Chrysler refused to recall more than 2.7 million older model Jeeps causing a precedent which raises numerous questions. The National Highway Traffic Safety Administration states that the gas tanks of many Grand Cherokee and Liberty Jeeps are not on the safe side. The regulator insisted a withdrawal of all 2.7 million cars to take place. The NHTSA argued that those models have fuel tanks behind the axle which leaves them less protected in an event of rear collision and could cause a fire. The agency referred to 37 accidents that caused fires and resulted in 51 deaths.
Chrysler defended itself stating its models are meeting safety standards. Furthermore, company argued that many other vehicles were using same technology. The Fiat owned company said NHTSA did an incomplete research and all of the incidents cited are due to high speed collision.
“The company stands behind the quality of its vehicles,” chief executive Sergio Marchionne said, cited by Guardian. “All of us remain committed to continue working with NHTSA to provide information confirming the safety of these vehicles.”
Chrysler has been given a 2 week deadline to answer the agency. If the answer of the company is not credible a public hearing might be scheduled. The final decision may influence car re-sale price although history data showed old model car prices seem to be resistant to those kind of news.
“I would advise consumers to do this, it would eliminate the most common failure,” said for CNN Clarence Ditlow, executive director for the Center for Auto Safety, the leading advocate for the recall. “Just save your receipt, you could get the money back once there is arecall.”
Fiats share price looks not influenced to the matter as it experienced a 1.29% jump for the day.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
