No, Fiat Chrysler Probably Won't Go Broke Buying Back Used Cars
After this morning’s announcement that Fiat Chrysler Automobiles would be subject to one of the largest civil penalties for an automaker, reports that the automaker could be on the hook for $2.5 billion in cars aren’t true , the automaker said today.
“While such amounts may exceed the $20 million, contrary to certain reports, FCA US does not expect that the net cost of providing these additional alternatives will be material to its financial position, liquidity or results of operations,” the automaker said in a statement.
In other words, expect to find some screaming deals on Ram trucks in the next few months.
The automaker announced on its website that not all customers would participate in the buyback plan and that 60 percent of the affected vehicles had been repaired already. That leaves roughly 200,000 cars that could be eligible for free repairs or to be purchased by FCA.
Those vehicles would be purchased at “a price equal to the original purchase price less a reasonable allowance for depreciation plus ten percent,” according to the automaker.
The manufacturer said under the guidelines of the penalty, it would be allowed to resell the recalled trucks to the public.
The vehicles that may be eligible for repurchase are:
• 2009-2012 Ram 1500s
• 2008-2012 Ram 1500 Mega Cab 4×4, Ram 2500 4×4, 3500 4×4, 4500 4×4, 4500 4×4
• 2009 Chrysler Aspen and Dodge Durango
• 2009-2011 Dodge Dakota
VolandoBajo on Jul 28, 2015
Lucas -- The Prince of Darkness. Spoken by one who knows. 1961 Jaguar Mk II 3.8 L sedan 1966 Norton Dominator SS twin carb cafe racer, made for the British market. The Jag would have its lights go black on an open highway in the middle of driving, while doing absolutely nothing you weren't doing for several minutes previously. Taught you to memorize the shape of the upcoming road. And the Norton would blow out its Zener diode rectifiers so frequently that most Norton riders I used to know would carry at least two in their spare parts kit. But Sterling didn't learn... I also heard that on the early versions, the wheels were shimmed with close to a dozen shims. A non-dealer mechanic tore one down to work on it (bearing replacement, I recall) and it would make grinding noises. Finally found out that each of the almost dozen shims not only had to be replaced in exactly the same order, but also in the same direction they were originally. And I think the exact shim setup was different for each vehicle. The mechanic was a pretty good mechanic, but had never heard of or seen anything like that before. I can only imagine what it must have cost to have the car worked on, with an almost captive audience for dealer service departments. Take my Sterling...please!
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