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post #1 of 20 (permalink) Old 07-03-2015, 05:18 AM Thread Starter
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Exclamation Fiat Chrysler to Buy Back Pickups in Recall Deal

Fiat Chrysler faces recall sanctions
Regulators say automaker violated law in several cases


07/03/2015

WASHINGTON -- The chief U.S. auto safety regulator said Thursday that Fiat Chrysler will face sanctions for violating safety laws in multiple recalls.

National Highway Traffic Safety Administration chief Mark Rosekind said the agency will act before Labor Day and that the automaker will face enforcement action.

But Rosekind, speaking to reporters after a public hearing Thursday on Fiat Chrysler's handling of 23 recalls, wouldn't say more until a comment period closes on July 17.


Quote:
"There's a pattern that's been going on for some time," Rosekind said, referring to the automaker's conduct. "It's the law; this is what you're supposed to follow."

Rosekind said a number of options for agency action are "on the table."

Depending on how the agency rules, the company could face millions of dollars in fines and could be ordered to repurchase faulty vehicles, accounting for depreciation. The agency has authority to fine companies as much as $35 million per infraction, and could find several infractions in one recall. It's unlikely the maximum fine would be assessed on all counts.

Rosekind spoke after National Highway Traffic Safety Administration safety officials at the hearing painted an alarming picture of an automaker that repeatedly failed to provide correct information to the government, refused to carry out requested tests and botched recall repairs in a way that put consumers at risk.

"The evidence seems very straightforward," Rosekind said.

Responding to the testimony of the regulators and victims of safety defects, Fiat Chrysler safety chief Scott Kunselman didn't dispute the agency's allegations. He acknowledged that the automaker failed to execute the recalls properly. Fiat Chrysler has reorganized its safety operations so that he now reports directly to Chief Executive Officer Sergio Marchionne, Kunselman said.

"We have learned from our mistakes and missteps," he said.

Jennifer Timian, acting director of the National Highway Traffic Safety Administration's defect investigation office, accused the company of failing to provide timely and accurate recall data to the agency, and said customers also have problems getting accurate data.

Problems with the company, known as FCA US LLC, are widespread and involve slow response to vehicle defects that have caused deaths and injuries, Timian said.

The agency held the rare hearing to listen to evidence that Fiat Chrysler misbehaved on 23 recalls involving more than 11 million vehicles. The agency alleges that the company didn't notify car owners quickly enough, failed to make replacement parts or repairs fast enough, and didn't file paperwork on time in numerous instances.

The recalls involved problems as serious as rear-mounted gas tanks that can leak and cause fires in a crash, air bags that can explode with too much force and spew shrapnel, and ignition switches that can abruptly shut off, causing engines to stall. In one recall, a recommended fix didn't work.

In some cases, the agency has "tentatively concluded" that Fiat Chrysler violated the law. It will take written testimony for another 10 days and issue a ruling after that.

In one case, Fiat Chrysler delayed distribution of parts to fix a nut that can come loose from Ram truck drive shafts, said Scott Yon, chief of vehicle integrity for the agency. If the nuts come loose, the shaft can fall off the truck and the wheels can lock up. Owners were notified that parts were available in the fall of 2013, but the agency kept getting numerous complaints, he said.

"Although Chrysler reported that it had completed sending notices to owners in November of 2013 telling them parts were available and repairs could be completed, the NHTSA continued to receive owner complaints that parts could not be found," Yon said.

Fiat Chrysler reported three crashes and two injuries in the eight months after the recalls began. One owner complained in July of 2014 -- nearly seven months after the company said parts were available -- of being told by a dealer that there were no parts. Company records confirmed that parts were often back-ordered or restricted so dealers could repair only one vehicle per week, Yon said.

Fiat Chrysler already has admitted that it missed legal deadlines to notify customers in five recalls. Automakers must tell customers within 60 days after notifying the government about a recall. Four of the five misses were four days or less, but one was 12 days late, the company has said.

Witnesses testified about the recall of 1.56 million older Jeeps for rear-mounted gas tanks that are vulnerable in rear crashes. At least 75 people have died in post-crash fires involving the Jeeps, which include the 2003-2008 Libertys and 1993-1998 Grand Cherokees. The agency said Thursday that more than two years after the June, 2013 recall, Fiat Chrysler has repaired only 6 percent of the Grand Cherokees and 32 percent of Libertys.

Chrysler maintains the Jeeps are as safe as comparable SUVs built during the same years. It also said it has worked hard to reach owners of recalled vehicles.

In the Jeep case, it has tried 4.5 million times to reach owners, a spokesman said. Some of the Jeeps are 22 years old, and it's difficult to find owners through state registration databases because addresses may not exist, the company said.

