With Chrysler and NHTSA recalls, you win some, you lose some

Jeep WranglerAnother 221,000 3.6 litre V6 engine Jeep Wranglers from 2012 and 2013 are to be recalled for transmission fluid leaks. Earlier in the week, Chrysler stood to their stand where NHTSA request issued a recall request letter in regards to about of 2.7 million SUVs. National Highway Traffic Safety Administration asked the company on Tuesday to recall Jeep Grand Cherokees produced between 1993 and 2004 and Jeep Liberty produced between the years 2003 and 2007.

The auto majors had however turned down the government’s request to fix fuel tanks that could result in a leak and cause fires in the event of rear end collisions. Auto companies turning down such requests by NHTSA are rare and it is to be seen how the organization reacts to this, as Chrysler states that the vehicles in question are safe, not defective and not liable to cause any fires. The matter had been in discussion since 2010 between both parties, however, at the moment, Chrysler disagrees with the NHTSA recall ruling.

While Chrysler stated that NHTSA’s study is based on incomplete data, they were working to reach a mutual solution to the dispute. Estimates reveal that the SUV’s gas tanks are situated at rear end below the bumper and behind rear axle. This makes them vulnerable to risk in event of a rear end crash. Chrysler on their part state that their Jeeps are safe and have hence turned down the government’s request for recall.

Sergio Marchionne, Chairman and CEO of Chrysler Group LLC said, “The safety of drivers and passengers has long been the first priority for Chrysler brands and that commitment remains steadfast.” “The company stands behind the quality of its vehicles. All of us remain committed to continue working with NHTSA to provide information confirming the safety of these vehicles.”

On the sales front, Chrysler Group US sales dor May 2013 stand at 166,596 units, 11% sales growth when compared to May 2012 sales of 150,041 units. This is also the company’s best may sales in 6 years. Reid Bigland, Head of U.S. Sales said, “Our best May sales in six years enabled us to extend our sales streak to 38-consecutive months of year-over-year sales gains.” “We continue to see strong retail sales throughout our product lineup as eight Chrysler Group vehicles set sales records in May, including best sales ever by the Jeep Wrangler and Compass.”