If you own a Chrysler truck or SUV you may be in for a big surprise. The National Highway Traffic Safety Administration (NHTSA) slapped Fiat Chrysler Automobiles (FCA) with huge fines for failing to properly administer recalls and repairs for certain trucks and SUVs it manufactured.
But in addition to the multimillion dollar penalties FCA must pay, it will be required to buy back these lemons from customers. The value of these vehicles will be determined after accounting for reasonable depreciation.
The NHTSA said that the fines and penalties against FCA were due to 23 suspicious recall campaigns.
The PenaltiesThe government said that FCA must pay $70 million in punitive damages, spend $20 million to improve its safety programs, and a penalty of $15 million more if FCA fails to uphold its end of the settlement, with the government, in a timely manner.
Some of the safety program money will be used to buy back lemons. Some of it will be used to fund $100 gift cards to affected FCA vehicle owners to get their vehicles fixed for free, and $1000 bonus money for trading in certain Jeep Cherokees.
So how many affected FCA vehicles are eligible for the buyback program? Try 579,000 vehicles on for size.
Jeep Fire Traps1998 Jeep Grand Cherokees had a faulty design in which the gas tank was placed behind the rear axle. This configuration is a safety hazard because during a severe rear impact, the gas tank can explode into flames.
Manufacturers, who place the gas tank where the rear axle is, position the tank in front of the axel to protect the gas tank. The Jeep Cherokees did not have this safety feature. There have been more than 70 people who were killed in older model Jeeps due to this engineering error.
FCA says that it will try to fix these problems by attaching a trailer hitch in front of the gas tank to protect it. But Ron Melancon, who runs the website dangeroustrailers.org, feels this is an unsafe solution. He stated to the Detroit Free Press:
“It’s going to be a spear. It is going to go through people’s vehicles.”
Which Vehicles Will FCA Buy Back?The vehicles that are eligible for a buyback from FCA, according to International Business Times are:
“ * 2008 to 2012 model-year Ram pickup trucks that have either steering problems or axle problems, or both.
“ * 2008 to 2012 Ram 4500 and 5500 super duty pickup trucks (about nearly 36,000) for steering problems;
“ * 2009 to 2011 Dodge Dakota trucks for axle problems;
“ * 2009 Dodge Durango and Chrysler Aspen SUVs for axle problem.”
Source:
International Business Times