Photo: blog.cleveland.com
This isn’t, by far, the first time when a carmaker agrees to buy back a massive numbers of vehicles as part of a troubled recall campaign. However, when Fiat Chrysler announced they were making this offer for around 200,000 of the total of 500,000 Ram pickup trucks involved in multiple recalls, you know we’re in for what is probably the biggest such campaign we’ve seen to date.
The carmaker has turned to this measure following an agreement with the NHTSA that is here to settle the massive issues encountered by their vehicles - it’s not just Rams we’re talking about.
About half a million Jeeps, Grand Cherokees ZJs from the 1993 to the 1998 model years, will be targeted by a trade-in offer with extra benefits. If owners refuse, Chrysler will repair the vehicles.
Aside from the buy-back offer, FCA is facing a civil fine of up to $105 million, which also makes for a record.
The vehicles will be repurchased by the company “at a price equal to the original purchase price less a reasonable allowance for depreciation plus ten percent”. The problem mainly affects the following Ram models - 2008 through 2012 chassis cab, 2009 through 2011 light duty and 2008 through 2012 heavy duty.
As for the Jeeps, these are facing a fire risk. The problem lies in the positioning of their fuel tanks. These are place aft of the rear axle, which means they can easily rupture during a crash, which can lead to a gas spill.
The problem is serious, with 75 people having been killed in fire-related accidents. Nevertheless, Fiat Chrysler explains these cars offer a similar level of protection to competing vehicles from that time.
FCA and the NHTSA have reached an agreement that targets a total of 23 recalls covering over 11 million vehicles.
As for the Jeep issue, the action will bring customers into showrooms, so it is expected to generate sales.
About half a million Jeeps, Grand Cherokees ZJs from the 1993 to the 1998 model years, will be targeted by a trade-in offer with extra benefits. If owners refuse, Chrysler will repair the vehicles.
Aside from the buy-back offer, FCA is facing a civil fine of up to $105 million, which also makes for a record.
The issues
The Ram pickup trucks are suffering from faulty steering systems, which can cause drivers to lose control. The company had tried to fix these problems, but the repairs haven’t completely eliminated the issues, which brings us to the current situation. And with Rams being the company’s best-sellers, the image of the carmaker is also at stake here.The vehicles will be repurchased by the company “at a price equal to the original purchase price less a reasonable allowance for depreciation plus ten percent”. The problem mainly affects the following Ram models - 2008 through 2012 chassis cab, 2009 through 2011 light duty and 2008 through 2012 heavy duty.
As for the Jeeps, these are facing a fire risk. The problem lies in the positioning of their fuel tanks. These are place aft of the rear axle, which means they can easily rupture during a crash, which can lead to a gas spill.
The problem is serious, with 75 people having been killed in fire-related accidents. Nevertheless, Fiat Chrysler explains these cars offer a similar level of protection to competing vehicles from that time.
FCA and the NHTSA have reached an agreement that targets a total of 23 recalls covering over 11 million vehicles.
How FCA plans to minimize the consequences of having to handle these older problems
Yes, FCA has agreed to the terms mentioned above, but they’re planning to reduce a part of the loss. When it comes to the Ram pickup trucks, the law allows the carmaker to repairs these vehicles and resell them.As for the Jeep issue, the action will bring customers into showrooms, so it is expected to generate sales.
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