U.S. Forces Fiat Chrysler to Buy Back Trucks in Rare Move

http://www.msn.com/en-us/news/us/fiat-chrysler-vehicle-buyback-will-crackdown-keep-consumers-safe/ar-AAdDogP

Cristina Maza, Christian Science Monitor
7/29/2015

In a rare move, the National Highway Traffic and Safety Administration (NHTSA) required that Fiat Chrysler buy back nearly 200,000 faulty pickup trucks and SUVs from its customers.

The order, announced Sunday, stems from an earlier recall of about 580,000 pickups and SUVs. The automaker estimates that two-thirds of those vehicles have been repaired, leaving approximately 193,000 eligible for buyback. This is part of the largest penalty the NHTSA has ever imposed on a company. It is also a sign that the NHTSA, which came under fire recently for acting too slowly and failing to protect consumers sufficiently, is stepping up its game in an attempt to crack down on negligent car companies, experts say.

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Fiat Chrysler has admitted to violations in three separate areas: effective and timely recall remedies, notification to vehicle owners and dealers, and notifications to NHTSA, according to the agency.

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Some of the vehicles subject to repurchase, which include various 2003 to 2012 Rams, Aspen, Dakota, and Durango vehicles, have defective suspension parts that could cause the driver to lose control of the vehicle.

Owners of the defective vehicles will now be able to trade them in for cash, receiving the original purchase price, minus depreciation, plus 10 percent, according to the agreement. Additionally, holders of around 1 million Jeeps with exposed fuel tanks may be able trade in their vehicles for $1,000 above market value toward another Fiat Chrysler car.

The buyback program will not apply to car owners who already had their vehicles repaired as part of a previous fuel system recall on the Jeeps, or previous recalls on the other vehicles. Fiat is required to notify vehicle owners about their eligibility.

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