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Chrysler Agrees to Fix Emission Control Defects on 1.5M Cars
December 2, 2005
The federal Justice Department and Environmental Protection Agency announced they have reached a settlement with Chrysler Corporation to repair defective emission controls on 1.5 million Jeep and Dodge vehicles from model years 1996 to 2001. This agreement also settles the allegation that Chrysler violated the Clean Air Act by failing to disclose defective catalytic converters in over a million affected vehicles.
To implement the settlement, Chrysler will be required to spend $90 million. In addition to these costs, the motor company must pay an additional one million dollars in punitive fines for their negligent handling of this serious auto defect. One million dollars must also go to the state of California as part of a parallel settlement with the California Air Resources Board (CARB). The company will have to spend another three million dollars to carry out a compulsory environmental project to reduced diesel engine emissions. This last requirement makes this settlement, $94 million in total, the largest yet for emissions-related auto defects.
In carrying out the terms of the settlement, Chrysler will be required to:
1. Extend the warranty on 700,000 vehicles with defective catalytic converters. Affected vehicles include certain 1996-1999 model year Jeeps, Dodge Rams, and Dodge Dakota vehicles.
2. Send notification to another 300,000 Chrysler vehicle owners about the catalytic converter defect covered under the original warranty. This notification will remind them that their original warranty for catalytic converter defects is 8-year/80,000-miles.
3. Recall half a million vehicles to check and, if necessary, repair catalytic converters and fix an additional auto defect in the on-board diagnostic (OBD) system.
4. Implement enhanced reporting procedures for emission-related auto defects.
The lawsuit settled today is the product of EPA and CARB joint investigations of Chrysler's Cherokees, Grand Cherokees, Wranglers, Dakotas, Rams, and pickup trucks model years 1996 to 2001. The study found that a high number of these vehicles experience failure or excessive deterioration of the catalytic converter. This device is installed in the exhaust system to control emissions and reduce pollutants. A design flaw in the making of these catalytic converters has been determined to be the source of the defect.
If your vehicle is affected by this recall you should receive information from your vehicle dealer about how to proceed. If you are unsure what this Chrysler settlement means for you, you may wish to contact your vehicle dealer.
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