Chrysler Group LLC avoided its name getting dragged by way of the mud, potentially for years, by agreeing to a deal using the National Highway Traffic Safety Administration to recall some older Jeep models as a result of fire risks, according to analysts.
“Chrysler certainly calculated the risks and positive aspects and concluded that the cost to repair these vehicles is just not as expensive as the potential lengthy-term harm that might possibly come from poor PR,” stated Edmunds.com senior analyst Michelle Krebs. “This was most likely the right decision by Chrysler.”
The Auburn Hills-based automaker Tuesday afternoon stated that it agreed to voluntarily recall 56 million 1993-2004 Jeep Grand Cherokee and 2002-07 Jeep Liberty vehicles and conduct a “consumer satisfaction action” for 14 million 1999-2004 Jeep Grand Cherokee.
NHTSA originally requested Chrysler recall all the 7 million Jeep SUVs as a result of a risk of a fuel tank fire in a rear-finish collision.
A NHTSA investigation identified 51 deaths in 37 rear-finish collisions in the vehicles because of the placement of the fuel tank being located behind solid rear axles. The placement of the tanks behind the rear axle and their height above the road is usually a style defect, based on NHTSA. Such failure can lead to fuel leakage, which at the presence of external ignition sources can lead to a fire.
Even while itthreeisthree fixing the vehicles, Chrysler, as it previously did, nevertheless contends the cars are “not defective and are amongst the safest in the peer group.”
“Nonetheless, Chrysler Group recognizes that this matter has raised concerns for its shoppers and wants to take further actions, in coordination with NHTSA, to provide additional measures to supplement the safety of its vehicles,” Chrysler stated in a statement Tuesday afternoon.
The “further measures” involve adding a trailer hitch assembly towards the vehicles to greater guard the gas tank.
For the 56 million Grand Cherokees and Libertys involved in the voluntary recall, Chrysler dealers will install a Mopar trailer hitch towards the vehicles without having any trailer hitch or non-Mopar or -factory trailer hitches.
The fix for the 14 million Grand Cherokees portion of the "consumer service (or satisfaction based on the statement) action" gets somewhat significantly more complex. If cars don't have a hitch no action is critical. If the automobile does have 1, buyers may be asked to bring in the vehicle so the type and condition of the hitch can be inspected and replaced, if crucial.
Chrysler stated the cost to fix the vehicles is but undetermined considering it is unknown how plenty of trailer hitches will need to be installed.
NHTSA originally sent Chrysler a letter dated June three asking the home business to voluntarily recall 7 million Grand Cherokees from 1993 by means of 2004, and Jeep Liberty models from 2002 by way of 2007, as a result of a risk of a fuel tank fire in a rear-end collision.
On June 4, Chrysler issued a statement and three-page white paper report supporting its decision not to voluntarily recall the vehicles, saying ”the organization does not agree with NHTSA’s conclusions and doesn't intend to recall the vehicles cited at the study.”
Jared Rowe, president of Kelley Blue Book, said while Chrysler however contends there is certainly absolutely nothing wrong with the vehicles, the voluntary recall shows they have to have customers to believe secure in the vehicles.
“Chrysler has been gradually improving marketplace share because 2009 given that of the improvements they've made to their item lineup and their stance might possibly only assist to boost their brand image and sales,” he stated.
Chrysler has recorded 38 consecutive months of year-over-year sales gains and record profits considering it emerged from a federally-backed bankruptcy in 200
Analysts in the past told MLive Autos that if Chrysler didn't back down from its stance it may have meant months, if not years, of hazardous litigation for the automaker.
NHTSA opened an research into the Jeeps in August 2010 in the request of the Center for Auto Safety, a Washington, D.C. According to4thefour organization's site, it sent numerous letters to Chrysler relating to the fires.
According to4thefour Associated Press, NHTSA said in a statement that it truly is pleased with Chrysler's decision. The agency plans to maintain investigating the concern as it reviews recall documentation from Chrysler.
Alec Gutierrez, senior analyst at Kelley Blue Book, said the voluntary recall and “consumer service action” shouldn’t have a lasting effect on Chrysler compared to a battle using the government.
“This outcome will not only help consumers, then again too Chrysler, as there was as well danger that sales might possibly decline if they had refused the recall,” he stated. “Consumers have been forgiving once producers have chosen to comply with NHTSA requests in current years and at this time that Chrysler has softened their stance, they have to escape any negative impact to their brand.”
Edmunds.com reports there were 659 recalls issued by NHTSA last year, and none of them appeared to have had a lasting negative impact on any brand.
Chrysler said notifications to potentially impacted shoppers must be out inside 30 days. Shortly right after the notifications are sent out, consumers might possibly then take the automobile into the dealership for an inspection.
“Chrysler Group regards safety as a paramount issue and doesn't compromise on the safety of our consumers and their households,” stated Chrysler Senior Vice President of Corporate Communications Gualberto Ranieri in a follow-up statement to4thefour automaker’s original release Tuesday afternoon.
