Chrysler Agrees to Recall 27 Million Jeep Grand Cherokee and Liberty Suvs

After a brief public controversy, Italian-owned American auto makerChryslerhas announced a major recall of 2.7 million Jeep Liberty and Jeep Grand Cherokee SUVs which it says could pose a fire risk in the event of a collision.

The problems were identified in early June 2013 by the U.S. government'sNational Highway Traffic Safety Administration(NHTSA). According to a report issued by the NHTSA, Jeep Grand Cherokees from 1993 to 2004 and Jeep Libertys from 2002 to 2007 have a design flaw which could result in the fuel tank being punctured during a rear-end collision. The resulting fuel leak could cause a fire. NHTSA claimed that up to 51 deaths could be attributed to fires caused by punctured fuel tanks in these SUVs. On the basis of this assessment, NHTSA requested that Chrysler conduct a voluntary recall of SUVs from these years and provide necessary refitting to reduce the risk.

Chrysler disputes the NHTSA assessment.CNBCquoted a public statement by Chrysler that, "the subject vehicles are not defective and their fuel systems do not pose an unreasonable risk to motor vehicle safety in rear-impact collisions." Despite insisting that NHTSA is exaggerating the danger, Chrysler has issued the recall anyways. According toother press reports, Chrysler dealers, "will inspect the vehicles and install trailer hitches to protect the gas tanks." That step will include hitches for vehicles that don't have them, and new replacement hitches for vehicles on which the original hitches are broken or are non-Chrysler parts.

However, there are some important limitations to the recall announcement, which,CNNreports, has left some consumer protection groups unhappy. The Centre for Auto Safety had suggested that protective steel plates be installed over the gas tank, plus a new fuel filler hose and fuel tank check valve, but Chrysler says those are unnecessary. In addition, the Grand Cherokees for 1999 to 2004 will be inspected, but those which were sold without a trailer hitch won't be given one. Chrysler will still pay for a genuine Chrysler part to replace third-party trailer hitches on those SUVs.News reportsspeculated that Chrysler originally hoped not to issue the recall at all, but buckled under the threat of public hearings that could cause damage to its public reputation.

Chrysler has had a difficult time with recalls in the summer of 2013. York University professor of economicsBernie Wolfestimated that the Jeep recall would add $300 million in unanticipated costs to the company's balance sheet. Just days later, Chrysler was forced toissue another recall, this one for 840,000 cars, SUVs, and minivans covering potential flaws with their head rests and air bags. The vehicles affected in those recalls are the Chrysler Sebring, Chrysler 200, Dodge Avenger and Jeep Liberty, model years 2011 to 2013, and the Dodge Nitro, model years 2011 to 2012.

Chrysler vehicle owners can check whether their vehicle is covered by the new recall by inputting part of their Vehicle Identification Number (VIN) on Chrysler'sofficial recall tracking website.

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