FCA Consent Agreement in U.S. Sparks $2 Billion Lawsuit in Canada

A Canadian law firm is seeking class-action status for a $4 billion lawsuit on behalf of Canadian car owners whose vehicles aren't covered by the U.S. consent order signed last Friday by Fiat Chrysler Automobiles NV.

FCA's agreement with the National Highway Traffic Safety Administration includes a provision ordering the carmaker to offer to buy back trucks and SUVs with defective tie rods and/or loose rear axle pinion nuts not yet repaired under recalls launched in 2012 and 2013. The consent order also details other offers FCA must make to owners of certain other recalled vehicles.

The lawsuit filed by Merchant Law Group LLP wants Canadian courts to rule that Canadian consumers driving virtually identical vehicles should be entitled to the same offers of compensation. The lawsuit estimates there are 200,000 vehicles in Canada that may qualify.

FCA tells Reuters it is working closely with Transport Canada to determine which elements of the U.S. agreement might apply to Canadian customers. The company claims this week's unrelated recall of 1.4 million vehicles in the U.S. to install anti-hacking software is not relevant in Canada because the vehicles it sold there have cellular links that work differently.