Government: Fiat Chrysler Must Offer to Buy Back 500,000 Pickups

Government: Fiat Chrysler Must Offer to Buy Back 500,000 Pickups

Quote :

DETROIT (AP) — Fiat Chrysler must offer to buy back from customers more than 500,000 Ram pickup trucks in the biggest such action in U.S. history as part of a costly deal with safety regulators to settle legal problems in about two-dozen recalls.

The trucks, which are the company's top-selling vehicle, have defective steering parts that can cause drivers to lose control, and some previous repairs have been unsuccessful. So to get them off the roads, Fiat Chrysler agreed to the buyback, according to the National Highway Traffic Safety Administration. Owners also have the option of getting them repaired, the agency said in documents released Sunday.

Also, owners of more than a million older Jeeps with vulnerable rear-mounted gas tanks will be able to trade in their vehicles for more than market value or be paid to get them repaired, the agency said in a statement. The Jeeps' fuel tanks are behind the rear axle and have little to shield them in a rear crash. They can rupture and spill gasoline, setting the vehicles on fire. At least 75 people have died in crash-related fires, although Fiat Chrysler maintains they are as safe as comparable vehicles from the same era.

More at Associated Press

That's gonna be a financial burden for FCA. Add to that a slowing global economy.

With all the issues, I didn't think Ram was "best in class" before but now it's even more clear.

Depending on the specifics it may not be all bad news. There appear to be stipulations of this to provide affected owners a cash incentive on a trade or to buy back some vehicles entirely, likely current market value. Nothing like moving some new metal in the midst of such for both Jeeps and Ram's.

GM dangled some of the same during the ignition recall.

The bad in this case, the NHTSA claims deaths associated to rear mounted gas tank in Jeeps at 75, the Center for Auto Safety claims 187 deaths.

Mind you a couple well placed 155mm shells in any of our war theaters could have the same effect near instantly. Or other perspective, in 2013 there were 32,719 automotive related deaths in the US.

No wonder Sergio was looking for a merger with GM recently, was looking for someone to fund FCA's pent up recall announcements.

Don't forget there was the 150 million they were to pay to the family of the 4 year old who burned to death. Other families to come.

Sounds like a government shakedown to me. The Grand Cherokee met all applicable safety standards at the time it was built. From a USA Today article ....

"Chrysler has data showing the death rate in the disputed Jeeps from fires in rear crashes is not significantly higher than for other SUVs of the period. And it has charted some two dozen vehicles with higher death rates that haven't been recalled."

I have no illusions about FCA- they're in it to make money but I trust the government even less. From a September 1999 Car and Driver piece ...

'Airbags Kill More Kids Than School Shootings'
http://www.caranddriver.com/columns/airbags-kill-more-kids-than-school-shootings

Maybe the real question should be- "Who regulates the regulators?"