06 Jeep Rubicon Unlimited on 2040-cars

Auto blog

Federal investigations about safety of rear-mounted gas tanks is nothing new

The National Highway Traffic Safety Administration and Chrysler are currently making waves in our daily news feeds due to a disagreement over the safety of a few million Jeep Liberty and Grand Cherokee models. Specifically, NHTSA has asked Chrysler to recall the SUVs because of the location of their fuel tanks, but you may be interested to know that requests such as this are nothing new.
Besides the two Jeep models, NHTSA has launched investigations over the years in such models as the Ford Crown Victoria (and its police-car counterpart), GM pickups built between 1972 and 1987, and rather famously the Ford Pinto.
Understanding how automakers and NHTSA have dealt with fuel-tank-safety concerns in the past may offer a better understanding of how Chrysler and the government agency will settle their current dispute. Check out the complete article from The Detroit News here.

NHTSA closes investigation into Jeep Liberty fires

The investigation that the National Highway Traffic Safety Administration opened into the Jeep Liberty in October 2013 has been closed. NHTSA received two (!) complaints about fires starting in the driver's door, thought to be caused by the master power window switch. The initial estimate was that 80,000 Libertys could be roped into a possible recall, but according to a report in the Detroit News the agency examined records for 425,000 Chrysler products that used the same window switch, including the Dodge Nitro and Chrysler Town & Country minivan.
After canvassing 265 warranty claims related to the master switches, NHTSA concluded that the rate of fires compared to the "large population of vehicles" was rather low, and that there was no trend pattern behind the few issues it did find. Perhaps with that, and the closure of the trailer hitch investigation, the Liberty can finally rest in peace.

Chrysler banks $507 million in Q2, trims 2013 earnings forecast

Chrysler has some good news and some bad news. First, profits were up 16 percent over the second quarter of 2012, bringing the Auburn Hills, Michigan-based manufacturer $507 million on the back of strong demand for trucks and SUVs (a recurring theme this quarter, particularly in the US). Q2 revenue was up as well, from $16.8 billion in 2012 to $18 billion in 2013. The bad news is that the Pentastar's overall earnings forecast for net income in 2013 has been trimmed from $2.2 billion to between $1.7 and $2.2 billion, according to Automotive News.
In addition to the adjusted net income forecast, Chrysler tweaked its operating profit from $3.8 billion to between $3.3 and $3.8 billion. This has gone largely unexplained by Chrysler, perhaps hoping the news of a three-percent increase in its transaction prices for Q2 will allow it to sweep this adjustment under the rug.
The star of the show for Chrysler has been its US sales, which saw a 10-percent jump, both bettering the industry average of eight percent and improving over the same stretch of 2012. As with the increase in transaction prices, Chrysler has the new Ram pickup and Jeep Grand Cherokee to thank. Perhaps most worrying from this report, though, is that every brand in the automaker's stable saw an increase in sales... except for the Chrysler brand itself.