Chrysler refuses Jeep recall, saying fuel tanks are safe

http://www.guardian.co.uk/business/2013/jun/05/chrysler-refuses-jeep-recall-tanks

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Chrysler is refusing to recall 2.7m older-model Jeeps, saying that US regulators' concerns about the vehicles' fuel tanks causing fires and deaths are ill-founded.

In a 3 June letter to Chrysler, US road safety authority the NHTSA said an investigation had revealed "numerous fire-related deaths and injuries, fires that did not lead to deaths and fuel leaks in rear impacts". The agency said in the 13-page letter that 51 people have been killed in rear-end crashes and fires involving Grand Cherokee and Liberty vehicles. The NHTSA is seeking to recall the Jeep Grand Cherokee for model years 1993 to 2004 and the Jeep Liberty model years 2002 to 2007. The agency says the models have fuel tanks behind the axle that leave them less protected in the event of a rear-end collision and could potentially cause a fuel leak and lead to fire.

Chrysler, the US carmaker majority-owned by Fiat of Italy, has said in a statement that it does not intend to recall the SUVs and regards them as safe. "The company stands behind the quality of its vehicles," chief executive Sergio Marchionne said. "All of us remain committed to continue working with NHTSA to provide information confirming the safety of these vehicles."

It is unusual for a carmakers to challenge the NHTSA on such an issue. In a statement David Strickland, the top US automotive safety official, urged Chrysler to reconsider its decision. "The driving public should know that NHTSA is actively investigating this issue and is requesting that Chrysler initiate a safety recall and notify all affected owners of the defect," he said. "NHTSA hopes that Chrysler will reconsider its position and take action to protect its customers and the driving public.

"Our data shows that these vehicles may contain a defect that presents an unreasonable risk to safety, which is why we took the next step of writing Chrysler." The company said its analysis showed that fuel leaks and fires occurred "less than one time for every million years of vehicle operation". Chrysler has until 18 June to formally respond to the NHTSA. If it cannot convince the watchdog to drop the recall request, the safety agency could hold a public hearing on the matter.

Eventually, Strickland may issue a final decision and order Chrysler to conduct a recall. Even after that Chrysler can challenge that order in federal court. NHTSA can take Chrysler to court to comply with the recall order. And Chrysler may be forced to send letters to owners of the affected vehicles that it is resisting NHTSA's recall order.

In the past several years Chrysler has conducted 52 recalls, 49 of them instigated by itself.

Refusing a recall is rare in the auto industry. The last time Chrysler did so was in 1997. Toyota initially resisted the recall of its 2010 Prius hybrid for brake problems.

Ford recalled its Freestar and Monterey minivans for transmission problems in 2012 after years of haggling with the NHTSA.