The Lemon Index reflects only those disputes that are not resolved prior to a decision by an arbitrator. The Lemon Index is based on data the auto manufacturers submit to California agencies. The Index includes only car companies that sold over 10,000 new autos in the state during 1999 and also offer arbitration programs certified by California's Department of Consumer Affairs for resolving disputes. Together, those manufacturers sold 1,257,418 new autos, or 67% of the 1,861,671 new vehicles purchased in California last year. Kia, ranked nearly worst in 1997 and worst in 1998, no longer offers a certified program in California, thus evading inclusion in the Lemon Index.

Toyota is the largest-selling manufacturer in California that fails to offer a certified arbitration program. Toyota does offer a program, but it is not certified for fairness. In the past, a Department of Consumer Affairs survey found that Toyota's program was considered unfair by 80% of the consumers who used it in an attempt to gain relief.

Lawmakers and consumer groups urged passage of legislation to improve protection for auto lemon owners under California's auto lemon law.

"No one should have to risk their life-or their family's lives-over and over again," said Senator Byron Sher (D-Palo Alto), author of SB 1718, designed to tighten protection under California's lemon law when consumers are sold vehicles with life-threatening safety defects.

"California, once a leader in lemon law protection, has fallen behind other states," said Assembly Majority Leader Kevin Shelley (D-San Francisco), co-author of SB 1718. "It is time for California to join the mainstream in protecting consumers from unsafe cars, and protecting small businesses and working people from faulty products."

"The Lemon Index helps consumers sort the lemons from the peaches," said Rosemary Shahan, President of Consumers for Auto Reliability and Safety, sponsors of SB 1718. "Some auto manufacturers are putting the squeeze on lemon owners," said Dan Jacobson of CALPIRG, the California Public Interest Research Group.