Chrysler Will Buy Back – Then Resell — Vehicles Under Consent Order

Agreement actually could drive increased FCA sales.

by on Jul.27, 2015

About 193,000 of the Dodge, Chrysler and Ram trucks may be eligible for buyback.

As part of the consent order Fiat Chrysler Automobiles has reached with the National Highway Traffic Safety Administration, the maker will pay a record $105 million in fines and penalties – while also taking hundreds of thousands of recalled vehicles off the road.

In some cases, however, that may only be temporary. TheDetroitBureau.com has learned that the trans-Atlantic automaker intends to repair some of those vehicles and then resell them to the public. That could affect as many as 193,000 pickup trucks and SUVs, according to documents FCA has filed with NHTSA.

The Rest of the Story!

“If we repurchase them we will resell them after performing the necessary service,” spokesman Eric Mayne told TheDetroitBureau.com, noting that was a step approved by federal regulators as part of the extensive consent order.

The complex agreement was hammered out in the wake of what NHTSA Administrator Mark Rosekind called an “unprecedented” hearing meant to examine how Fiat Chrysler handled 23 separate recalls. It was determined that the maker didn’t meet federal guidelines on a number of those.

And even when it did issue recall orders, as required, NHTSA raised concerns about the low rate of consumer follow-up. Only 21% of those owners impacted by a 2013 recall involving Jeeps that can catch fire in rear-end crashes have so far had their vehicles repaired.

(For an overview of the FCA consent order, Click Here.)

A 1998 Jeep Grand Cherokee.

In this case, the automaker will take several steps to either improve the repair rate or take off the road Jeep Grand Cherokees sold during the 1993 to 1998 model-years. SUVs that have not already been repaired will be eligible to receive a $1,000 incentive “over the fair market value of the vehicle,” according to the consent order.

That money will be available to use for the purchase of either a new Fiat Chrysler vehicle, or for parts or service. In other words, the agreement with NHTSA effectively requires those owners to buy something new if they expect to get the maximum payout.

Separately, FCA plans to buy back a wide range of 2008 to 2012 model-year Dodge and Ram full-size pickups, as well as the midsize Dodge Dakota truck and Chrysler Aspen and Dodge Durango SUVs from the 2015 model-years. These vehicles suffer from suspension problems that could cause a sudden loss of steering control.

(1.5 million Jeeps recalled because of hacking risk. For more, Click Here.)

It has been widely reported that more than 500,000 of these are covered by the consent order. In fact, more than 60% have already been repaired or taken off the road. According to quarterly reports filed with NHTSA, only about 193,000 of the vehicles have yet to be repaired or be repurchased by FCA.

Specific details of the program have not yet been released but are expected to be revealed to owners in the coming weeks. But they are expected to receive some sort of premium should they choose to sell the vehicles back to Fiat Chrysler, rather than having them repaired.

And a source at the automaker acknowledged it is “plausible” dealers will try to get those owners to buy a new FCA vehicle with the money they receive through the buyback.

While the Jeeps covered by the consent order are all at least 17 years old, the pickups and SUVs impacted by the buyback program are relatively new, many still covered by their original warranty. So, while the Jeeps will be scrapped, the trucks will get a second life.

“If we repurchase them we will resell them after performing the necessary service,” explained spokesman Mayne.

It remains to be seen how FCA will handle the process of putting those vehicles back onto the used car market. In some states, meanwhile, the maker may be required to directly disclose that they were repurchased and then repaired, but it is not clear that will be mandatory in all parts of the country.

“We will comply with all applicable regulations,” said Mayne.

(Hidden killers? NHTSA questions whether aging airbags could fail catastrophically. Click Here for the exclusive report.)

Tags: , , , , , , , , , , , , , ,

31 Responses to “Chrysler Will Buy Back – Then Resell — Vehicles Under Consent Order”

  1. That recall doesn’t touch the tip of the iceberg on my 2008 Dodge Ram 2500. The diesel particulate filter was garbage and resulted in severe damage costing 3000 Dollars to replace and had to fight the warranty company to pay for the Turbo which completely failed secondary to the filter becoming clogged. No more than 20,000 miles after it began to clog again and had to totally remove the emission system. I know I am not the only one who has suffered from this I am sure 1000s are out there.

  2. Cote Griggs says:

    Question: if an owner has already had the tow hitch put on their Jeep Liberty as part of the recall prior to the knowledge of this buy back option, will they have the option to do the buy back?

    • Paul A. Eisenstein says:

      No, anyone who has completed the recall repairs is NOT eligible for the buyback.
      Paul A. Eisenstein
      Publisher, TheDetroitBureau.com

  3. Patrick says:

    So the Jeep liberty is included though. They’ve sent me mail about getting a hitch installed but, I haven’t had our done yet.