Customers who have questions or concerns can call the Chrysler's customer care line: 1-800-334-920.
“Chrysler certainly calculated the risks and positive aspects and concluded that the cost to repair these vehicles is just not as expensive as the potential lengthy-term harm that might possibly come from poor PR,” stated Edmunds.com senior analyst Michelle Krebs. “This was most likely the right decision by Chrysler.”
The Auburn Hills-based automaker Tuesday afternoon stated that it agreed to voluntarily recall 56 million 1993-2004 Jeep Grand Cherokee and 2002-07 Jeep Liberty vehicles and conduct a “consumer satisfaction action” for 14 million 1999-2004 Jeep Grand Cherokee.
NHTSA originally requested Chrysler recall all the 7 million Jeep SUVs as a result of a risk of a fuel tank fire in a rear-finish collision.
A NHTSA investigation identified 51 deaths in 37 rear-finish collisions in the vehicles because of the placement of the fuel tank being located behind solid rear axles. The placement of the tanks behind the rear axle and their height above the road is usually a style defect, based on NHTSA. Such failure can lead to fuel leakage, which at the presence of external ignition sources can lead to a fire.
Even while itthreeisthree fixing the vehicles, Chrysler, as it previously did, nevertheless contends the cars are “not defective and are amongst the safest in the peer group.”
“Nonetheless, Chrysler Group recognizes that this matter has raised concerns for its shoppers and wants to take further actions, in coordination with NHTSA, to provide additional measures to supplement the safety of its vehicles,” Chrysler stated in a statement Tuesday afternoon.
The “further measures” involve adding a trailer hitch assembly towards the vehicles to greater guard the gas tank.
For the 56 million Grand Cherokees and Libertys involved in the voluntary recall, Chrysler dealers will install a Mopar trailer hitch towards the vehicles without having any trailer hitch or non-Mopar or -factory trailer hitches.
The fix for the 14 million Grand Cherokees portion of the "consumer service (or satisfaction based on the statement) action" gets somewhat significantly more complex. If cars don't have a hitch no action is critical. If the automobile does have 1, buyers may be asked to bring in the vehicle so the type and condition of the hitch can be inspected and replaced, if crucial.
Chrysler stated the cost to fix the vehicles is but undetermined considering it is unknown how plenty of trailer hitches will need to be installed.
NHTSA originally sent Chrysler a letter dated June three asking the home business to voluntarily recall 7 million Grand Cherokees from 1993 by means of 2004, and Jeep Liberty models from 2002 by way of 2007, as a result of a risk of a fuel tank fire in a rear-end collision.
On June 4, Chrysler issued a statement and three-page white paper report supporting its decision not to voluntarily recall the vehicles, saying ”the organization does not agree with NHTSA’s conclusions and doesn't intend to recall the vehicles cited at the study.”
Jared Rowe, president of Kelley Blue Book, said while Chrysler however contends there is certainly absolutely nothing wrong with the vehicles, the voluntary recall shows they have to have customers to believe secure in the vehicles.
“Chrysler has been gradually improving marketplace share because 2009 given that of the improvements they've made to their item lineup and their stance might possibly only assist to boost their brand image and sales,” he stated.
Chrysler has recorded 38 consecutive months of year-over-year sales gains and record profits considering it emerged from a federally-backed bankruptcy in 200
Analysts in the past told MLive Autos that if Chrysler didn't back down from its stance it may have meant months, if not years, of hazardous litigation for the automaker.
NHTSA opened an research into the Jeeps in August 2010 in the request of the Center for Auto Safety, a Washington, D.C. According to4thefour organization's site, it sent numerous letters to Chrysler relating to the fires.
According to4thefour Associated Press, NHTSA said in a statement that it truly is pleased with Chrysler's decision. The agency plans to maintain investigating the concern as it reviews recall documentation from Chrysler.
Alec Gutierrez, senior analyst at Kelley Blue Book, said the voluntary recall and “consumer service action” shouldn’t have a lasting effect on Chrysler compared to a battle using the government.
“This outcome will not only help consumers, then again too Chrysler, as there was as well danger that sales might possibly decline if they had refused the recall,” he stated. “Consumers have been forgiving once producers have chosen to comply with NHTSA requests in current years and at this time that Chrysler has softened their stance, they have to escape any negative impact to their brand.”
Edmunds.com reports there were 659 recalls issued by NHTSA last year, and none of them appeared to have had a lasting negative impact on any brand.
Chrysler said notifications to potentially impacted shoppers must be out inside 30 days. Shortly right after the notifications are sent out, consumers might possibly then take the automobile into the dealership for an inspection.
“Chrysler Group regards safety as a paramount issue and doesn't compromise on the safety of our consumers and their households,” stated Chrysler Senior Vice President of Corporate Communications Gualberto Ranieri in a follow-up statement to4thefour automaker’s original release Tuesday afternoon.
Customers who have questions or concerns can call the Chrysler's customer care line: 1-800-334-920.
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| Jeep Grand Cherokee was struck from the rear by a Dodge Dakota pickup truck on March 6, 2012 |
