Fed Clamps Down On Fiat Chrysler - Can't Sell Used Cars With Oustanding Recalls - Why Allow Anyone To?

Fiat Chrysler dealers stand to lose incentive dollars from the automaker if they sell used cars with open, unrepaired recalls under a new policy ordered by U.S. regulators.

The policy is outlined in the 36-page consent agreement between Fiat Chrysler and the National Highway Traffic Safety Administration, imposed July 24 for violations of U.S. auto safety laws tied to 23 FCA recalls.

According to the agreement, FCA US must "develop and implement a process to deter dealer sales of unremedied vehicles subject to a recall." That will include training to reinforce FCA's existing policy against selling cars with open recalls. It also calls for "imposing a financial penalty ... and/or prohibiting any dealer from receiving any incentive from FCA US, if the dealer sells an unremedied recalled vehicle regardless of whether new or used."

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MDarringer - 8/4/2015 12:36:35 PM

-6 Boost

Notice how the feds are going balls out on FCA just as FCA is in contract negotiations with the bloodsuckers oops I mean the UAW. TheSteve has told me to be nicer and well bloodsuckers just spilled out. Sorry, TheSteve. :)

TomM - 8/5/2015 8:04:47 AM

+1 Boost

1 - That a car has an outstanding recall - ignores the fact that a process must still happen - the Automaker must come up with a "fix" and that must be distributed to a dealer network BEFORE a car can be fixed.
2 - Dealers have no advanced knowledge of a recall - and can "sell" a car on the lot - take a deposit - and have the car recalled before they complete the sale.
3 - Dealers can sell a car on a lot on the same day that a car is recalled - but before they receive notice - and in that case - the car is legally owned by the buyer.

Lastly - FCA does not own its dealers. How long can a dealer afford to keep a recalled vehicle on its lot waiting - and how will the dealers be compensated for doing so.

MDarringer - 8/5/2015 9:17:41 PM

+1 Boost

@TomM, you are 100% correct about the dealers getting caught in the lurch.

With a little government/private sector cooperation, the manufacturer could easily search DMV records to contact owners about recalls. It is the manufacturer's responsibility to fix the issues in recalls NOT the dealer. The dealer is merely a third party.

dumpsty - 8/5/2015 2:29:39 PM

+1 Boost

The used car market is still very huge & very shady too.

Go to a used car shop on a new car dealership site....yes, they find that perfect "pre-owned" heap for you, but they won't offer to make any necessary repairs (warranty or otherwise) until your signature is on a used car contract.

Years ago, I found a nice, clean Eagle Vision but it has issues with the parking brake connections. The used car sales manager would not entertain fixing the issue BEFORE the car was sold - only after I bought it did they make repairs. These dealers will clean-up the exterior & sale consumers whatever & hope they don't notice nothing before the little used car warranty expires. This a big reason why i trust CarMax b/c they offer extended warranties from day-1 & they cover everything.

MDarringer - 8/5/2015 9:29:34 PM

+1 Boost

You trust CarMax?? *derisive laughter"

Did you get a good deal on your Hurricane Sandy car? *derisive laughter*

You do realize they sell manufacturer buy backs that have been put out to auction, right?

You do realize CarMax doesn't offer you an extended warranty, they SELL you one.

You do realize that literally ANY person can purchase an extended warranty on ANY car, right?