  4. John B says:

    Paul,

    I’m an owner of a 2009 Dodge Ram with the recall in question associated with the buy-back. Getting the local Dodge dealership to honor the recall and complete the repair was quite an undertaking–I’ll spare you the details.

    What I am frustrated about is those who pressed to get the recall complete are now being punished for their thoroughness. Dodge will resell the Rams, flooding the market and increasing supply. The nature of the issue also makes the model/year “tainted goods” which is going to drive down consumer demand. This will, of course destroyed the resale value of the vehicle.

    I guess I am now stuck with this vehicle until it is hauled off to the junkyard. Furthermore, Chrysler recall K17 (in 2010) was a Ram recall to reprogram the HVAC controller and replace damaged actuators. Dodge tells me the recall is complete, but the HVAC keeps breaking actuators. Dodge wants to charge me $1,000 to have it fixed!

    Sincerely,
    A Frustrated Ram Owner

    • GT101 says:

      File a complaint with NHTSA. Right now you might have a better chance than ever to get FCA to fix the actuators if NHTSA gets involved.

      • Ella light says:

        Hi, I have an 07 dodge Dakota….its junk…..rusted out, horrible….drive train broke, unreal….how do I file a complaint with the NHTSA?

        • Paul A. Eisenstein says:

          Go to the agency’s SaferCars.gov website and look for the link, Ella. Good luck.

          Paul E.

  5. Thomas Maire says:

    Have 2010 dodge journey Had steering problems from the start Shimming in front end found out it also had bad brake rotors.had to have front end aligned at my expense tires were rotated every 10,000 miles Replaced at 50,000 was made in Mexico

  6. Christie says:

    I had a 2010 commander with all kinds of issues and even had a complaint open with chrysler corp. for a year and they did nothing to solve the issue with the idle and stalling of the vehicle. I finally traded it in and got a 2015 grand cherokee 3 weeks ago and now this. I feel like I am being dooped by them.

  7. Jorge says:

    This recall is a cluster no matter how you look at it.

    For those of you with issues, I hope that you get solutions. There is no acceptable reason for these kinds of defects and failure to correct any defect be it a safety defect or simple product defect.

  8. Eric kimmins says:

    I have a 09 quad cab 4×4 ram and I looked into this and I did have the axle nut recall performed but wasn’t aware of a “campaign about the tie rod ends” which is listed for my truck that’s never been repaired. Am I eligible for the buy back program? Thank you for your time

    • Paul A. Eisenstein says:

      Please your dealer or wait for the advisory FCA is about to send out.

  9. Eric kimmins says:

    I have a 09 quad cab 4×4 ram and I looked into this and I did have the axle nut recall performed but wasn’t aware of a “campaign about the tie rod ends” which is listed for my truck that’s never been repaired. Am I eligible for the buy back program? Thank you for your time. Would love to sell it back

  10. nikki says:

    To John B the recall for hvac can be completed agai. Since the first repair failed. Go to your local dodge dealer and ask for it to be completed again..since the previous repairs failed. Thks would be covered under the recall..no cost to you. Most recalls can be completed again..this being one of them.

  11. veh says:

    I think just about everything Chrysler (pre-FCA) made from about 2005-2011 had issues with stuff…our 2007 minivan has had a ton of problems that our 1997 Voyager did not have. Rust, trim, mechanical bits…

    Cerberus must have cut costs like the hedge fund vultures they are. At least they lost money on the deal, some small revenge.

  12. Karen D says:

    Our daughter had a ’99 Jeep GC LTD. She loved ‘Jeepers’, until he was rear-ended. Thank God she didn’t listen to us when we told her to keep more than fumes in the car, b/c after she was rear-ended, the back of the car pierced her gas tank. the body shop guy said had there been gas in that car, it would have blown up. Scary.

  13. Dennis H. says:

    I have a 2009 Dodge Ram 1500 sport edition which I love, it only has 26,000 miles and I never got the recall notices due to a bad address in the system. This is scarey and I know I am gonna get screwed. The truck does not have a scratch on it, a 2004 dodge Ram saved my life in a devastating head on collision so this was purchased for the main reason that it makes me feel safe. Well now I am scared that I own a truck that can suddenly lose control at highway speeds. I also hear that the tie rod replacement or whatever the one recall is, they don’t even know if it is a guaranteed fix! So I will never feel comfortable driving a pre 2013 Dodge Ram now. The issue I have, and this is why I know I am gonna get screwed, Besides the almost $3,000 spent on accessories like bed liner, Bed cover, full length stainless step bars, added power locking to the rear tailgate that works with the doors, custom stainless exhaust, and a bunch of other stuff, and a very expensive extended warantee that does not run out to 2019 or 100k miles I also am an officer on a emergency services team and have an LED lightbar, and 3 antenna permanently installed through the roof, strobes in all of the lights, and the radios installed in the dash I know they are going to say this reduces the resale value and it is going to make me extremely mad, besides the fact that to move everything professionally to a new truck is somewhere over $1,000. I would not mind getting a used 2013 or so with under 30k miles from a dodge dealership but I bet they take over 5k off for the custom lights, antenna, and radio install holes. Maybe I will have to threaten a class action or something, There is no reason that this should either leave me with an unsafe truck that I do not trust or the loss of thousands of dollars for a perfectly good truck with the exception of the fact that it could kill me on the highway because of Dodges bad parts. Just venting, sorry about the rambling but this purchase price – depreciation + 10% premium does not do people like me any good. I don’t want a 2015 Laramie, I just want a safe used one just like mine with the sport package, center console, leather trimmed seats and dashboard and premium sound system. Oh I also forgot to mention the $1,200 I just spent on new tires for it. If someone at Dodge happens to read this I am still waiting for someone to call me back to tell me what is going to happen!

