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Chrysler Recalls Jeep SUVs For Ignition Switches

The ignition switch defects that engulfed General Motors are now a rapidly growing problem at Chrysler. Chrysler said Tuesday it is recalling up to 792,300 older Jeep SUVs worldwide because the ignition switches could fall out of the "run" position, shutting off the engine and disabling air bags as well as power-assisted steering and braking. That's the same problem that has forced GM to recall more than 15 million cars over the last six months. Chrysler's recall covers 2005-2007 Grand Cherokees and 2006-2007 Commanders. The company said it is not sure exactly how many will be recalled, but said it will notify customers by mid-September. Chrysler said an outside force such as a driver's knee can knock switches out of the "run" position. Engineers are working on a fix. The Auburn Hills, Michigan-based automaker, now part of Fiat Chrysler Automobiles NV, said it knows of no related injuries and only one accident. But it said owners should keep clearance between their knees and keys until repairs are made. Chrysler has now recalled more than 1.7 million vehicles for ignition-switch problems. In June, the company added 696,000 minivans and SUVs to a 2011 recall to fix faulty ignition switches. Those recalls covered Dodge Journey SUVs and Chrysler Town & Country, Dodge Caravan and Volkswagen Routan minivans - which Chrysler made for the German automaker - from the 2007 to 2010 model years. Tuesday's recall is the outgrowth of two investigations opened by U.S. safety regulators last month as part of a broader probe into ignition-switch and air-bag problems across the auto industry. The agency wouldn't say Tuesday whether its investigation could lead to recalls at other automakers. The National Highway Traffic Safety Administration said in June that it was investigating Jeep Commanders and Grand Cherokees after getting 32 complaints that a driver's knee can hit the key fob or key chain, causing the ignition switch to move out of position. The federal investigation is still open. The agency said Tuesday that it is requesting additional information from Chrysler to ensure that its repairs will be effective. The investigations and recalls come after GM bungled an ignition-switch recall of older small cars. GM acknowledged that it knew of the ignition problem for more than a decade but failed to recall the cars until earlier this year, when it recalled 2.6 million small cars such as the Chevrolet Cobalt.

Stellantis moves to set up its own lending unit

Stellantis is buying Houston-based auto lender First Investors Financial Services Group to set up its own finance arm in the U.S., a move that should support sales and eventually boost profit. The only major traditional automaker in the U.S. without its own finance company agreed to pay $285 million to a group of investors led by Gallatin Point Capital and Jacobs Asset Management, according to a statement. The transaction is expected to close by year-end. Stellantis was formed via the merger between Fiat Chrysler and PSA Group early this year. Carlos Tavares, the PSA boss who became the combined company’s chief executive officer, called the deal to acquire First Investors a milestone that will increase earnings and enhance customer loyalty. “Direct ownership of a finance company in the U.S. is a white-space opportunity which will allow Stellantis to provide our customers and dealers a complete range of financing options,” Tavares said Wednesday in the statement.  Having an in-house finance company has helped rivals General Motors Co. and Ford Motor Co. pad profits, especially during the global semiconductor shortage that has limited production and crimped sales. GM bought subprime lender AmeriCredit Corp. in 2010 and renamed it GM Financial. The operation generated a $2.76 billion profit in the first half -- roughly a third of the companyÂ’s adjusted earnings before interest and taxes. Trouble for Santander? The First Investors acquisition could spell trouble for Chrysler Capital, the operation that Santander Consumer USA Holdings Inc. and Chrysler set up in 2013 before the U.S. automaker completed its merger with Fiat. In a statement, Santander Consumer said itÂ’s committed to supporting Stellantis through the term of their existing agreement and its transition. Santander Consumer will also have “ongoing conversations with Stellantis about long-term mutually beneficial opportunities beyond 2023,” the company said, adding that its consumer business remains strong and has “delivered solid results for our shareholders.” This, along with support from its parent company, will allow the lender to “pursue additional opportunities as they arise.” The lenderÂ’s U.S.-listed stock fell 1.5% in New York trading Wednesday after Bloomberg reported Stellantis was preparing to announce a new finance partner. Stellantis shares rose as much as 1.3% in Paris trading Thursday.

2021 Chrysler Pacifica gets fresh face and brings back all-wheel drive

The rumors were true, the 2021 Chrysler Pacifica has brought back all-wheel drive as an option after it disappeared from Chrysler minivans in 2004. Not only that, buyers don't have to choose between having more traction or more cargo flexibility, as both features can coexist on one van. And to herald the changes, Chrysler has also updated the styling, features and trim line. Of course the all-wheel drive is the biggest change, and according to Chrysler representatives we talked to, it was something that was planned for since the launch of this generation of Pacifica. When the platform was developed, they wanted to make sure that if demand called for bringing it back (and it did, more on that later), that it wouldn't be difficult to implement, and that the fold-into-the-floor Stow 'N' Go second-row seats would still fit. Some changes were necessary, such as rerouting the exhaust and tweaking the design of the gas tank, which retains the same volume as a front-drive van. The all-wheel-drive system itself is capable of routing power completely to the rear if necessary, and the driveshaft and power takeoff unit can disengage for fuel savings. It's controlled entirely automatically, taking into account the severity of driver steering and throttle inputs, outside temperature, use of windshield wipers and detection of wheel slip. Besides the extra drive wheels, the 2021 Pacifica gets a reworked nose and hatch. The fascia is much more aggressive with its taller, frowning main grille. The headlights have new LED running light designs. Around at the back, the taillights are new full-width units. The interior has more subtle but still noteworthy changes. All Pacificas now have a 10.1-inch infotainment display as standard, and they're the first FCA products to use the Uconnect 5 operating system. The system brings several upgrades including full Amazon Alexa integration, wireless Apple CarPlay and Android Auto, multiple driver profiles, and more, which you can read about here. Pacificas are also available with a new center console that offers more covered storage space, but also gives the front seats a more cosseted feel like in a car or a crossover. They all differ on overall length toward the back and what kind of arm support they provide. Chrysler also offers something called the FamCam, which gives the driver and front passenger the ability to keep an eye on the kids with cameras controlled from the touchscreen.