Thursday, Apr. 30, 2009

Odometer Scandal

An otherwise prosperous Chrysler decade was tarnished in 1987 when a federal grand jury indicted the automaker for odometer fraud. The company allegedly disconnected odometer cables on more than 60,000 cars and drove them up to 400 miles before reconnecting the cords. If these cars were involved in accidents, they were repaired and sold as new.

While Chrysler denied any illegality, company policy allowed assembly-plant executives to joyride in brand-new cars with odometers disconnected for almost two decades. An initial warranty extension was unable to satisfy the court, and Chrysler was eventually forced to mail $500 checks to 32,000 affected customers.

See the history of the electric car.