August 17, 2015
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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CAS Letter to NHTSA – 8/18/15
Velasco v. Chrysler Settlement Approval – 8/17/15