The recall fix is installing a trailer hitch to protect the tanks in low-speed crashes.
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post #2 of 20 (permalink) Old 07-25-2015, 11:23 PM Thread Starter
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US to Hit Fiat Chrysler With Record $105M Fine

AP Source: US to Hit Fiat Chrysler With Record $105M Fine
Jul 26, 2015


The U.S. government will hit Fiat Chrysler with a record $105 million fine next week for violating laws in a series of vehicle safety recalls, a person briefed on the matter said.

The National Highway Traffic Safety Administration will reveal the fine on Monday. In addition, Fiat Chrysler will be required to buy back a group of recalled vehicles to get them off the roads, said the person, who didn't want to be identified because no official announcement has been made.

Fiat Chrysler, also known as FCA US LLC, also will agree to an independent monitor to review recalls.


Quote:
The company will make payments to owners of 1.56 million recalled older-model Jeeps with gas tanks behind the rear axle to bring them to dealers to install trailer hitches to help protect the tanks. The tanks are vulnerable and can leak gasoline if damaged in rear collisions. The company maintains the Jeeps are as safe as comparable vehicles built at the time, and it will not buy them back.

The news was first reported Sunday by The Wall Street Journal on its website.

The agency's actions come less than a month after it held a rare public hearing to detail problems with 23 Fiat Chrysler recalls covering more than 11 million cars and trucks. It's another sign that NHTSA is taking a much tougher stance against automakers that don't obey auto safety laws.

The fine beats the old record of $70 million assessed against Honda Motor Co. for lapses in recalls of air bags made by Takata Corp.

At the July 2 hearing, NHTSA detailed an alarming litany of shortfalls: failure to notify customers of recalls, delays in making and distributing repair parts, and in some cases failing to come up with repairs that fix the problems. Some of the recalls date to 2013.

After the hearing, NHTSA Administrator Mark Rosekind told reporters that Fiat Chrysler would surely be punished. "There's a pattern that's been going on for some time," he said.

During the hearing, Fiat Chrysler did not dispute any of NHTSA's allegations. Scott Kunselman, the company's head of vehicle safety, said it is changing the way it manages safety to follow the industry's best practices. The safety system, he said, has been reorganized with added personnel. He now reports directly to CEO Sergio Marchionne. Previously the person in his position was three rungs down the organization chart from the chief executive, he said.

"We have learned from our mistakes and missteps," he said.

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post #3 of 20 (permalink) Old 07-26-2015, 06:45 PM Thread Starter
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FCA US LLC Consent Order Response

FCA US LLC Consent Order Response

July 26, 2015 , Auburn Hills, Mich. -

FCA US LLC acknowledges the admissions in its Consent Order with the National Highway Traffic Safety Administration. 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. We are intent on rebuilding our relationship with NHTSA and we embrace the role of public safety advocate. Accordingly, FCA US has agreed to address certain industry objectives, such as identifying best practices for recall execution and researching obstacles that discourage consumers from responding to recall notices.

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post #4 of 20 (permalink) Old 07-26-2015, 06:47 PM Thread Starter
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LONDON, July 26, 2015 /PRNewswire/ --

FCA US LLC (FCA US) today announced it has entered into a consent order with the National Highway Traffic Safety Administration (NHTSA) which resolves the issues raised by NHTSA with respect to FCA US's execution of 23 recall campaigns in NHTSA's Special Order issued to FCA US on May 22, 2015 and further addressed at a NHTSA public hearing held on July 2, 2015. The consent order includes an admission by FCA US that in three specified campaigns it had failed to timely provide an effective remedy, and that it did not timely comply with various reporting requirements under the National Traffic and Motor Vehicle Safety Act of 1966.

Pursuant to the consent order, FCA US has agreed to make a $70 million cash payment to NHTSA and to spend $20 million on industry and consumer outreach activities and incentives to enhance certain recall and service campaign completion rates. An additional $15 million payment will be payable by FCA US if it fails to comply with certain terms of the consent order.

FCA US has also agreed to undertake specific actions to improve its recall execution. The consent order will be supervised by an independent monitor and will remain in place for three years subject to NHTSA's right to extend for an additional year in the event of FCA US' noncompliance with the consent order.


SOURCE FCA US LLC

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post #5 of 20 (permalink) Old 07-26-2015, 06:49 PM Thread Starter
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Fiat Chrysler to buy back 500,000 pickups in recall deal

Fiat Chrysler to buy back 500,000 pickups in recall deal

07/26/2015


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.

Both the Jeep and Ram measures are part of a larger settlement between the government and the automaker that includes a record $105 million penalty, appointment of an independent recall monitor and strict federal oversight. It’s another step in NHTSA’s effort to right itself, getting more aggressive with automakers after several slow responses to safety troubles.

