Business

Chrysler agrees to recall Jeeps at risk of fire

DETROIT – After initially defying federal regulators, Chrysler abruptly agreed Tuesday to recall some older-model Jeeps with fuel tanks that could rupture and cause fires in rear-end collisions.

But the recall, which came in an 11th-hour deal between the automaker and the National Highway Traffic Safety Administration, covers only 1.56 million of the 2.7 million Jeeps that the government wanted repaired. The rest are part of a “customer service action” and many may not get fixed.

By giving in to government pressure, Chrysler sidesteps a showdown with the NHTSA that could have led to public hearings with witnesses providing details of deadly crashes. The dispute could have landed in court and hurt Chrysler’s image and its finances.

The deal still leaves some Jeep owners with gas tanks that the NHTSA just two weeks ago said were risky. Chrysler maintains that they are safe and need no repairs.

Earlier this month, the automaker publicly refused the government’s request to recall Jeep Grand Cherokees from model years 1993 through 2004 and Jeep Libertys from 2002 through 2007.

The NHTSA, the U.S. agency that monitors vehicle safety, contends that the Jeep gas tanks can rupture if hit from the rear, spilling gas and causing a fire. The NHTSA said a three-year investigation showed that 51 people had died in fiery crashes in Jeeps with gas tanks positioned behind the rear axle.

Chrysler had until Tuesday to formally respond to the NHTSA, but the deal made the response unnecessary.

Here’s how the recall will work, according to Chrysler:

• The company will recall 1.56 million Libertys from 2002 through 2007 and Grand Cherokees from 1993 through 1998. If they don’t have factory or Chrysler “Mopar” trailer hitches, dealers will install them. The heavy metal hitches bolt to the frame and help bolster protection for the gas tank.

• About 1.2 million Grand Cherokees from the 1999 to 2004 model years will be part of the “customer service action.” Owners will get notices saying their vehicles are fine if they have factory or Chrysler trailer hitches. Dealers will inspect other trailer hitches to make sure they’re secure. But if the Jeeps don’t have trailer hitches, Chrysler won’t do anything, maintaining that the Jeeps are safe and do not need any changes. A Chrysler spokesman was not sure how many of the SUVs are without trailer hitches.

In a letter to Chrysler dated June 3, NHTSA’s Office of Defects Investigation told the company that all of the Jeeps should be recalled. “The defects present an unreasonable risk to motor vehicles,” the letter said, “because people … have burned to death in rear impact crashes.”

An NHTSA spokeswoman said Tuesday evening that she was checking into details of the recall.

Chrysler Group LLC, which is majority owned by Fiat SpA of Italy, wouldn’t say how much the hitches would cost, although they sell for about $200 each on websites.

Erik Gordon, a law and marketing professor at the University of Michigan, said Chrysler realized it was headed for a public-relations disaster and decided to reverse course.

“What happened is they get surprised by how loud the hue and cry is,” Gordon said.

The NHTSA said in a statement that it’s pleased with Chrysler’s decision. The agency plans to keep investigating the issue as it reviews recall documentation from Chrysler.



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