Wednesday, June 19, 2013

Chrysler wins cut from feds, recalls 1.56 million Jeeps

UPDATE 5:09 p.m. ET: Government lets Chrysler recall fewer Jeeps than first required. 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

Chrysler Group LLC said on Tuesday it would recall 1.56 million older-model Jeeps with fuel tanks positioned behind the rear axle to resolve a dispute with federal regulators who said the vehicles posed an unacceptable risk of fires in rear-end crashes.

Chrysler announced Tuesday that it would bow to the US safety regulator's pressure to recall 2.7 million Jeep Liberties and Jeep Grand Cherokees over a fire risk. Two weeks after rejecting the National Highway Traffic Safety 

After initially refusing, Chrysler has agreed to comply with a formal government request to recall 2.7 million model Jeeps. According to regulators, the Jeep recall will include Cherokee and Liberty models that can catch fire due to the position of the

Chrysler says it's doing this to re-assure customers.

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Chrysler wins cut from feds, recalls 1.56 million Jeeps

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