Ram to Offer Buyback on Certain Trucks

FCA, NHTSA Reach Agreement on Recall Campaigns

Published July 27th, 2015

Fiat Chrysler Automobiles (FCA) and the National Highway Traffic Safety Administration (NHTSA) have consensually reached a resolution with regard to the NHTSA’s issues with FCA’s handling of 23 recall campaigns. This includes FCA’s admitted failure to promptly provide an effective solution in three specified campaigns and negligence in complying with various reporting requirements outlined under the National Traffic and Motor Vehicle Safety Act of 1966.

The result of the resolution includes a record breaking fine that may accrue up to $105 million in penalties, the largest in NHTSA history. Additionally, FCA must offer to repurchase vehicles not repaired in the three recall campaigns in question. Vehicles eligible for the company’s buyback program include the following Dodge Ram pickup models and model years:

NHTSA Recall 13V-038, loosening of the rear axle pinion

2009 – 2012 Dodge Ram 1500

NHTSA Recall 13V-527, failure of left tie rod assembly

2008 – 2012 Dodge Ram 4500, Dodge Ram 5500

NHTSA Recall 13V-529, failure of left tie rod assembly

2008 Dodge Ram 1500

2008 – 2012 Dodge Ram 2500, Dodge Ram 3500

 

Owners of 2006 – 2008 Ram 1500 and 2003 – 2008 Ram 2500/3500 models that were recalled for NHTSA Recall 13V-528, failure of left tie rod assembly, are not eligible for the buyback program under the terms of this resolution, but can still have their vehicle repaired by a FCA dealer at no cost. Although vehicles from other Chrysler brands are affected under the resolution, FCA claims that Dodge Ram pickups account for most of the approximately half a million affected models. FCA also claims that 60% of these qualifying models have already been repaired, leading them to believe that less than 200,000 vehicles are eligible for the buyback program.

FCA is only required to offer to repurchase vehicles from owners whom have NOT had their vehicle repaired per the original recall. Buy backs will be offered at the original purchase price less “reasonable allowance for depreciation”, plus a 10% repurchase premium. FCA is required to notify owners of vehicles that are eligible for the buy back and other related incentive programs.

Reports of the NHTSA resolution and buyback program follow news that FCA is recalling approximately 1.4 million vehicles for identified vulnerabilities in the company’s Uconnect system which, if exploited, may allow the vehicle to be hacked remotely.

 

UPDATE October 10th, 2015 - FCA Action Required by NHTSA

The National High Traffic Safety Administration has required FCA to orchestrate three separate programs in response to the company’s mishandling of more than 20 recall campaigns.

(1) FCA must offer a $100 dollar incentive for owners of the following affected vehicles to bring their vehicle in for repair:

2008 MY Ram 1500 Mega Cab 4x4

2009 to 2012 MY Ram 1500 with build dates 2/27/2008 to 6/30/2009 or 12/1/2009 to 10/20/2011 2008 to

2012 MY Ram 4500/5500 built between 2/20/2007 and December of 2012

2008 to 2012 MY Ram 2500/3500 4x4

2008 to 2012 MY Ram 3500 chassis cab

1993 to 2004 MY Jeep Grand Cherokee

2002 to 2007 MY Jeep Liberty

2009 to 2011 MY Dodge Dakota pickups with build dates 2/27/2007 to 6/30/2009 or 12/1/2009 to 9/30/2011

2009 MY Dodge Durango built between 1/3/2008 and 12/18/2008

2009 MY Chrysler Aspen built between 1/3/2008 and 12/18/2008

Note – some exceptions may apply, including for owners of affected model year vehicles whom have already received repairs for a Jeep fuel system recall and a suspension/steering recall on other brand models.

(2) FCA must offer a trade-in bonus for most affected vehicles, excluding affected Jeep Liberty SUVs.

(3) FCA must offer to re-purchase the following vehicles at the original purchase price, minus depreciation, plus 10%:

2008 MY Ram 1500 Mega Cab 4x4

2009 to 2012 MY Ram 1500 with build dates 2/27/2008 to 6/30/2009 or 12/1/2009 to 10/20/2011

2008 to 2012 MY Ram 4500/5500 built between 2/20/2007 and December of 2012

2008 to 2012 MY Ram 2500/3500 4x4

2008 to 2012 MY Ram 3500 chassis cab

2009 to 2011 MY Dodge Dakota pickups with build dates 2/27/2007 to 6/30/2009 or 12/1/2009 to 9/30/2011

2009 MY Dodge Durango built between 1/3/2008 and 12/18/2008

2009 MY Chrysler Aspen built between 1/3/2008 and 12/18/2008

 

At time of publishing, FCA had stated that the trade-in program will end January 4th, 2016 while the $100 repair incentive and buyback program have no expiration date. Customers who believe they own an affected vehicle are urged to to contact their local dealership for details.

 

Source: Fiat Chrysler Automobiles, National Highway Traffic Safety Administration