Chrysler Reverses, Will Recall 2.7 Million Jeeps for Fuel Tank Issue

chrysler jeep recall fuel tanks fires
AP
By Bernie Woodall

DETROIT -- Chrysler Group said it would recall 2.7 million older Jeep models after initially fighting a recall request from U.S. regulators in a dispute over crash protection for their fuel tanks.

The recall will affect Jeep Grand Cherokee SUVs from model years 1993 to 2004 and Jeep Liberty SUVs from 2002 to 2007.

While Chrysler stood by its assertion that the vehicles are not defective, the automaker acknowledged consumer concerns and said it may upgrade the rear structure of the vehicles, which have their fuel tanks situated behind the rear axle.

"Chrysler Group's analysis of the data confirms that these vehicles are not defective and are among the safest in the peer group," said a statement from Chrysler, controlled by Italy's Fiat.

On June 3, the National Highway Traffic Safety Administration asked Chrysler to recall the two Jeep models because the placement of the fuel tank leaves them less protected in the event of rear-end crash and could lead to a leak and fire.

NHTSA said Tuesday it was pleased with Chrysler's decision to recall the vehicles, but said it will continue to investigate the issue, including a review of the documents provided by Chrysler.

The safety agency's data shows that 51 people have been killed in rear-end crashes involving the two Jeep models affected. Chrysler early this month said NHTSA's investigation was flawed, and that fuel leaks and fires were extremely rare.

Alec Gutierrez, analyst with industry consultant Kelley Blue Book, said consumers have recently been forgiving of automakers who comply with recalls.

"This outcome will not only help consumers, but also Chrysler, as there was also danger that sales could decline if they had refused the recall," said Gutierrez.


A company spokesman declined to estimate the cost of the recall.

Sandy Munro, president of consultancy Munro & Associates in suburban Detroit, said a conservative estimate of the recall's cost is $300 million.

Chrysler's net income for the first quarter was $166 million.

Resisting a recall requested by federal regulators is rare in the auto industry. The last time Chrysler fought a recall request for one of its vehicles was in 1997.

Munro said that Chrysler was being forced to "fix something that doesn't need to be fixed" and said the incidence of problems for the Jeep models is low considering how many miles they have been driven.

Chrysler earlier this month said that the Grand Cherokee and Liberty SUVs met safety requirements in effect at the time of their manufacture.


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9 Comments

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rk102136

seekthetruth you don't know what you are talking about the jeep is one of the best cars on the road

June 19 2013 at 5:36 AM Report abuse rate up rate down Reply
seekthetruth123

Hey Chrysler , just how many billions of dollars do you still owe the government ? Yet both you and GM continue to build crap cars and trucks !

June 19 2013 at 2:38 AM Report abuse -1 rate up rate down Reply
jjr526

This is stupid. There are so many of these that got hit and didn't blow. Another example of an out of control government.

June 18 2013 at 11:25 PM Report abuse +2 rate up rate down Reply
meyerjrj

If it's made in the United States and successful, our government attacks it! Do they make 20 year old Toyotas and Volvos meet todays standards???

June 18 2013 at 9:56 PM Report abuse +2 rate up rate down Reply
1 reply to meyerjrj's comment
seekthetruth123

No because they met the standards of the time. Sadly the vehicles in question didnt then nor do they now. Chrysler still owes the government billions of dollars and like GM they continue to build crap !

June 19 2013 at 2:41 AM Report abuse -1 rate up rate down Reply
beniehill

Why do they even care they didn't build it.

June 18 2013 at 7:12 PM Report abuse rate up rate down Reply
tomgaj

I had a '97 Grand Cherokee and was rear-ended by a Saturn, which had been rear-ended by a Corolla (The Saturn & I were stopped in traffic).
When all was said and done, the Corolla was a writeoff. The Saturn drove off with the rear bumper spashed in and a square hole punched in his front end by my tow hitch.. I drove my Jeep away after bending the trailer plug back to vertical and kept driving it for another five years. Never found any problems with the fuel tank.

June 18 2013 at 6:55 PM Report abuse +3 rate up rate down Reply
Johnny !

This is precisely why we need strong government oversight!

June 18 2013 at 6:14 PM Report abuse +1 rate up rate down Reply
1 reply to Johnny !'s comment
xessexcva9

The last thiing America needs is more government ANYTHING. If govt. is involved, it's corrupt, off the mark, too late, WAY overbudget, costs jobs, gobbles up tax money, and accomplishes NOTHING. In other words, totally useless.

June 19 2013 at 6:28 AM Report abuse rate up rate down Reply