Fiat Chrysler Hit with Class Action Over ‘Inspection Provision’ Hidden in Lifetime Limited Powertrain Warranties [DISMISSED]

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A proposed class action filed in California challenges defendant Fiat Chrysler US LLC over its alleged breach of its Lifetime Limited Powertrain Warranties for 2006, 2007, 2008 and 2009 Chrysler, Dodge and Jeep vehicles sold and delivered on or after July 26, 2007 (class vehicles). According to the lawsuit, owners of these vehicle models who bought Fiat Chrysler’s Lifetime Limited Powertrain Warranty were saddled with a surprise “inspection clause” mandating that class vehicles undergo a powertrain inspection within 60 days of each five-year anniversary of the car’s in-service date. The problem, the suit says, is that Fiat Chrysler has “routinely voided” customers’ powertrain warranties due to their failure to undergo this inspection within the allotted timeframe.

The suit attempts to link Fiat Chrysler’s allegedly unscrupulous conduct to the supposed “financial freefall” the company found itself in during the first half of 2007. According to the case, the defendant, after laying off 13,000 workers and announcing plant closings, faced “significant backlash” from dealers laden with overstocked inventories. To ease dealers’ frustrations, Fiat Chrysler, knowing that powertrain warranties were a key motivating factor behind almost every vehicle purchase, announced soon thereafter that it would offer Lifetime Limited Powertrain Warranties on 88 percent of its fleet models, the case says. 

The defendant reportedly touted its Lifetime Limited Powertrain Warranties in television and print advertisements as “the best warranty coverage in the business” and assured customers they’d be covered for the lifetime of their vehicles. Unfortunately, according to the lawsuit, Fiat Chrysler’s “peace-of-mind-reassurance” rang hollow once proposed class members uncovered the supposedly hidden inspection provision in their warranty agreements. From the lawsuit:

“FCA failed to provide Class members with the specific terms and conditions of the Lifetime Warranty prior to purchasing Class Vehicles. Moreover, the terms and conditions of the Lifetime Powertrain Warranty were not available on FCA’s website and FCA’s customer service department was “not empowered” to provide inquiring consumers with the terms and conditions of the Lifetime Powertrain Warranty. When consumers were finally provided with the terms and conditions after they had already purchased their Class Vehicle, the inspection clause – arguably the most consequential provision – was in fine print and indistinguishable from the surrounding terms.”