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Chrysler Recalling 700k Vehicles For Ignition Switch Woes

General Motors isn't the only automaker with ignition switch problems. Chrysler is fighting it too and is now announcing a recall of 695,957 examples worldwide of the Chrysler Town & Country and Dodge Grand Caravan minivans from the 2008-2010 model years, plus the 2009-2010 Dodge Journey. According to a statement from Chrysler, the models have a bad wireless ignition node detent ring in the ignition switch, making it possible for drivers to appear to have the key in the "Run" position but for the spring not to fully engage. It can then slip back to the "Accessory" position and shut the car off. If this happens, the vehicle loses power steering, brake boost and the airbags. There is some disparity about the number of vehicles affected under this recall. In its statement, Chrysler claims that it covers 525,206 vehicles in the US, 102,892 in Canada, 25,591 in Mexico and 42,268 elsewhere. However, the recall announcement posted by The National Highway Traffic Safety Administration lists an estimated 438,109 vehicles in the US. Chrysler spokesperson Nick Cappa told Autoblog via email that the reasoning for the different figures "will become clear at a later date." To fix the problem, Chrysler will install a new detent ring in the vehicles. It will begin contacting owners soon, and obviously the repair will be free of charge. This isn't the first time this problem has cropped up in these models. Chrysler issued a recall for 248,437 vehicles in 2011 for certain 2010 model year examples. A few weeks ago, NHTSA also began investigating the 2008-2010 model years of the affected models for ignition switch problems. At this time, it's not clear whether that evaluation and this campaign are linked. Chrysler told Autoblog that it has no reports of injuries related to the problem. Scroll down to read the company's statement and the NHTSA recall report. Statement: Expansion of Wireless Ignition Node (WIN) safety recall July 1, 2014 , Auburn Hills, Mich. - Out of an abundance of caution, Chrysler Group is expanding a previous safety recall to install a more robust WIN module detent ring. A previous recall in 2010 included 196,000 Chrysler Town & Country, Dodge Grand Caravan and Dodge Journey vehicles built August 2, 2009 through June 17, 2010. The expansion includes an additional 695,957 vehicles manufactured January 29, 2007 through August 1, 2009.

Chrysler dealers terminated in bankruptcy still stuck in court

Part of the deal for the federal bailouts of Chrysler and General Motors was that both organizations were required to trim their vast array of dealerships. This move did not sit well with the people that would be losing out on franchises, though, and in Chrysler's case, 148 of the shuttered dealers have fought for money they feel they are entitled to.
These dealers believe that they should be compensated by the federal government, as Chrysler wouldn't have trimmed its sales centers had it not been ordered to by Uncle Sam. Now, thanks to the ruling of three judges on the US Court of Appeals for the Federal Circuit, the dealers will get a chance to argue their point.
According to Automotive News, the dealers argue that the mandatory shuttering of dealers was unconstitutional, because the federal government was taking property without compensation. If the dealers are victorious, not only would the government be out millions of dollars, but a precedent could be set that would allow similarly closed GM dealerships to cash in.

Weekly Recap: Lamborghini to build SUV

Finally, Lamborghini will build a sport utility vehicle. The Italian supercar maker confirmed this week that it will launch a luxury SUV in 2018. It will be built at Lamborghini's soon-to-expand factory in Sant'Agata Bolognese in Italy, and will double the company's current sales volume. Lamborghini did not announce a name for the vehicle or other details, but noted a concept version, the Urus, was displayed at the Beijing motor show in 2012. It will be sold around the world, but it's expected to be a critical offering in the United States, China, and the Middle East. The automaker projects the SUV will sell about 3,000 units per year, and it will be the third product in Lamborghini's portfolio. It currently sells the Huracan and Aventador supercars. "The introduction of a third model line endorses the stable and sustainable growth of the company and signifies for us the beginning of a new era," Lamborghini chief executive Stephan Winkelmann said in a statement. The project is also a boon for Italy, which will get 500 new jobs in the Emilia Romagna region as Lamborghini's factory will nearly double in size. Ian Fletcher, principal analyst for IHS Automotive, said the SUV will position Lamborghini for future growth. "It could well also bring new customers to the brand [who] may find the dramatic styling of Lamborghini products appealing, but find its typical sports cars restrictive," he said. "If it is a success, the SUV could be a catalyst to Lamborghini broadening its portfolio further." OTHER NEWS & NOTES GM invests in Chevy Camaro factory General Motors is investing $175 million to upgrade its factory in Lansing, MI, to build the 2016 Chevy Camaro. The investment will pay for new tooling and equipment. The improvements include three new paint systems and two new robotic framers. GM will add a second shift at the factory to build the Camaro, resulting in 500 jobs. The automaker had dropped the plant to one shift last year amid slow sales for its products, the Cadillac ATS and CTS. GM is spending $5.4 billion over the next three years to upgrade its US facilities. Last week, GM announced plans to spend $439 million to build a new paint shop for the Chevy Corvette. While the Camaro and Corvette plant improvements are intriguing to enthusiasts, GM also confirmed this week that it is investing $1.2 billion in its Fort Wayne (IN) factory that builds trucks.