Jeep recall would be costly, but so would PR hit

USA TODAY: Chrysler’s refusal of a government request to recall 2.7 million Jeeps may carry a high public relations price for the company, but doing the recall could be even costlier — both for Chrysler and for the Obama Administration, experts say.

The National Highway Traffic Safety Administration asked Chrysler late Monday to recall 1993 through 2004 Jeep Grand Cherokees and 2002 through 2007 Jeep Libertys because of a higher rate of fatal fires in rear-end crashes than similar vehicles from those years. Chrysler maintains that the differences in rate are so small as to be statistically insignificant. They now will exchange data and NHTSA ultimately could take Chrysler to court to force a recall.

But the statistical arguments may be irrelevant for Chrysler in the court of public opinion. … (more)

EDITOR: Fiat aquired control of Chrysler in 2009. We once had three Fiat dealerships in Hungary and closed all three down rather than deal with a cheating Fiat organization, often referred to as the Fiat Mafia. In Italy Fiat tells the government what to do. Let’s see who tells who what here in the USA.

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