What you need to know about Chrysler’s forced buy-backs
After acknowledging it violated provisions of the Motor Vehicle Safety Act, Fiat Chrysler Automobiles has agreed to pay a record fine and to buy back thousands of defective vehicles from owners.
On Sunday, the U.S. Department of Transportation Secretary Anthony Foxx announced Fiat Chrysler agreed to pay $105 million for its mishandling of 23 safety recalls that affect roughly 11 million problematic vehicles. It is the largest civil fine ever imposed by the Department’s National Highway Traffic Safety Administration.
The news affects about half a million Ram pickups from model years 2012 to 2014. The affected vehicles have defective suspension parts that can cause the vehicle to lose control.
The company’s fine includes $20 million that will be used to fix drivers’ vehicles or to offer them a cash incentive to get rid of the car.
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In addition to the pickup problem, Chrysler will also recall over a million Jeep Grand Cherokee vehicles from 1993 to 2007 model years with rear-mounted gas tanks that are prone to fires, according to the NHTSA. The problem has been linked to about 75 crash-related deaths.
According to information provided by the NHTSA, Jeep Grand Cherokee owners that receive a recall notice can get a $100 gift card. Some Grand Cherokees can be traded in for $1,000 more than the vehicle’s fair market value.
On its website, the company claims 60 percent of affected vehicles have been repaired. Chrysler is allowed to repair and resell any of the trucks that it buys back.
Chrysler has admitted to violating three provisions of the Motor Vehicle Safety Act, issuing an effective and timely recall, notifying vehicle owners and dealers, and notifying the NHTSA.
Bob O’Koniewski, executive vice president of the Massachusetts State Automobile Dealers Association, recommends consumers who are concerned about the safety of their vehicles should do some research online to see how the recall affects them.
“Consumers can help themselves by either checking the NHTSA or Chrysler website,’’ said O’Koniewski. “NHTSA has created national search engine that consumers can utilize if there are open recalls on vehicles.’’
In a statement, Fiat Chrysler said, “We also accept the resulting consequences with renewed resolve to improve our handling of recalls and re-establish the trust our customers place in us.’’
To find out if your vehicle has been affected by the recall, check your VIN on the NHTSA or Chrylser website.
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