Quote:
“Today’s action holds Fiat Chrysler accountable for its past failures, pushes them to get unsafe vehicles repaired or off the roads and takes concrete steps to keep Americans safer going forward,” Transportation Secretary Anthony Foxx said in the statement. The record civil fine, he said, puts automakers on notice that NHTSA will take action when recall laws aren’t followed.

NHTSA has been involved in vehicle buybacks in the past, but never one of this size. A buyback usually happens when a problem is so serious that it can’t be fixed and the vehicles need to be removed from service. The buyback and the Jeep trade-ins likely will cost Fiat Chrysler hundreds of millions of dollars or more. Fiat Chrysler Automobiles NV, which is technically based in the Netherlands but includes the Italian and U.S. companies, posted first-quarter net profit of $101 million.

The consent order that Fiat Chrysler agreed to requires it to notify vehicle owners who are eligible for buybacks and other incentives.

The agency’s actions come less than a month after it held a rare public hearing to detail problems with 23 Fiat Chrysler recalls covering more than 11 million cars and trucks. It’s another sign that NHTSA is taking a much tougher stance against automakers that don’t obey auto safety laws. 70 million and stuff.

The fine beats the old record of $70 million assessed against Honda Motor Co. for lapses in recalls of air bags made by Takata Corp.

In a statement, FCA US LLC said it accepted the consequences of the agreement “with renewed resolve to improve our handling of recalls and re-establish the trust our customers place in us.” The company said it wants to rebuild its relationship with NHTSA and identify and follow best industry practices for doing recalls.

Fiat Chrysler has to pay $70 million and must spend at least $20 million to meet performance requirements detailed in the agreement. Another $15 million could come due if the recall monitor finds any further violations.

At the July 2 hearing, NHTSA detailed a litany of shortfalls: failure to notify customers of recalls, delays in making and distributing repair parts and in some cases failing to come up with repairs that fix the problems. Some of the recalls date to 2013.

During the hearing, Fiat Chrysler did not dispute any of NHTSA’s allegations. Scott Kunselman, the company’s head of vehicle safety, said it is changing the way it manages safety to follow the industry’s best practices. The safety system, he said, has been reorganized with added personnel. He now reports directly to CEO Sergio Marchionne. Previously the person in his position was three rungs down the organization chart from the chief executive, he said.

“We have learned from our mistakes and missteps,” he said.

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post #6 of 20 (permalink) Old 07-27-2015, 01:01 PM Thread Starter
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Biggest Vehicle Buyback Ever

Fiat Chrysler forced into biggest vehicle buyback ever
July 27, 2015


The buy back program applies to the following vehicles:

278,229 vehicles recalled on February 6, 2013 because of a defect that may cause the axle to lock including the:

2009 model year Chrysler Aspen
2009 model year Dodge Durango
2009-2012 model years Dodge Ram 1500
2009-2011 model years Dodge Dakota


36,710 vehicles recalled on November 6, 2013 because of a defect that may cause the driver to lose steering power and crash:

2008-2012 model years Dodge Ram 4500
2008-2012 model years Dodge Ram 5500


265,057 vehicles recalled on November 6, 2013, to repair and replace steering linkages that may cause the driver to lose steering power and crash:

2008 model year Dodge Ram 1500
2008-2012 model years Dodge Ram 2500
2008-2012 model years Dodge Ram 3500


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post #7 of 20 (permalink) Old 07-27-2015, 02:08 PM Thread Starter
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FCA Clarifies Scope of Remedies in NHTSA Consent Order

FCA Clarifies Scope of Remedies in NHTSA Consent Order


July 27, 2015 , London, UK -

Certain press reports have misconstrued the scope and therefore the estimated costs of certain remedies contemplated by the consent order entered into by FCA US with NHTSA and announced today. FCA intends to clarify the scope of such remedies.

In the consent order, FCA US has agreed to additional remedies for three recall campaigns covering approximately half a million vehicles, primarily 2008 through 2012 chassis cab, 2009 through 2011 light duty and 2008 through 2012 heavy duty Ram Trucks. In each of those campaigns, FCA US will offer to owners whose vehicles have not yet been remedied, as an alternative remedy, to repurchase those vehicles at a price equal to the original purchase price less a reasonable allowance for depreciation plus ten percent. However, customers responding to the recall may continue to keep their vehicles and have them repaired in accordance with the original recall. As of this date, repairs have been completed on well over 60% of the subject vehicles, leaving less than two hundred thousand eligible vehicles. As is expressly provided for under the consent order, FCA intends that any vehicles repurchased will be remedied and resold.

