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Jeep recalling 75,000 Cherokees over air-conditioning lines

Fiat Chrysler Automobiles has issued a recall for an estimated 75,364 examples of the Jeep Cherokee in the United States. The problem stems from an air-conditioning line, which may have been installed to close to the exhaust manifold. "Under certain operating conditions," says FCA in the statement below, "this may pose a fire risk." Thus far, however, the company says it is "unaware of any related injuries or accidents." The owners of those 75k Jeeps (as well as another 18,000+ in other markets) can expect to hear from their local dealers to have the problem rectified. However the manufacturer also advises owners to watch out for indicators like air-conditioning loss or a dashboard warning light and contact their dealers if necessary. Related Video: Statement: Air-conditioning System October 27, 2015 , Auburn Hills, Mich. - FCA US LLC is voluntarily recalling an estimated 75,364 U.S.-market SUVs to inspect and replace, as required, their air-conditioning lines, as required. FCA US launched an investigation after the National Highway Traffic Safety Administration received two customer complaints involving smoke and fire. The Company discovered air-conditioning lines on some vehicles may have been installed in close proximity to their engines' exhaust manifolds; under certain operating conditions, this may pose a fire risk. FCA US is unaware of any related injuries or accidents. The recall is limited to certain 2015 Jeep Cherokees. Additional vehicles are affected in other markets. They include an estimated 7,571 in Canada; 4,018 in Mexico; and 6,942 outside the outside the NAFTA region. Affected customers will be advised when they may schedule service, which FCA US will provide free of charge. . Customers who observe air-conditioning loss or any other concern, such as a dashboard warning light, should contact their dealers. Customers with additional questions may call the FCA US Customer Information Center at 1-800-853-1403.

Jeep and Ram could be spun off from FCA, says Marchionne

Jeep is surely the biggest single feather left in the cap of the Fiat Chrysler Automobiles portfolio. Under Sergio Marchionne's leadership, Jeep went from fewer than 500,000 annual sales in 2008 to 1.4 million in 2016, and is on track for 2 million by 2018. Add in the brand's legacy, status as one of the most recognizable nameplates in the world, and rabid fan base, and Jeep has extraordinary monetary value to its parent company. Investors and analysts have certainly noticed Jeep's inherent value. According to The Detroit Free Press, Morgan Stanley's Adam Jonas asked FCA chief Sergio Marchionne if he would ever consider spinning Jeep and Ram, FCA's dedicated truck brand, into a separate corporate entity, and he responded with a simple "Yes." Jonas estimated Jeep's worth in January of this year at $22 billion. Ram was valued at $11.2 billion. Marchionne has a history of spinning off brands while keeping them part of FCA's corporate umbrella. The most noteworthy example of this value maximization was with Ferrari, which now trades on the New York Stock Exchange and rakes in $3.4 billion in annual revenue and close to $435 million in net income, reports the Free Press. Marchionne still serves as chairman and CEO of Ferrari, and Fiat heir John Elkann owns 22 percent of the Italian marque's shares. Even if the offloading of Jeep and Ram into a separate entity would amount to little more than a profit-driven ownership change on paper, it would be huge news to the brands' loyal fanbases. In any case, such a move would likely take years to actually happen and probably wouldn't mean much at all to the products that Jeep and Ram produce. In other words, Jeep fans can keep the pitchforks in the shed ... for now. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Jeep Cherokee faces on-sale delay

A report in The Wall Street Journal looks at some of the obstacles to the 2014 Jeep Cherokee that go beyond its mootable yet "very contemporary" looks, almost all of them based on Fiat's financial position. Starting with that sheetmetal, in defense of it SRT president Ralph Gilles and Jeep design head Mark Allen said they wanted to "make sure the design still looks modern five years from now."
The WSJ piece doesn't cite longevity as a factor, instead saying that its features originated in a design for an Alfa Romeo, the transformation into a Jeep design meant allowing Chrysler get it to market more quickly and save "hundreds of millions of dollars" in engineering.
The need for Fiat to save money while it weathers the European situation has cut budgets for development, engineering and the pace of retooling the Toledo, Ohio plant to build the Cherokee. In a familiar case of snowballing at work, among the effects will be pushing back the Cherokee's volume sales date and delaying updates to some of Chrysler's other products.