increase in Withdrawn cases as some consumers opted to hire an attorney or trade in their vehicle to resolve their warranty matter

• A 30% decrease in overall Repair Decisions as arbitrators awarded more

Replacement /Repurchase and No Relief decisions

• A 26% increase in overall Replacement/Repurchase Decisions as consumers presented cases that persuaded arbitrators to find in their favor

• A 50% increase in overall No Relief Decisions as arbitrators believed the alleged

defects did not rise to substantial nonconformities Thank you for your continued interest in California certified arbitration programs. If you have any questions or comments, please call the ACP at (916) 574-7350. Enclosures

Arbitration Certification Program STATISTICAL REPORT

Calendar Year 2016

May 2016

www.LemonLaw.ca.gov

Summary of Total Disputes* (All State-Certified Arbitration Programs)

Table A

*Data reflects cumulative total of all programs since 2001.

Table B

Statistics for Total Disputes by the BBB Auto Line Involving

Vehicles Manufactured by:

Aston Martin Audi

Bentley BMW (includes Mini Cooper)

Ferrari Ford

General Motors Hyundai Infiniti Jaguar

Kia Lamborghini Land Rover

Lotus Maserati Mazda Nissan

Volkswagen

Aston Martin’s Better Business Bureau Auto Line Breakdown of Total Disputes Filed

Audi’s Better Business Bureau Auto Line Breakdown of Total Disputes Filed

Bentley’s Better Business Bureau Auto Line Breakdown of Total Disputes Filed

BMW’s Better Business Bureau Auto Line Breakdown of Total Disputes Filed

Ferrari’s Better Business Bureau Auto Line Breakdown of Total Disputes Filed

Ford’s Better Business Bureau Auto Line Breakdown of Total Disputes Filed

General Motor’s Better Business Bureau Auto Line Breakdown of Total Disputes Filed

Hyundai’s Better Business Bureau Auto Line Breakdown of Total Disputes Filed

Infiniti’s Better Business Bureau Auto Line Breakdown of Total Disputes Filed

Jaguar’s Better Business Bureau Auto Line Breakdown of Total Disputes Filed

Kia’s Better Business Bureau Auto Line Breakdown of Total Disputes Filed

Lamborghini’s Better Business Bureau Auto Line Breakdown of Total Disputes Filed

Land Rover’s Better Business Bureau Auto Line Breakdown of Total Disputes Filed

Lotus Cars’ Better Business Bureau Auto Line Breakdown of Total Disputes Filed

Maserati’s Better Business Bureau Auto Line Breakdown of Total Disputes Filed

Mazda’s Better Business Bureau Auto Line Breakdown of Total Disputes Filed

Nissan’s Better Business Bureau Auto Line Breakdown of Total Disputes Filed

Volkswagen’s Better Business Bureau Auto Line Breakdown of Total Disputes Filed

Table C

Statistics for Total Disputes by the California Dispute Settlement Program

Involving Vehicles Manufactured by:

Tesla Toyota (Includes Scion)

FCA US –Alfa Romero, Chrysler, Dodge, Fiat, Jeep, and Ram

Tesla’s California Dispute Settlement Program Breakdown of Total Disputes Filed

Toyota’s California Dispute Settlement Program

Breakdown of Total Disputes Filed

FCA’s California Dispute Settlement Program

Breakdown of Total Disputes Filed

TABLE D

Statistics for Total Disputes by the Consumer Arbitration Program for Motor Vehicles

(CAP-Motors)

Involving Vehicles Manufactured by:

Porsche

Porsche’s Consumer Arbitration Program for Motor Vehicles Breakdown of Total Disputes Filed