USA auto claims guy here, for the last 15 years. I've handled and pursued subrogation for than a few vehicle fires. Cars burn for a lot of different reasons, most of them not the fault of defective products. The number one reason? Parking over grass. Don't do it. People park nice warm vehicles over grass, rodents love warm places. They bring dry grass up into the nooks and crannies of the engine and make nests. Warm, toasty, grass. Rodent happiness. The you start your car, the rodent jumps out of the nooks and crannies, but they leave the grass behind. If you drive far enough, the engine gets warm enough to ignite the grass. If that grass is near plastic, a fuel line, or anything filled with a combustible fluid; you get a bonfire. Fire investigators are good at figuring this out.
I took a very brief look into Canadian product liability law as it's different from the USA. For much of Canada, you'd have to prove there was a defect in the vehicle in order for Chrysler to be on the hook. Quebec is different, local code starts with a presumption of defect and the defendant would have to prove it wasn't.
My guess is this liability issue is why your insurance was hedging about pursuing Chrysler. If it's going to cost more for the experts than can be recovered, they may not bother pursuing this very far. Initial subrogation isn't very expensive. Arbitration is also affordable. Trials are not. They are very expensive.
Just some thoughts. Glad you are ok!
