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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.

Prosecutors indict three FCA employees in alleged emissions-cheating case

Federal prosecutors indicted three Fiat Chrysler Automobiles (FCA, now Stellantis) employees as part of an investigation into alleged emissions cheating. Charges unsealed on April 20, 2021, accuse the defendants of helping rig the emissions control system fitted to the 3.0-liter turbodiesel V6 used in some models during the 2010s. Prosecutors claim Emanuele Palma, Sergio Pasini, and Gianluca Sabbioni played a determining role in developing a defeat device that allowed the V6 to obtain certification from the Environmental Protection Agency (EPA) while polluting too much in normal driving conditions. Jeep and Ram began making the engine available in the Grand Cherokee and the 1500, respectively, in 2014, but the charges state plans to game the EPA started in 2011. Palma, Pasini, and Sabbioni knowingly mislead federal regulators, the charges claim; they called it "cycle beating," according to The Detroit News. While the three men were part of FCA's research and development department, they started the project while working for an Italian supplier named VM Motori, which FCA purchased in 2013. Pasini and Sabbioni are each charged with one count of conspiracy to defraud the United States and to violate the Clean Air Act, one count of conspiracy to commit wire fraud, and six counts of violating the Clean Air Act. They could spend several years behind bars if they're found guilty. Both are currently in their home country of Italy. Palma's legal troubles are more serious. He was charged with several counts in September 2019, though four wire fraud charges were dropped in November 2020. He lives in Bloomfield Hills, a city located on the far outskirts of Detroit. Prosecutors claim motorists spent over $4 billion on over 100,000 trucks and SUVs fitted with the non-compliant engine between January 2013 and September 2017. FCA has already agreed to pay $800 million to resolve civil claims from the Justice Department, state officials and customers, though it significantly has not admitted guilt. It stressed that "it did not engage in any deliberate scheme to install defeat devices to cheat emissions tests."

Stellantis and the UAW reach tentative contract deal to end strike

The United Auto Workers has made a tentative deal with Stellantis that follows a template set by UAW and Ford. The deals will amount to total pay hikes of more than 33% when compounding and cost-of-living are factored in. The contracts will start with an initial increase of 11%. "We look forward to welcoming our 43,000 employees back to work and resuming operations," Stellantis said on Saturday. The Ford and Stellantis agreements will have to be ratified by all workers. U.S. President Joe Biden said in a statement the Stellantis "contract is a testament to the power of unions and collective bargaining to build strong middle-class jobs." The deal includes an agreement to reopen Stellantis' assembly plant in Belvidere, Illinois, which will now build midsize trucks, Fain said in a video on social media. The trucks could compete against Ford's Ranger and GM's Chevrolet Colorado and GMC Canyon models. The factory was previously shuttered and became a rallying point for the union's bargaining campaign. Stellantis also agreed to build a battery plant next to the Belvidere plant, UAW said. Illinois Governor Jay Pritzker called the agreement a "huge win for Illinois" and said the state will offer incentives to help offset the automaker's costs. Stellantis will also keep open two facilities that were under threat of closure -- an engine manufacturing complex in Trenton, Michigan, and a machining operation in Toledo, Ohio, Boyer said. In all, the automaker committed $19 billion in new investments in U.S. operations and the creation of 5,000 jobs where previously it planned to cut 5,000 jobs, Fain and Boyer said. The UAW has won the right to strike over product investment decisions, Fain said. The United Auto Workers on Saturday expanded its strike against General Motors to include its Spring Hill, Tennessee, engine plant, a move that could stall GM's large pickup production and increase its financial pain. The expansion of the seven-week strike leaves GM the only Detroit automaker without a contract deal.  Those deals won workers a record 25% jump in wages over the 4-1/2-year contract and allow the companies to restart their profitable truck assembly lines. At GM, people familiar with the bargaining said sticking points in the UAW negotiations include retirement benefits and issues related to temporary workers. GM has more retirees than either Ford or Stellantis and increases to pension benefits for workers hired before 2007 cost GM more than its rivals.