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Chrysler recalls 112k family-haulers over airbag controllers

The Basics: Chrysler has issued a recall for an array of minivans and crossovers manufactured in 2007 and 2008. The models affected include the 2009 Dodge Journey, 2008-09 Dodge Grand Caravan, and 2008-09 Chrysler Town and Country. The 2009 Volkswagen Routan, which was manufactured by Chrysler, is also being recalled by FCA. The automaker estimates that 112,001 units in the United States are affected, all told. The Problem: Corrosion in the air bag control unit could prevent the air bags from deploying in the event of a crash, or alternatively deploy prematurely. Chrysler points out that "none of the affected vehicles are equipped with ammonium-nitrate inflators" like those fitted by Takata. Injuries/Deaths: The manufacturer reports seven minor injuries (but no accidents) potentially related to this issue. The fix: Chrysler will replace the air bag control unit, though it has not yet outlined a timeframe for doing so. If you own one: Look for a recall notice in the mail and then schedule service with your local dealership. If you don't receive one, you can contact Chrysler customer service at 1-800-853-1403 and reference recall number S07. Related Video: RECALL Subject : Air Bag Control Unit Power Supply Corrosion Report Receipt Date: JAN 29, 2016 NHTSA Campaign Number: 16V047000 Component(s): AIR BAGS Potential Number of Units Affected: 112,001 Manufacturer: Chrysler (FCA US LLC) SUMMARY: FCA US LLC (Chrysler) is recalling certain model year 2009 Dodge Journey vehicles manufactured December 31, 2007, to August 31, 2008, 2008-2009 Dodge Grand Caravan and Chrysler Town and Country vehicles manufactured June 18, 2007, to August 31, 2008, and 2009 Volkswagen Routan vehicles manufactured August 11, 2008, to August 31, 2008. In the affected vehicles, the air bag control units may corrode and fail. CONSEQUENCE: If the air bag control unit fails, the air bags may not deploy in the event of a crash, increasing the risk of occupant injury. Additionally, the air bags may inadvertently deploy, increasing the risk of a crash. REMEDY: Chrysler will notify owners, and dealers will replace the air bag control unit, free of charge. The manufacturer has not yet provided a notification schedule. Owners may contact Chrysler customer service at 1-800-853-1403. Chrysler's number for this recall is S07. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.

China's Geely says it has no plan to buy Fiat Chrysler — as FCA stock leaps

HONG KONG — Chinese carmaker Geely Automobile denied media speculation on Wednesday that it planned to make a takeover bid for Fiat Chryslerk Automobiles (FCA), the world's seventh-largest automaker. Geely was one of several Chinese carmakers cited in by Automotive News, which said representatives of "a well-known Chinese automaker" had made an offer this month for FCA, which has a market value of almost $20 billion. "We don't have such a plan at the moment," Geely executive director Gui Shengyue told reporters at an earnings briefing, when asked if Geely was interested in Fiat. He said a foreign acquisition would be complicated, but he did not elaborate. "But for other (Chinese) brands, it could be a fast track for their development," Gui added. However, a source close to the matter said FCA and Geely Automobile's parent firm, Zhejiang Geely Holding Group, had held initial talks late last year, without disclosing their nature. The source confirmed Geely was no longer interested in FCA, noting that the parent company had only three months ago announced its first push into Southeast Asia with the purchase of 49.9 percent of struggling Malaysian carmaker Proton, a deal that also included a stake in Lotus. Geel's denial failed to dent FCA's stock. The price of its Milan-based shares has jumped more than 10 percent to a 19-year high since Automotive News first reported on Monday, citing unnamed sources, that FCA had rejected the Chinese offer as too low. FCA stock on the New York Stock Exchange rose sharply on Monday from $11.60 to $12.38 and on Wednesday was trading at $12.84. FCA declined to comment on Wednesday. FCA Chief Executive Sergio Marchionne has repeatedly called for mergers as a way of sharing the costs of making cleaner, more advanced cars, but he has repeatedly failed to find a partner and retreated from his search for in April, saying FCA would stick to its business plan. He has also spoken of spinning the successful Jeep and Ram divisions off from FCA. Europe's largest carmaker, Volkswagen, and General Motors have both said they are not interested in talks with FCA. On Wednesday, Geely Automobile reported a doubling of first-half profit, above expectations, as cars designed with Sweden's Volvo won over domestic consumers. Volvo is a unit of the Zhejiang Geely group, and has recently announced it will share its technology with Geely.

Chrysler Recalls Over 566,000 Trucks, SUVs

Fiat Chrysler is recalling more than 566,000 trucks and SUVs in two recalls for malfunctioning fuel heaters that can cause fires and a software glitch can disable the electronic stability control. The recalls bring the newly merged company's total for the year to 6.4 million vehicles worldwide and 5.1 million in the U.S. as it continues to struggle with reliability problems. It was not immediately clear whether those totals were annual records. On Tuesday, its longtime quality chief abruptly left after Fiat Chrysler performed poorly in Consumer Reports magazine's annual reliability rankings. The largest of two recalls announced Wednesday covers almost 382,000 Ram 2500 and 3500 pickups and Ram 4500 and 5500 chassis cabs from 2010 through 2014. In trucks with 6.7-Liter Cummins diesel engines, corrosion on a fuel heater terminal could cause overheating, fuel leaks and fires. Chrysler is not aware of any fires or injuries. Owners could be warned by an odor of diesel fuel. Customers will be notified by letters starting in December. Dealers will install upgraded terminals and fuel heater housings could be replaced. The second recall covers more than 184,000 Jeep Grand Cherokee and Dodge Durango SUVs from 2014. A debris cover over a circuit board in the steering column control module can disrupt communications and disable the stability control. The problem was discovered when dealers started getting reports from customers that electronic stability control warning lights were coming on. Fiat Chrysler says it knows of no crashes or injuries caused by the problem. Technicians will upgrade software to fix the SUVs, and customers will be notified in December. Fiat Chrysler has issued 33 global recalls and 27 in the U.S. so far this year. Doug Betts, its longtime quality chief, left the company to pursue other options after Consumer Reports' survey-based rankings this year showed four FiatChrysler brands at the bottom of its list. Dodge, Ram, Jeep and Fiat performed worst of 28 brands ranked by the magazine. Company spokesman Eric Mayne said Fiat Chrysler's recalls average fewer than 200,000 vehicles each, below the industry average of 301,000. That means the company is responding quickly to problems, he said, adding that eight of its 27 U.S. recalls were announced before the company received any consumer complaints. Chrysler is not alone with a high number of recalls so far this year.