FCA Reduces List of Vehicles Eligible for Buyback
More Vehicles Have Been Repaired than Previously Estimated
Fiat Chrysler Automobiles (FCA) is reducing the number of vehicles eligible for buyback as part of its recent governmentally mandated penalty, according to The Detroit News.
As a part of the record-breaking fine structure the company must pay to the National Highway Traffic Safety Administration (NHTSA), FCA apportioned $20 million to incentivize owners of certain recalled vehicles to either repair or trade in their trucks and SUVs. In the worst case, the company must also offer to buy back vehicles under certain recalls that have not been repaired yet.
The company now claims that more vehicles have been repaired than previously estimated, about 70 percent of the estimated 578,000 Dodge and Chrysler SUVs and pickups affected, so it will now only offer buyback privileges to 175,000 customers. Those customers, who drive 2009-2011 Ram 1500 and Dakota pickups, 2009 Chrysler Aspen and Dodge Durango SUVs, and 2008-2012 Ram Heavy Duty and Chassis Cab trucks, will be notified of the new recall arrangement, which will give them the opportunity to sell back their vehicles.
If they choose that option, they will be offered 10 percent more than the fair market value for their vehicles, which FCA may then repair and resell. The company claims that the $20 million earmarked for the campaign will be more than enough to cover its costs in buying and/or repairing recalled vehicles.
Also appearing in this massive NHTSA settlement is a requirement to provide financial incentive to owners of certain Jeep SUVs to have their vehicles repaired or traded in.
Source: The Detroit News