Let’s just say that there are recalls and then there are RECALLS. “Ram Tough” is apparently no guarantee against major product flaws and hefty fines. Fiat Chrysler has reached an agreement with the National Highway Traffic Safety Administration (NHTSA) that could have the automaker buying back hundreds of thousands of its best-selling Dodge Ram pickup trucks. The steering assembly has defective parts that could cause drivers to lose control of the vehicle. Dodge has been the subject of several issues requiring recalls (about two dozen, dating back to 2011 and involving some 11 million defective vehicles) but according to the NHTSA, these have proven largely ineffective in getting numerous unsafe cars repaired or off the road. After a July 2 public hearing regarding this latest matter, after which auto safety regulators also examined how the company had handled its previous recalls, Chrysler acknowledged three areas of violation of the Motor Vehicle Safety Act: effective and timely recall remedies; notification to vehicle owners and dealers; and notifications to the National Highway Traffic Safety Administration.
Chrysler has agreed to repurchase many of the defective vehicles from owners and repair others, as well as paying a $105 million civil penalty – the largest ever imposed by the NHTSA. It has also agreed to an independent recall monitor and strict federal oversight. The U.S. Department of Transportation announced news of the enforcement action and fine July 26. For more information and details on the hearing, go to www.safercar.gov/rs/chrysler/index.html. The enforcement action and record-setting civil penalty signal is a more aggressive approach by auto safety regulators, but according to an Associated Press report, it is not immediately clear how many vehicles would be affected. Chrysler sold over 500,000 of these vehicles, but according to reports the company filed with the NHTSA, only about 193,000 of said vehicles have not yet been repaired. Under the agreement, Fiat Chrysler has to buy back the trucks for the purchase price, minus depreciation. As an example of how this could add up for Chrysler, the Blue Book Value of a 2010 Dodge Ram 1500 - one of the smaller, less-expensive trucks involved in the recalls - could fetch $20,000 in a dealer trade-in, assuming the truck has 60,000 miles on it and is in "good" condition.
At that rate, if Chrysler had to buy back even a quarter of the trucks at issue, it could spend $2.5 billion. Of course, owners of these vehicles also have the option of simply having their vehicles repaired rather than bought back. Models included in the buy-back offer include: * 2008 to 2012 model-year Ram pickup trucks that have either steering problems or axle problems, or both. * 2008 to 2012 Ram 4500 and 5500 super duty pickup trucks, for steering problems; * 2009 to 2011 Dodge Dakota trucks, for axle problems; * 2009 Dodge Durango and Chrysler Aspen SUVs, for an axle problem. According to Chrysler’s website for handling recalls (http://recalls.mopar.com/), the 24-hour toll-free number for help and information is 866-726-4636. However, under the agreement, Chrysler will be allowed to resell any vehicles it buys back, as long as it makes the necessary repairs, and according to spokesperson Eric Mayne, the automaker intends to do just that. Now that’s Ram Tough.