Chrysler, NHTSA strike last-minute deal on Jeep recall request. The was widespread coverage of the late breaking deal between Chrysler and NHTSA regarding the agency’s requested recall of Jeep Grand Cherokee and Jeep Liberty vehicles. All of the major network news broadcasts reported on the story as did most of the major print sources and news wires. Coverage of NHTSA was largely positive, however, many reports emphasized that the deal struck allowed Chrysler to avoid admitting that its vehicles were defective even while offering to repair the vehicles by installing a crash absorbing trailer hitch. ABC World News (6/18, story 7, 1:50, Stephanopoulos, 7.43M) reported that “Chrysler initially defied the government refusing to recall more than a million models despite the government’s claims that 51 people died from fires after the Jeeps were hit from behind.” However, Chrysler has relented and while “the auto makers still insist there is no defect,” it “says because the issue raised concerns for its customers it will conduct a voluntary campaign.” While Chrysler won’t add any shield, “it will install a trailer hitch on any 1993 to 1998 Grand Cherokee and 2002 to 2007 Liberty” which it says this will help absorb crash forces in rear end collisions. NBC Nightly News (6/18, story 11, 0:30, Williams, 7.86M) and the CBS Evening News (6/18, story 8, 0:25, Pelley, 5.58M) also offered brief reports. The New York Times (6/19, Vlasic, Subscription Publication, 1.68M) reports that a high-level phone call “took place Monday between Sergio Marchionne, Chrysler’s chief executive, and David Strickland, head of the National Highway Traffic Safety Administration, according to a person with knowledge of the call who spoke on condition of anonymity because the conversation was private.” In return for agree to put trailer hitches on some of the vehicles, “Mr. Marchionne asked that regulators refrain from continuing to describe the vehicles as defective.” Meanwhile, “the safety agency said in a statement that it was satisfied with the move — without including any comments about whether the vehicles had defects.” USA Today (6/18, Healey, 1.71M) reports that “Chrysler Group agreed to a recall it has fought for two weeks, but only after the government slashed the number of Jeeps involved in the recall by more than a million, saving the automaker tens of millions of dollars.” USA Today ntoes that about 1.1 million 1999-2004 Grand Cherokees were excluded “that were part of the National Highway Traffic Safety Administration’s original recall request for 2.7 million vehicles.” However, “they’ll get nearly the same treatment as the recalled models, but Chrysler doesn’t have to refer to those as a recall and such actions are subject to different requirements.” The Los Angeles Times (6/18, Bensinger, 692K) points out that “the decision marks a decided about-face for the automaker, which has loudly protested the NHTSA findings, as well as the allegations by safety advocates that the two Jeep models were far more prone to such fires than comparable vehicles from other manufacturers.” Meanwhile, “Chrysler said it did not know how many vehicles would require the installation of trailer hitches, which it will install at no charge.” Bloomberg News (6/19, Keane, Clothier) explains that “the negative publicity that would have persisted through regulatory or court challenges may have pushed Chrysler Chief Executive Officer Sergio Marchionne to change his mind, said Michelle Krebs, a senior analyst for auto-researcher Edmunds in Santa Monica, California.” Meanwhile, “NHTSA will continue its investigation ‘pending a review of the documents provided by Chrysler in its recall action,’ the agency said in an e-mailed statement.” The Detroit News (6/19, Shepardson, 119K) reports, “In not agreeing there is a formal defect, Chrysler won a key concession that was central to averting a continued challenge” The News says that Marchionne “sealed the deal Tuesday with Transportation Secretary Ray LaHood and NHTSA Administrator David Strickland in a telephone call, according to two officials briefed on the call.” Meanwhile, “experts say the deal means the issue will quickly fade from the headlines.”
Posted on: Wed, 19 Jun 2013 21:06:02 +0000
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