Fiat Chrysler to Buy Back 500,000 Pickups in Recall Deal

[danemayer]

All the news reports today: "Fiat/Chrysler forced to buy back 500,000 trucks."

Should have said: "....forced to offer customers to either repair or buy back 500,000 trucks."

 

[JWalker]

All the news reports today: "Fiat/Chrysler forced to buy back 500,000 trucks."

Should have said: "....forced to offer customers to either repair or buy back 500,000 trucks."

Also read this.

"Fiat Chrysler said more than 60 percent of the trucks already have been fixed, and the company is allowed to repair and resell the trucks it buys back."

4x4 trucks fetch quite a nice penny around here....

 

[sgtbigb]

I agree Dan, I would perfer to keep my truck with an extended warranty, say to 10 year, 250,000 mie warranty

500,000 eligible vehicles
100,000 - guesstimated number of owners who are financially able to take advantage of the buy back. (1)
$10,000 - guresstimated cost to Chrysler per vehicle to resell to wholesalers to sell in other countries.

100,000 * $10,000 = $1,000,000,000. Treated as an expense, so Chrysler gets to reduce taxable income by this amount, reducing the total amount substantially.

Not going to bankrupt the company.

(1) If tens of thousands of RAM owners are suddenly out buying new or late model used trucks, the price of all brands of trucks will go up. With heavy demand, discounts might be hard to come by. Of course this won't be factored into the depreciated value of the old truck.

I doubt that 100,000 owners will take advantage of the offer once they find out how much they get for their truck, and how much a replacement will cost, and how hard it will be to even find a replacement.

But if you're thinking about buying a truck, now might be the time to do so, before prices go up and selection goes down.

 

[sparky2009]

I own a 2009 Ram 3500 dually 6.7 diesel, have mil light on. tried unpluging the egr but no change. Any suggestions available? Tom

 

[wdk450]

I own a 2009 Ram 3500 dually 6.7 diesel, have mil light on. tried unpluging the egr but no change. Any suggestions available? Tom

Try websearching "Dodge Ram Diesel Forums" .

 

[AAdams]

I was at a Ram dealer the other day making yet another appointment for service. He stated that yes RAM will be offering to buy back the vehicles... But read the fine print, at original cost, less depreciation. So basically they are buying them at retail, sell at retail after they are repaired, or a little less. As of last quarter FCA had $25.2 Euro or $27.7B US in liquid assets, I don't think the fine and recall is going to really hurt them too much. The above asset information was taken from p18 of the FCA quarterly report.

 

[Mburtsvt]

I was at a Ram dealer the other day making yet another appointment for service. He stated that yes RAM will be offering to buy back the vehicles... But read the fine print, at original cost, less depreciation. So basically they are buying them at retail, sell at retail after they are repaired, or a little less. As of last quarter FCA had $25.2 Euro or $27.7B US in liquid assets, I don't think the fine and recall is going to really hurt them too much. The above asset information was taken from p18 of the FCA quarterly report.

We need the bigger picture here.... They do not really have $27B they are close to underwater as a company.....too much debt. Could they sell off Ram to rase cash? We will just have to see how the whole Ferrari IPO plays out.... will it rase additional operational cash.... maybe.....

https://www.kapitall.com/framework/...pZXciOiJCYWxhbmNlIFNoZWV0IiwicGVyaW9kIjoiQSJ9

 

[MTPockets]

Corporate cultures set up these things for the inevitable problems we see in the auto industry. During My 38 year career I was involved with large corporate supplier contracts with GMC, Chrysler, and Ford.. They are all tough and ruthless, and could care less if their suppliers made much, if any, profit. Comparing the three, GMC was the absolute worse. Very dictatorial, my way or the highway. Regularly broke contract terms and would leave supplier for a better price in an instant; touting quality while ignoring supplier quality issues in order to get low price. Chrysler was better, but leaned that way. Ford was very tough in price negotiations, but more prone to accept supplier suggestions for improvements. GMC & Chrysler bailouts, recalls, and history of corporate problems pretty much support how I saw their supplier treatment. I retired 11 years ago, but sense from the news, they've not changed much.

 

[Bones]

Corporate cultures set up these things for the inevitable problems we see in the auto industry. During My 38 year career I was involved with large corporate supplier contracts with GMC, Chrysler, and Ford.. They are all tough and ruthless, and could care less if their suppliers made much, if any, profit. Comparing the three, GMC was the absolute worse. Very dictatorial, my way or the highway. Regularly broke contract terms and would leave supplier for a better price in an instant; touting quality while ignoring supplier quality issues in order to get low price. Chrysler was better, but leaned that way. Ford was very tough in price negotiations, but more prone to accept supplier suggestions for improvements. GMC & Chrysler bailouts, recalls, and history of corporate problems pretty much support how I saw their supplier treatment. I retired 11 years ago, but sense from the news, they've not changed much.

I don't think it is just with the auto industry. I think the whole industry is suffering from this due to share holders constantly wanting astronomical profits.

 

[MTPockets]

I don't think it is just with the auto industry. I think the whole industry is suffering from this due to share holders constantly wanting astronomical profits.

There is truth to that. My experience leaned heavier towards the auto industry, but did deal with paper, steel, food industries; and saw the more profitable structures were those companies who based more trust in their suppliers expertise. Just because you're good at putting together a truck, doesn't make you an expert on fuel pump design.

 

[Gaffer]

- -

I own a 2009 Ram 3500 dually 6.7 diesel, have mil light on. tried unpluging the egr but no change. Any suggestions available? Tom

Re: Fiat Chrysler to Buy Back 500,000 Pickups in Recall Deal

There are many reasons for the light to come on. You need to know the code to decide what to do next. As an example: The trouble code P2002 diesel particulate filter efficiency below threshold means that this value was reached on two consecutive run cycles. Happened to me on a 6% grade while towing. When I stopped about 40 miles later for a break, I looked up the code, jotted down notes and cleared the code. It has not come back. You just never know.
Read more at: http://www.obd-codes.com/p2002
Copyright OBD-Codes.com​

 

[codycarver]

I don't think it is just with the auto industry. I think the whole industry is suffering from this due to share holders constantly wanting astronomical profits.

Really??? If the profits were so high how come 2 of the big three went bankrupt.

BTW, those greedy share holders are you and me any anyone else that has mutual funds in their 401K's

 

[alwayslooking]

Or, anyone receiving a pension. The problems affecting domestic auto manufactures are many and go back decades. Too say that one group or on thing has brought them to where they are today is simplistic. Speaking of greedy, does anyone pay full manufactured suggested retail when they but their truck?