Daily Management Review

Fire Risks Forces Fiat Chrysler to Recall 570,000 SUVs


Fire Risks Forces Fiat Chrysler to Recall 570,000 SUVs
570,000 SUVs manufactured by Fiat Chrysler Automobiles NV would be recalled, the company announced recently. The reason for the recall is fire risks in two campaigns linked to problems with vanity mirror wiring and a low-pressure hose.
At present the safety efforts of the company under scrutiny from U.S. regulators and Fiat Chrysler made the recalls with this in hindsight say analysts. It agreed to pay another $70 million in fines for failing to report vehicle crash deaths and injuries since 2003 earlier this month
After the U.S. National Highway Traffic Safety Administration opened an investigation in May to determine if vehicles serviced in a prior related recall were at risk for fires, the Italian American automaker said it is recalling 477,000 2011-2012 Jeep Grand Cherokee and Dodge Durango SUVs.
In the previous recall by Fiat Chrysler it was reported that overheating was found in 0.02 percent of vehicles serviced. If the recall procedure was "not followed precisely, may leave vehicles susceptible to a short-circuit, creating a potential fire hazard," Fiat Chrysler said.
The wiring for the lights on vanity mirrors can overheat, which potentially could lead to fires if serviced improperly, and needs to be checked in 352,831 SUVs in the U.S.
The vanity-mirror recall applies to 2011 and 2012 Jeep Grand Cherokees and Dodge Durango SUVs produced before Sept. 2, 2012. The issue will be fixed by resecuring the wiring in the vehicles' headliners with a new adhesive, the automaker says.
Dealers will secure wiring in the overhead lining of the SUVs with a new adhesive.
On order to inspect and in some cases replace a clamp that secures a low-pressure return hose, Fiat Chrysler also said it was recalling 93,000 2015 Jeep Compass and Patriot SUVs.
There could be rapid loss of power steering fluid - a fire hazard caused by out of position of clamps in some vehicles produced during a five-month period this year, the company said. Owners may also have trouble steering.
Approximately 413,000 SUVs in the United States, 32,000 in Canada, 16,000 in Mexico and 108,000 outside North America will be included in the recall.
It is not aware of any related injuries or crashes connected to either new recall, Fiat Chrysler said.
Problems in its electronic system for monitoring and reporting safety data was the reason behind Fiat Chrysler's failure to report crash deaths and injuries since 2003, said the NHTSA earlier this month.
The problem, NHTSA said, included “improper coding and failure to account for changes in brand names," and thus it can be said that the company probably did not intentionally withholding information.
A $105 million settlement for mishandling nearly two dozen recall campaigns covering 11 million vehicles, including a $70 million fine was agreed to be paid by Fiat Chrysler in July. The company also agreed to a three-year consent agreement and monitoring by the former Transportation Secretary, Rodney Slater.
In what is a record for the automaker, Fiat Chrysler has recalled around 12 million vehicles this year in the United States in more than 40 separate recalls.
(Source:www.reuters.com  & www.nytimes.com)