Chrysler Owners in Odometer Case to Be Given at Least $500
Letters are being mailed to notify an estimated 39,500 people who own Chrysler Motors Corp. cars that were test-driven with disconnected odometers that they will receive at least $500 each under a nationwide settlement, Missouri Atty. Gen. William Webster announced Tuesday.
Webster served as the lead negotiator in the $16-million-plus settlement with the auto maker announced in December. Attorneys general from nine other states assisted in the settlement proceeding filed Aug. 19 in U.S. District Court in St. Louis, he said.
The action was taken on behalf of consumers in 46 states, Guam and Puerto Rico. The states that did not participate in the settlement are Georgia, Kentucky, Nevada and South Carolina, Webster said.
Mileage on affected cars probably ranged from 40 miles to 200 or 300 miles. “When you put it in that context and consumers are getting $1 to $10 for every mile driven, plus a brand new warranty, we think it’s a good settlement,” Webster said.
Webster said his office, as well as officials in certain other states, were mailing letters to consumers who own cars test-driven in the company’s “Overnight Evaluation Program.”
In the program, new cars were driven by company executives as part of the testing process before the vehicles were shipped to dealers. Odometers on those cars were disconnected while the executives drove them, leading buyers to believe they had bought new cars. The program had been going on for many years, Webster said.
Advertisements Scheduled
The letters tell consumers what steps they must take to determine if they are eligible for a minimum of $500 in restitution from the company and outlines procedures they must follow.
Chrysler will also run advertisements about the settlement in the country’s 20 largest newspapers Friday, Webster said.
The settlement affects consumers who purchased a car made by Chrysler before Oct. 9, 1986 and owned that car on July 31, 1987.
Only consumers who purchased cars test-driven with a disconnected odometer in the company’s Overnight Evaluation Program will be affected, Webster said.