In addition, FCA US is offering consumer incentives to encourage owners of vehicles subject to the structural reinforcement campaign to participate in the campaign. With respect to the 1993 through 1998 Jeep Grand Cherokee ZJs, FCA US is also offering to increase the trade-in allowance to be applied to the purchase of another FCA product, service or parts for those owners of these very old vehicles who would prefer this alternative over the installation of a trailer hitch.

All premiums paid to repurchase vehicles in the three recall campaigns and customer incentives will be applied as credits to the $20 million that FCA US has agreed to spend on industry outreach amounts included in the $105 million referred to in the consent order.

While such amounts may exceed the $20 million, contrary to certain reports, FCA US does not expect that the net cost of providing these additional alternatives will be material to its financial position, liquidity or results of operations.

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post #8 of 20 (permalink) Old 07-27-2015, 07:07 PM Thread Starter
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$1,000 on trade-ins of 1993 to 1998 model-year Jeep Grand Cherokees

Fiat Chrysler will also offer $1,000 on trade-ins of 1993 to 1998 model-year Jeep Grand Cherokees. Owners can also apply the money to service on other FCA vehicles they might own. FCA says more than 1 million Jeeps need to be fixed for a fire risk linked to the position of the vehicle’s gas tank. NHTSA and Fiat Chrysler have clashed for years over the gas-tank issue affecting 2.7 million Jeeps.



Quote:
More than 70 people have been killed in fires involving rear-end collisions in these older Jeeps. FCA is facing dozens of lawsuits over the fires. In April, a Georgia jury awarded $150 million to the family of Remington Walden, 4, who burned to death in a rear-ended 1999 Jeep Grand Cherokee. FCA is fighting the verdict and says it’s willing to pay $4 million for wrongful death and $1 million for pain and suffering, according to the Atlanta-based Daily Report.


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post #9 of 20 (permalink) Old 07-27-2015, 07:11 PM Thread Starter
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Find models in latest Fiat Chrysler recalls

Find models in latest Fiat Chrysler recall



July 27, 2015


A following is a list of models included in the 23 Fiat Chrysler recalls addressed in NHTSA's consent order.

The company must pay a record fine of $105 million for mishandling safety recalls on millions of vehicles.

Recalls can also be looked up by Vehicle Identification Number at Safecar.gov.

1993-1998; 2002-2004; 2005-2007; 2008; 2011-2014; 2015 model years Jeep Grand Cherokee

2011-2014 model years Dodge Durango

2004-2008, 2009-2012 model years Dodge Ram 1500

2005-2007; 2003-2014 model years Dodge Ram 2500

2006-2007; 2003-2014 Dodge Ram 3500, 2010-2014 Ram 4500, and 5500 trucks

2008-2012 model years Dodge Ram 5500; 2014-2015 model years Ram 5500

2007; 2009 model year Chrysler Aspen

2004-2007; 2009; 2012-2013 model year Dodge Durango

2005-2007; 2009-2011 model years Dodge Dakota

2002-2007 model years Jeep Liberty

2008-2012 model years Dodge Ram 4500; 2014-2015 model years Ram 4500

2008-2010 model years Chrysler Town and Country

2008-2010 model years Dodge Grand Caravan

2009-2010 model years Dodge Journey

2006-2007; 2008 model years Jeep Commander

2005-2007; 2008 model year Dodge Magnum

2015 model year Chrysler 200

2005-2007; 2008; 2011-2014 model years Chrysler 300

2005-2007 model years Chrysler 300C

2011-2014; 2015 model years Dodge Challenger

2005-2007; 2008; 2011-2014; 2015 model years Dodge Charger

2006; 2007 model year Mitsubishi Raider

2005-2007 model years Chrysler SRT8

2003-2004; 2013-2014 model years Dodge Viper

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post #10 of 20 (permalink) Old 07-27-2015, 07:20 PM Thread Starter
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Original purchase price plus 10 percent

Fiat Chrysler settlement with government could prove costly
Jul 27, 2015


Quote:
The older Jeeps have fuel tanks located behind the rear axle, with little to shield them in a rear crash. They can rupture and spill gasoline, causing a 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.

FCA must offer $100 to Jeep owners as an incentive to get a repair or a trade-in incentive of $1,000 toward the purchase of another Fiat Chrysler vehicle. The repair consists of adding a trailer hitch to the Jeeps. FCA has already repaired around 441,000 of the 1.5 million Jeeps recalled.
Quote:
But it ordered the buyback for up to 579,000 vehicles from the 2008 through 2012 model years. Of those, around 193,000 have not gotten the recall repairs and are eligible for either a repair or a buyback, according to recall reports submitted to the government by Fiat Chrysler.

In each case, Fiat Chrysler would be required to pay the original purchase price plus 10 percent, minus a certain amount for depreciation.

MORE HERE

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