Chrysler Class Action Settlement & NHTSA Criticized by CAS

Chrysler Class Action Settlement & NHTSA Criticized by CAS

August, 2015

Dear Care for Crash Victims Community Members:

The Center for Auto Safety has issued the following release:

 TIPM Class Action Settlement Approved With Rental Car & Full Repair Reimbursment

       CAS Criticizes NHTSA for Violating Safety Act & Not Knowing Chrysler Misled Agency 

On August 17, 2015, a California District Court approved a landmark settlement in Velasco v. Chrysler Group LLC that obtained full reimbursement for the $1,100 to $1,200 repair cost of a TIPM-7 module and for the cost of rental – far beyond the $100 to $200 replacement cost of a fuel relay in the safety recall.  The Settlement Agreement signed by Chrysler shows the settlement agreement was reached in January 2015 and was contingent on Chrysler doing a safety recall of 2012-13 Grand Cherokees and Durangos.  The class action forced the recall.  NHTSA never opened an investigation into stalling on 2011-13 Chrysler SUVs for stalling caused by a defective TIPM-7 module despite the part going on national backorder in 2013.

The Safety Act requires NHTSA to grant or deny a defect petition in 120 days. NHTSA took 337 days to deny CAS’ Defect Petition, failed to obtain a single document from Velasco including ones that showed Chrysler began an investigation more than a year earlier than it told NHTSA, and used the 337 days to construct a strawman denial of the CAS Petition.

Statement of Clarence Ditlow

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Related Documents:

CAS Letter to NHTSA – 8/18/15

Click here to view the Petition for Defect Investigation – 8/21/14

NHTSA Denial of CAS Petition for Defect Investigation – 7/24/15

Velasco v. Chrysler Proposed Settlement Agreement – 6/10/15

Velasco v. Chrysler Settlement Approval – 8/17/15

CAS TIPM Information Page 


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