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Jeep braces for more legal action

Embattled car giant Jeep is expecting to be sued by more companies.

Jeep quality and customer satisfaction ratings hit a new low as the car giant gets ready for further court action -- but this time it will be on the receiving end.

Embattled car giant Jeep is expecting to be sued by more companies named in legal action it is taking against two former bosses in the $30 million motor industry scandal.

In yet another twist to the case that is before the Federal Court, Fiat Chrysler Australia -- the distributor of Alfa Romeo, Chrysler, Fiat, Dodge and Jeep vehicles -- this week sent an email to staff at its Melbourne head office warning it would likely be the subject of further legal action.

The email, obtained by News Corp Australia, says in part: "Our legal advisors expect more of these actions could occur. As the story is high profile you could expect to read about any developments in the media."

As News Corp Australia reported exclusively last week, soccer star Harry Kewell and three Melbourne-based Jeep dealers are taking separate action against Fiat Chrysler Australia.

Kewell is reportedly suing Jeep for breach of contract after allegedly not being paid since November last year, while the Motorworld group alleges in court documents Fiat Chrysler Australia blocked an agreement for the sale of its three dealerships.

News Corp Australia understands the rural Victorian resort, Villa Gusto, which was allegedly awarded a $5 million deal over three years by former Jeep boss Clyde Campbell to host events and VIP guests for 240 days a year, may be next to take legal action against the car company for breach of contract.

News Corp Australia has been told the Villa Gusto contract was terminated in April this year after payments from Jeep allegedly stopped late last year.

It is understood lawyers for Villa Gusto have contacted the lawyers representing Jeep to try to resolve the impasse.

The chance of further legal action comes as a top secret car industry survey has ranked the troubled automaker at the bottom of Australia's Top 15 automotive brands for "quality, reliability and consumer acceptance".

Most Jeep dealers were "very dissatisfied" with the car company's product reliability "in the first 90 days" and "long term"

A survey of hundreds of car dealers across all leading brands nationally has found most Jeep dealers were "very dissatisfied" with the car company's product reliability "in the first 90 days" and "long term".

The Jeep group of brands, marked as "CJD" for "Chrysler Jeep Dodge" on the graphs, was also marked down by dealers for "warranty support", the documents show.

When Jeep dealers were asked if they were "satisfied with the accuracy of manufacturer's collated financial results" the Jeep group of companies ranked last among the Top 15 brands, between "dissatisfied" and "very dissatisfied".

The annual survey was commissioned by the Australian Automotive Dealer Association and conducted by accounting firm BDO Australia.

Joshua Dowling
National Motoring Editor
Joshua Dowling was formerly the National Motoring Editor of News Corp Australia. An automotive expert, Dowling has decades of experience as a motoring journalist, where he specialises in industry news.
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