FCA to Repurchase Ram Pickups as Part of Record-Setting Penalty

Dodge-Tow-Vehilce II

Fiat Chrysler Automobiles will pay $105 million in fines, the largest civil penalty imposed by the National Highway Traffic Safety Administration, over its lapses in the way the automaker recalls its vehicles. As part of the agreement, FCA will repurchase thousands of Ram pickup trucks because of defects with the steering systems in select 2008-2012 vehicles.

The Ram pickups at the heart of this buyback settlement are 2008-2012 Ram 4x4 1500, 2500, 3500, 4500 and 5500 vehicles. FCA says more than 60 percent of the vehicles within that category have already been fixed, and under the agreement, it will be required to offer current owners of those qualified pickups a fair price (spelled out as the total after depreciation is subtracted from the purchase price). Other vehicles affected in this agreement include several Jeep and Dodge SUVs.

According to the Associated Press, NHTSA's order is the result of an increasingly aggressive stance by regulators to ensure auto companies take all measures necessary to repair vehicle defects. The order comes on the heels of two recent recall notices for late-model Ram light- and heavy-duty pickups: one for the possibility of the computer systems being hacked and the other for problems with inadvertent deployment of the side curtain airbag and seat belt pretensioner.

Buyback programs like this are not unusual in the auto industry, but what makes this particular agreement standout is its size and scale. Transportation Secretary Anthony Foxx is clearly trying to hold automakers more accountable for production and design issues that could potentially be unsafe, while at the same time sending a message to other automakers that if they don't take swift and comprehensive actions, fines and penalties will be significant.

The previous NHTSA record for a fine against an automaker was $70 million against Honda for delays in reporting pertinent information in a timely fashion.

FCA's statement on the NHTSA order:

"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.

"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."

The size and scope of this program is staggering, with some preliminary calculations headed into the billions of dollars if all the pickups (some are estimating as many as 300,000) are bought back. More to come.

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Comments

Poor Ram
http://captiongenerator.com/52307/Hitler-gets-a-new-Hemi

@Somar & Johnny Doe Boy

Ford Posts 44% Jump in Profit
Auto maker’s North America segment posts largest quarterly net ever
http://www.wsj.com/articles/ford-posts-46-jump-in-profit-1438081540

That's what happen when you don't make or sell Junk.

Rust In Peace
2008-2012
RAM

@David
Source?

@Chuck Taylor
Ford Posts 44% Jump in Profit
That's awesome news for investors, very bad for customers. Which of them are you ?

@somar
Its great for customers... That goes back into developing superior products like they currently are doing. Next up is the Super duty. Down fall is not everybody can afford a superior product so have to settle for the 14+ discounted recalled garbage that ram produces. That is the only reason Ram is selling is that is all the poor people can afford right now. Ram release there dismal 2nd quarter earnings on the 30th. Which there isn't going to be room to update there products to the level of GM and Ford. You may get a new grill or some shiny object to catch your attention.... But in the end its still old recalled piece of crap. This quarter will be OK for FCA compared to the last few of FCA... Next quarter they will be back to losing money as this recall reluctancy they are currently undertaking starts hitting there pocket book.

@Scott
I wouldn't call 8 speed 3L V6 turbodiesel with air ride "old recalled piece of crap", but I know you are just frustrated, that ford doesn't have any of it and you are trolololling.

@Scott
I wouldn't call 8 speed 3L V6 turbodiesel with air ride "old recalled piece of crap", but I know you are just frustrated, that ford doesn't have any of it and you are trolololling.

3.0 and the 8 speed is just that shiny object that draw in the ram fans. Its a piece of crap that have a horrible uptake rate for ram and is becoming very unreliable.

@Scott
I see I hit your nerves with that more than 20 billion FCA cash.

Old Chrysler motto. Mopar or Nocar ( I guess with Ram it no car)LOL

you morons who keep rehashing Fiat's Ownership on this site need to give it up. Do you think you are clever? The company is FCA. It is not or has never been Fiat or a Fiat Ram. Quit being so Childish and so what if it was? my 2015 Ram is the Nicest truck I have owned and every bit as nice as anything Ford or GM are putting out so is that meant to cut Ram down? Don't get it and it's only the children on this site doing it.....

Same goes for "Government Motors" Let it go.....

@ Hemi V8 Quality... how can you jump up & down about quality on this latest news when Fiat/Ram/Chrysler, because of them people have died!
"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."


Posted by: supercrew02 | Jul 27, 2015 5:54:22 PM

Your comment is rich. Here is a quick walk down memory lane. Ford wrote the book on vehicle fires.

" Crown Victorias prone to explode, tied to deaths
1:04 p.m. Sunday, June 5, 2011"

Ambroise, who died last year, is the latest of at least 30 law enforcement officers since 1983 who fell victim to fiery Crown Victoria crashes. Five were in Florida. Another 20 escaped patrol cars that crashed and caught fire.

Ford knew there could be issues with the position of the car's fuel tank as early as the 1960s, documents obtained by The Palm Beach Post show. "Ford has known about this,"

http://www.palmbeachpost.com/news/news/popular-police-cars-crown-victorias-prone-to-explo/nLszC/


Ford recalls 1.1 million trucks for fuel tank fire risks.

http://www.torquenews.com/106/ford-recalls-11-million-trucks-fuel-tank-fire-risks

Stay thirsty.

I hope this trend continues for all auto manufacturers. It's time human lives are more important than the bottom line.

P.S. This comment and the one above is my only comments on this page.

They also seem to have forgotten exploding pintos, ford truck starter fires, explorers on their roofs...i could go on

They also seem to have forgotten exploding pintos, ford truck starter fires, explorers on their roofs...i could go on

Gomer - you make me laugh. pity is the next step.

I have a 2009 dodge ram sport, $45k sticker, only 26k miles on it and garage kept, close to mint condition. I may actually make out OK on this deal. The parts were never in for the recalls so they have not been done, and verified my truck is on the buyback list. Will be perfectly happy trading it in for a 2015 4 door 4wd sport with all of the new goodies for just a couple thousand out of pocket. If you go by IRS depreciation around .50 per mile it is 13k off the sticker as a refund plus $4,500 10% bonus - any incentives the dealer will work in as they get a sale out of this mess. Fingers crossed.



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