  14. Dwain says:

    I have a 2012 Ram SLT Quad Cab Big Horn with no recalls posted as of yet. Will I still fall under the buyback?

  15. shawn says:

    I have a 2007 Jeep Commander and I was wondering if anyone knows if these are eligible for the buy back program?

  16. Micah says:

    I have a 2008 Dodge Ram 2500. I bought it new in 2008 and was planing on keeping it for the rest of my life. So I could use up the lifetime power train warranty. I called FCA about the buy back and they told me my truck is included in the program because they never ed me about the tie rod recall. I was wondering how much will they really buy it back for? Are they going to bend us over and give us nothing for our trucks? I have read the info about what they have to buy the trucks back but it’s very unclear about how they will determine how they calculate the depreciation. And are they suppose to pay me for the extras I did to my truck?

  17. Frank says:

    I have a 2010 Dodge Journey SXT and from day one I got it and it has been a piece of crap was in the dealership every other month for something different and the warranty finally went out and I still have problems with electrical system, oil leaks, head gasket problems from the over heating they said was fixed unde warranty the list goes on and on. I have seen and heard of other people that had journeys and all kinds of problems and this car should be at the top of the list. I will always tell people to never buy a dodge after this one.

  18. marie Wood says:

    I really think that the dodge Journey should be included in the buy back program. The journey is A cheap made suv that has many front in problems and brake problems.

    • bill says:

      really? front “”IN”" problems. this is why ladies shouldn’t talk about anything related to automobiles ever!!!!!!!

  19. Kaine Barnes says:

    I have a 1994 jeep grand Cherokee, with no recalls made to it. It’s a little rough for wear, but it runs well. Can I take it to a dealership and just get cash? I understand the $1000 credit isn’t included unless you put it towards another car, but I just need some cash? Will they still give the fair market value? I guess I’m asking, are they saying they “have” to buy it back?

    • Paul A. Eisenstein says:

      Hi, Kaine,

      My understanding is that your vehicle is NOT subject to a buyback but only to the trade-in bonus offer. You can check via the information we’ve provided.

      Paul A. Eisenstein
      Publisher, TheDetroitBureau.com

  20. Leslie Payne says:

    I have a Dodge Ram 1500 Big Horn 4×4 Crew Cab and it’s on the list to be bought back as I called FCA with my VIN # to confirm. When I ran my VIN # it shows up as a 2011 Ram 1500 Laramie. Is the Big Horn part of the Laramie brand?

    • Paul A. Eisenstein says:

      I have to admit I am not sure on that, Leslie. Your dealer should be able to advise. The important thing is you are eligible for the buyback if that’s what you are seeking.

      Paul E.

      • Leslie Payne says:

        I have a friend who took his Dodge Ram to a Fowler Dodge in OKC. He told me once he receives the letter from Chrysler, bring the vehicle in and they will take.56 cents per mile off for depreciation! I thought to myself, if that’s how all Dodge dealerships are going to do this, anybody who still owes on their Ram pickup will still owe on it if they decide to get rid of it.

  21. RAndy olson says:

    I have an 09 ram 6.7 diesel,probe include,powersterring,ac fan,bad front axels,defrost issues,dpf system plugging up every 1500 to 2000 miles,truck just dies going down road.have to stop and restart,works for a while more,cannot trust it and looked in to trading it in,no trade value close to what it is worth.how do I qualify for the buy back?

    • Paul A. Eisenstein says:

      Please see the story we posted listing the models that broadly qualify. You will need to wait for notification, or the factory or dealer, to see if your specific vehicle qualifies.

      Here’s a useful link: http://htxurl.info/2015/07/is-your-car-up-for-a-buyback/

      Paul A. Eisenstein
      Publisher, TheDetroitBureau.com

https://www.biceps-ua.com/

showroom-kiev.com.ua

www.yarema.ua