Sears Expected to Settle Auto Repair Charges : Retailing: The agreement is likely to involve reimbursing unhappy customers. It may allow the company to continue to fix cars in California.

Sears, Roebuck & Co. is expected to announce today that it will reimburse unhappy customers under a settlement of charges that it systematically ripped off consumers at its 70 auto repair centers in California, The Times has learned.

The agreement is expected to allow Sears to remain in the auto repair business in California, where it is the largest single operator of repair shops. In return, Sears will compensate an undetermined number of California customers for unneeded or shoddy car repairs performed at its auto centers.

Further details of the settlement between the nation’s third-largest retailer and the state Department of Consumer Affairs were unavailable Tuesday.

The structure of the agreement is thought to be similar to one reached between Sears and New Jersey officials, where the company was also accused of ripping off consumers. In the New Jersey case, Sears agreed to satisfy unhappy New Jersey consumers and contribute to a consumer education fund administered by the National Assn. of Attorneys General.

Louis Bonsignore, spokesman for the California Department of Consumer Affairs, would not say whether a settlement was imminent. “We have had ongoing discussions with Sears, but we still do not have a signed settlement,” he said.

The department has scheduled a press conference for today in Sacramento, to be attended by representatives of the state attorney general’s office and Gov. Pete Wilson. The purpose of the press conference was not disclosed.

The department had been seeking revocation of Sears’ license to repair cars in California, a severe step that would have put the retailer out of the auto repair business in the state. That action resulted from an 18-month probe that found that Sears consistently charged undercover agents an average of $223 per visit for unneeded repairs.

Sears has repeatedly denied any wrongdoing and has maintained that the state’s investigation is flawed. In the wake of the scandal, however, Sears scrapped an incentive system that rewarded employees for selling certain parts. The state said the incentive system had prompted the abuse, and Sears later admitted that the incentives “created an environment where mistakes have been made.”

Sears eliminated commissions and quotas for mechanics and automotive sales people, paying them hourly wages. Previously, automotive employees were required to meet strict quotas on the sale of brake components, springs and shocks. Employees who did not meet the quotas could be fired.

The scandal has been costly to Sears. Not only has the company paid at least $200,000 to settle New Jersey charges, but it lost millions of dollars in revenue as consumers across the country stayed away from its auto centers.

In the weeks after the scandal, Sears said auto center sales were off 15% nationwide and 20% in California, and that consumer confidence in the store had measurably fallen.

Rather than inspire confidence, Sears and its “you can count on me” slogan inspired jokes on late-night talk shows. To repair the damage, Sears launched a costly television campaign featuring Chairman Edward A. Brennan.