Chrysler has announced a recall that will have over 11,000 Chrysler, Dodge, and Jeep owners, bringing in their vehicles to get the steering column inspected. The recall involves some 2011 model year vehicles that may have been built with a missing or incorrectly installed steering column pivot rivet. The missing or incorrectly installed rivet does not affect the steering of the vehicles under normal driving conditions, but in the event of an accident, the steering column may not be able to support the load of the airbag deployment. This condition may increase the potential for injury in the event of a frontal crash. Owners wanting more information on the recall can contact Chrysler at 1-800-853-1403. The vehicles involved in this recall are:
Category Archives: Chrysler
Alleged Unfair Dealings At Chrysler Grow
A new dealership group know as “California Superstores” is buying up former Chrysler dealerships in California as a way to beat the high cost of real estate and rebuild Chrysler’s slow market in the United States. Complaints from existing Chrysler dealers say that the alliance between Chrysler and the New York Hedge fund is leading to an unfair advantage for existing dealerships. They have alleged that Chrysler is providing below market rent subsidies that have not been offered to them. Peter Welch, president of the California dealers association, said he is unfamiliar with the terms of the California Superstores venture, but has heard many concerns among existing Chrysler dealers.
California Superstores has already opened six stores in California, and plans to open eight more in areas where Chrysler has done poorly. The plan is to eventually open stores on the East Coast, according to Carlos Hoz de Vila, managing partner of California Superstores.
In an unrelated situation, the state dealers association has brought forward complaints against Chrysler, saying that they are operating an illegal factory owned store at Motor Village L.A. in downtown Los Angeles. The California New Motor Vehicle Board has asked the state Department of Motor Vehicles to investigate the complaint.
Chrysler has recently announced that they have paid back $7.5 billion in government loans allowing them to continued their integration with Fiat, a merger that has been in the making for almost two years now.
NHTSA Investigates Jeep Wranglers
The National Highway Traffic Safety Administration (NHTSA) has opened an investigation into some 2007-2008 Jeep Wrangler vehicles after receiving almost 30 complaints of illuminated airbag warning lights. The investigation has lead the NHTSA to a defective clock spring wiring assembly that may prevent the airbag from deploying during an accident. The problem seems to be more prevalent in right hand drive Wranglers, but the NHTSA wants to investigate the problem further before issuing a recall. If the investigation should lead to a recall, about 220,000 Jeep Wranglers could be affected.
Chrysler To Pay Back Government Loans
It’s been a slow recovery, but on Thursday, Chrysler announced that they expect to pay back the $7.5 billion in Government loans by the end of next month. Although the details are still being negotiated, Chrysler hopes to sell new bonds to investors and use that money to help pay back the loans. This will allow Chrysler to strengthen its alliance with Fiat and revamp its operations to gain market shares.
According to Rebecca Lindland, an analyst with the research firm IHS Global Insight, “Tuning up their balance sheet and reducing debt will help Chrysler direct more money towards product development.” First on the list is to add more fuel efficient cars to its truck heavy lineup. The integration of Fiat and Chrysler will speed up the arrival of new Fiat based models to be sold to the American market. Without the psychological and financial drag of the loans Chrysler can start to slowly rebuild its company.
Fiat Increases Ownership Of Chrysler
On Monday, Fiat announced they will be increasing ownership of Chrysler by 16% for a total 46% of the company. Once the auto manufacturers government loans have been paid, Fiat hopes to take a 51% majority stake in Chrysler as early as by the end of this year.
Sergio Marchionne, chief executive of both auto makers, says that this is an important step towards the integration of Fiat and Chrysler, started under two years ago. The result will be the creation of a global auto maker. They have chosen to speed up the pace to bring about the birth of a single group capable of international activities. Fiat outlined its plans after reaching an agreement with Chrysler’s shareholders, which include the U.S. Treasury Department, the United Auto Workers’ health trust fund and the Canadian government. The move shows that there is confidence in Chrysler turning around and becoming a profitable auto manufacturer. It does not mean Chrysler is fixed, it does show that Marchionne believes it is on track.
Chrysler/Dodge Minivan Recall For Ignition Problem
Chrysler’s popular 2010 Town & Country minivan as well as the 2010 Dodge Journey and 2010 Dodge Grand Caravan will be recalled after receiving 32 complaints and 465 warranty claims of the engine shutting down without warning. An investigation initiated last September found that driving on rough roads could knock the ignition key into the accessory position, turning off the engine unexpectedly. Owners will be notified of the recall starting in April, where dealers will replace the Wireless Ignition Node (WIN) module, free of charge. Owners can get more information on the recall by contacting Chrysler at 1-800-853-1403 or the National Highway Traffic Safety Administration safety hot line at at 1-888-327-4236 (TTY 1-800-424-9153 ), or go to http://www.safercar.gov .
Will Fiat Recall Their Jeep Grand Cherokee
Ralph Nader is encouraging Fiat to Recall their recently acquired 1993-2004 Jeep Grand Cherokee line because of a vulnerable fuel tank design. The Center for Auto Safety encouraged an investigation in October saying that the fuel tank on these vehicles are not only poorly designed, but are installed behind the rear axle below the bumper which puts them at an increased impact risk. It was also found that the routing of the fuel filler hose increases the possibility of it being pulled out of the tank in a crash. Nader went as far as calling the Grand Cherokee “a modern day Pinto for the soccer mom.”
According to Chrysler, the fuel tanks are not defective. They say that according to their internal studies, the tanks on the Grand Cherokee are no more susceptible to fires in rear impact crashes than any other similar models from other companies.
Record Recalls For Auto Industry In 2010
According to the National Highway Traffic Safety Administration (NHTSA), 2010 had the fourth largest number of recalls since the agency started keeping track in 1966. The total amount of recalls reached 20.3 million vehicles with Toyota leading the pack with 6.7 million vehicles recalled. Though this may seem like a record amount, in 2004 the auto industry had the highest recalls with almost 31 million units recalled. While Japanese vehicles have always been known for quality and safety, 2010 was the first year that three Japanese automakers ended up in the top five.
Safety recalls have become more common since 2000, when Congress passed legislation to spot safety defects more quickly. This was in direct response to a massive Firestone recall for defective tires. In 2010, as a result of Toyota’s unintended acceleration recall, Congress, not only increased penalties against automobile companies, but also increased safety standards for vehicles as well as gave the government more power when it comes to recalls. As a resulted more and more recalls are being initiated by automakers, also known as “voluntary recalls.” This does not mean that automakers have the choice to initiate a recall, it only means the recall was not enforced by the NHTSA.
Below is a list of the top automakers number of recalls from 2010:
- Toyota: 17 recalls – 6.7 million vehicles
- General Motors: 21 recalls – 4 million vehicles
- Honda: 15 recalls – 2.4 million vehicles
- Nissan: 16 recalls – 2.1 million vehicles
- Chrysler Group: 17 recalls – 1.6 million vehicles
- Ford Motor: 9 recalls – 581,107 vehicles
- Volkswagen: 2 recalls – 393,188 vehicles
- BMW: 15 recalls – 288,503 vehicles
- Mazda: 3 recalls – 243,500 vehicles
Whether it be the increased involvement of government in the auto industry or the the increased safety features in today’s automobiles, traffic deaths last year also fell to the lowest level in 60 years.
