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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 recalls 2 million Ram trucks over airbag issues

Airbag issues have prompted Fiat Chrysler Automobiles to issue another pair of recalls. The two separate issues both affect Ram pickups, one campaign stemming from oversensitive sensors, the other from a wiring harness. Between them, the problems affect an estimated combined total of some 2 million units. The first recall affects 2013-15 Ram 1500, 2500, and 3500 trucks, specifically four-door models, manufactured between June 20, 2012, and January 26, 2015. The calibration of the side impact sensor in those affected units may to be too sensitive. As a result, if the door is slammed too hard, the side-curtain airbag and seatbelt pre-tensioner may inadvertently activate. FCA reports that this issue affects an estimated 667,406 units in the United States, plus 153,011 in Canada, a further 8,272 in Mexico, and another 14,847 in markets outside of North America, amounting (in Chrysler's estimation) to less than 0.005 percent of those vehicles produced. The automaker says it is aware of two minor injuries (but no accidents) that may have resulted from the glitch, and is taking action to have the Occupant Restraint Control module recalibrated in the affected units. The second issue also affects Ram pickups, including 1500, 2500, 3500, 4500, and 5500-series models from the 2012 to 2014 model years, built between January 18, 2011, and October 7, 2014, and fitted with the optional Electronic Vehicle Information Center. The problem here stems from a wiring harness in the steering wheel that may rub against a retainer spring in the air bag control module, which in turn could cause an electrical short and deploy the driver's side air bag unexpectedly. In the United States alone, the issue is estimated to affect 1,060,531 units, which will need to be inspected and, where necessary, have their steering wheel wiring harnesses secured, with protective caps added to the ends of the airbag retainer spring. These do not represent the first issues we've seen from Fiat Chrysler in recent days. The automaker recently issued a recall for approximately 1.4 million vehicles to have their Uconnect software updated to prevent hacking. A few days ago it also announced a recall for 350,000 Dodge Journey (and Fiat Freemont) crossovers to secure loose engine covers. And the National Highway Traffic Safety Administration is expected to issue Fiat Chrysler Automobiles a $105-million fine for mishandling other recent recalls and safety issues.

Fiat Chrysler and Peugeot boards meet to finalize merger

MILAN/PARIS — The boards of Fiat Chrysler Automobiles and Peugeot will meet separately on Tuesday to discuss finalizing an initial agreement for a $50 billion merger to create the world's number four carmaker, sources said. A source close to FCA said the two companies could announce the signing of a binding memorandum early on Wednesday, followed by a conference call to explain further details later in the day. The two mid-sized carmakers announced plans six weeks ago for a tie-up to help them deal with big challenges in the industry, including a global demand downturn and the need to develop costly cleaner cars to meet looming anti-pollution rules. Ahead of the meetings, entities representing the Peugeot family, Etablissements Peugeot Freres (EPF) and FFP, unanimously approved a proposed memorandum of understanding for the planned merger, a source familiar with the situation said. FCA and PSA have said they would seek to finalize a deal by year-end to create a group with 8.7 million in annual vehicle sales. That would put it fourth globally behind Volkswagen, Toyota and the Renault-Nissan alliance. PSA's Carlos Tavares will be chief executive and FCA's John Elkann — the scion of Italy's Agnelli family, which controls FCA through their holding company Exor — chairman of the combined company. The group will include the Fiat, Jeep, Dodge, Ram, Chrysler, Alfa Romeo, Maserati, Peugeot, DS, Opel and Vauxhall brands, allowing it to serve mass and premium passenger car markets as well as those for trucks and light commercial vehicles. Related Video:       Chrysler Dodge Fiat Jeep RAM Citroen Peugeot