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Certain Chrysler owners eligible for buyback program

Certain car owners whose Chrysler vehicles contain dangerous defects will soon have a way to get rid of their lemons without losing money. As part of an agreement with federal regulators, Fiat Chrysler Automobiles has agreed to buy back more than 500,000 vehicles susceptible to veering out of control without warning at above market-value prices. The deal mainly covers certain models of RAM trucks, the Dodge Dakota pickup and Dodge Durango SUV. Further, owners of more than 1.5 million Jeep Liberty and Grand Cherokees at heightened risk for lethal fires are eligible to trade in their vehicles at above market value or, alternately, get a gift certificate if they prefer to have repairs made. Chrysler has "a heavy responsibility to make sure the products they make are safe for the traveling public," said Mark Rosekind, administrator of the National Highway Traffic Safety Administration. "... Here, we are sending an unambiguous signal to industry that if you skirt the laws or violate the law, or don't live up to the responsibility that consumers expect, we are going to penalize you." The buy-back and trade-in options for motorists come as part of an unprecedented penalty NHTSA slapped against Chrysler for violating federal motor-vehicle safety laws. Chrysler will pay a $105 million fine, the highest ever levied by the regulatory agency. In addition to the buy-backs, Chrysler also agreed to an independent monitor for three years. Investigators had outlined problems in the company's conduct in 23 recalls that affected more than 11 million defect vehicles. As part of a consent-order agreement, Chrysler acknowledged it did not notify vehicle owners of recalls in an effective manner and did not notify NHTSA of safety problems. Though those recalls affected millions of drivers, the buy-back and trade-in options are only for a small portion of the vehicles involved. Because Chrysler struggled to fix the problem and no repair was apparent, Rosekind said the buy-backs are reserved "for customers who didn't have a remedy." Buy-backs are for trucks and SUVs affected by three recalls that occurred in 2013 (recalls 13V-038, 13V-527 and 13V-529), that addressed a rear-axle pinion nut that could come loose and cause a loss of vehicle control. Those recalls covered 579,228 vehicles, including 2009-2012 Ram 1500, 2500, 3500, 4500 and 5500 trucks, 2009-2012 Dodge Dakotas, 2009 Chrysler Aspen and the 2009 Dodge Durango.

FCA CEO Mike Manley will take undefined new role after PSA merger

MILAN — Fiat Chrysler Chief Executive Mike Manley will remain with the new group set to result from a planned merger with French rival PSA-Peugeot, Chairman John Elkann said on Wednesday. In a letter to Fiat Chrysler (FCA) employees on the day the two companies announced a binding agreement for a $50 billion tie-up to create the world's fourth-largest carmaker, Elkann said he was "delighted" that the combined group would be led by current PSA CEO Carlos Tavares. "And Mike Manley, who has led FCA with huge energy, commitment and success over the past year, will be there alongside him," he said. He did not say what position Manley would hold. Elkann — who will chair the new group — said there was still much to be done to complete the merger. "Over the coming months we must work tirelessly and determinedly to fulfill all the approval requirements needed to finalize the commitment we have signed," he said. Related Video:     Hirings/Firings/Layoffs Chrysler Dodge Fiat Jeep RAM Citroen Peugeot FCA PSA merger Mike Manley carlos tavares

Mopar unveils Dodge Challenger Drag Pak [w/video]

Dodge is going drag racing, and it's doing it with an all-new version of the Challenger for NHRA's Sportsman class. FCA's Mopar parts and performance arm announced the new Challenger Drag Pak Friday, showing off a version with a 354-cubic-inch (that's a 5.8-liter, by the way), supercharged V8 and a 426-ci (7.0-liter), naturally aspirated V8 – both Hemis, of course – that can get the big coupes through the quarter-mile in "the eight-second range." While the two engines deliver similar performance, at their base, they're quite a bit different. The supercharged model uses a cast-iron block, while the 426 has aluminum for both the block and head. That said, both models get customized engine calibrations, and are mated to unique, race-spec automatic transmissions. But drag racing is about far more than just outright power. Mopar significantly updated the four-link rear suspension, adding a four-inch rear axle from Strange Engineering, along with an aluminum, nine-inch third member, while the rear-axle housing has been strengthened in general. Both the rear shocks and front struts can be adjusted for rebound and compression, too. Lightweight 15-inch wheels, meanwhile, are shod in super-sticky Hoosier drag radials, with nine inches of tread in back and 4.5 inches in front. The new Challenger Drag Pak should run the quarter-mile in "the eight-second range." In the cabin, there's an NHRA-spec roll cage, a Racepak gauge cluster, and a handsome pair of Sparco racing seats. Outside, supercharged models get blue decals, while naturally aspirated varieties get black stickers, although there's more to the new Challenger dragster's exterior than just its decals. Mopar tweaked the big-scoop hood, promising it's easier to get up to check on the engine, and the designers also added trailer tie-down straps in both the front and rear. While the dragster was the big news today, Mopar officials also announced the two enhanced Scat Pack kits for both the Dodge Charger and Challenger R/T. The 5.7-liter Hemi models gain an extra 56 horsepower and 30 pound-feet of torque in the Scat Pack 2 thanks to a new cam, valve springs, pushrods, and gaskets. The Scat Pack 3, meanwhile, adds 75 hp and 44 lb-ft, on top of the gains from the lower packages. That should be perfect for drivers who wish to snort in the face of their SRT 392-driving friends. The third stage adds a ported cylinder heads, as well as high-flow manifolds and catalysts.