Chrysler 2.7L Engine Problem
The Problems
My mechanic (who I believe to be the best mechanic in the world), said he'd been hearing rumors of problems with the Chrysler 2.7L engine, and he would get some information for me. He did:

In August of 2005, I purchased a used 2002 Dodge Intrepid 2.7L for $10,000 from a local car dealership. The car was covered with a "warranty" up to 50k miles. The following May, with 49,899 miles the transmission went out. After a horrible ordeal with the warranty company (from a legal standpoint they should actually be called "Parts Insurance Companies" since you pay a deductible for service, and they cover limited problems), minus the cost of labor, I had my transmission replaced. Ok, well, they paid a junkyard for the cost of a used transmission ($200) while I paid almost $1000 labor.
With a new transmission, and now 50,000 miles on my 4-year old Dodge, all was again right with the world.
One day, the following October, I went out to start my car for work, and I heard a "clunk" noise. The engine failed to start. I turned the key again, and...nothing. As it turned out, the engine had seized. The vehicle now found a permanent place in my front yard, until I could afford the $5,000 that a new engine and labor would cost me.

Amazed, I found some additional information online regarding this defect:
So, as directed, I contacted ISG after filing a complaint against Chrysler at the Center for Auto Safety:
I told ISG that I had filed this complaint, and they requested the following information:
1. Copy of Original Bill of Sale
2. Copies of all oil changes (since my mechanic had all those records, we just put together a spreadsheet showing the dates and mileage intervals which we did the oil changes - ISG accepted these)
3. Diagnostics from repair facility (I included my estimate)
4. Estimate for repair or copy of repair bill
5. VIN#
Through ISG, Chrysler made me an offer well below what it would cost to repair my vehicle. I took this offer to my lawyer, who, when he was finished laughing, directed me in writing the following letter:
And included the estimate for repair:
The Solution
Chrysler did respond to this letter. While in the end, I was legally obligated to hold them harmless against future damage (ie. not sue them for this problem later, or engage in a class-action lawsuit), and I agreed to keep the details of this case confidential, I can say that it all ended to my satisfaction.
I obtained my new engine from Promar Precision Engines who I found on eBay. They resolved the problems found in the original Chrysler 2.7L engines, as described in their listing here. The engine is covered by a 3-year, unlimited mile warranty, and I can tell you that they do stand behind their product. About three months after the engine was installed, I had a small issue with a gasket which would have cost me about $500 to fix. Promar covered the cost of the repair, including labor. I couldn't be more happy about my decision to buy my engine from them.
While this was an extremely stressful experience and a long process, with a lot of people's help, I did finally get this resolved. I'm sharing this information as it was shared with me. I hope it can eventually help someone else.
UPDATE 4/26/2010:
For better or worse, Impartial Services Group is no longer mediating these cases for Chrysler. They advise to contact Chrysler directly at 800-992-1997.
I did so in order to obtain the updated process and spoke to a young lady named Donna who advised anyone having this problem contact them with the vehicle VIN# so that Chrysler could possibly offer "Goodwill Assistance" to those affected by this engine defect. She said that Chrysler doesn't usually offer assistance to vehicles that are not yet repaired, but that they would be considered on a case-by-case basis.






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