Crazy Ray’s Give Away!

T-Minus three and counting before the rollercoaster ride that is the tenure of Department of Transportation Secretary Ray LaHood careens to a stop. But, not before he did one last handstand for the crowd.

With the National Highway Traffic Safety Administration and Chrysler on a collision course over a recall to remedy the aft-of-the axle fuel tank design of the early model Jeep Grand Cherokees and some Jeep Liberty SUVs that is prone to explode into flames in a rear impact, LaHood, donned his super-hero tights and flew to what he imagined to be the rescue.

Now, most backroom deals attempt to stay on the QT. But, Ray LaHood, never one to miss an opportunity to pat himself on the back, could not be silent. He gave David Shepardson of The Detroit News the scoop: Six days before Chrysler would have to formally respond to NHTSA’s request that Chrysler recall 2.7 million 1994-2004 Jeep Grand Cherokees and 2002-2007 Jeep Liberty SUVs, Ray got Chrysler Group CEO Sergio Marchionne on the blower and said something like, “Look here, old man, no one takes safety more seriously than Ray LaHood and we’ve got to figure this Jeep thing out!”

Chrysler had heretofore demonstrated a very public unwillingness to recall those Jeep models, based on a shaky statistical analysis that threw every model on the wall it could think of to make the pre-2005 Jeep Grand Cherokee (before they moved the tank) look not-so-horrible. On June 9, LaHood drove from his home in Peoria, Ill; Marchionne flew in from Italy and David Strickland, ever playing Jimmy Olsen to LaHood’s Superman, flew from D.C. to Chicago. The trio converged at the Federal Aviation Administration building at O’Hare Airport for a “tough, hour-long ‘frank’ meeting,” according to Shepardson’s story.

As reported by Shepardson, Marchionne dispatched some engineers the next day to D.C. to come up with “the outlines” of a remedy with NHTSA. In public, the confrontation appeared to build, encouraged by business and auto journalists who seemed excited by the prospect of Chrysler sticking its finger in the government’s eye. Just as the showdown drew nigh, the automaker announced that it would implement a “voluntary campaign” to add trailer hitches to some older models.

Ray could not contain his enthusiasm for the remedy:

Will Chrysler stand behind the Jeep?

Well, today’s the day Chrysler must formally tell NHTSA to pound sand or agree to recall the 1993-2004 Jeep Grand Cherokee and the 2002-2007 Jeep Liberty to mitigate a behind-the-rear-axle fuel tank design that makes it vulnerable to fuel-fed fires in rear impacts.

We will not speculate. We have, however, hired Randy Whitfield of Quality Control Systems Corporation to see if he could replicate Chrysler’s first – and less favorable, albeit more accurate – method of comparison of fire-related, fatal rear-impact crashes.  

Chrysler and the Jeep - Outlier?

So Chrysler has thrown down the gauntlet, and its claque has dutifully delivered its standing O. Atta boy, Chrysler, tell those regulators to stick it!

As usual, those opining about Chrysler’s public resistance to recalling the 1993 - 2004 Jeep Grand Cherokees and 2002 -2007 Libertys for defective fuel tanks haven’t a bloody clue. And so, as usual, The Safety Record Blog will put Chrysler’s shot across the bow into its proper context.

To recap: In November 2009, the Center for Auto Safety petitioned the National Highway Traffic Safety Administration to open an investigation into fuel-fed fires plaguing the early model Jeep Grand Cherokees, alleging that the plastic fuel tank's placement behind the rear axle and below the rear bumper, and the lack of adequate shielding made it more vulnerable to rupture or leakage from rear-impacts and in rollovers. According to Fatality Analysis Reporting System (FARS) data, this design resulted in 172 fatal fire crashes with 254 fatalities, CAS said. The agency granted the CAS petition in August 2010, and opened a Preliminary Evaluation. In June 2012, ODI bumped up the investigation to an Engineering Analysis. Two weeks ago, NHTSA announced that it had requested that Chrysler recall the 1993-2004 Jeep Grand Cherokee and 2002 -2007 Liberty and was ready to go to an Initial Decision hearing if Chrysler refused.

So far, Chrysler has refused. Its preliminary defense was laid out in a “White Paper” (see NHTSA Drops Hammer on Chrysler Jeeps) Yes, it was written on virtual white paper. But we expected something a little more detailed than a three-page press release and a chart with writing so tiny, one needs to blow it up 500 percent to read it. Its basic argument is, and has always been, this: The Jeep Grand Cherokee and the Jeep Liberty met the Federal Motor Vehicle Safety Standard (FMVSS) 301 fuel tank integrity at the time, and the Jeep Grand Cherokee and Liberty, statistically are not outliers for rear-impact fuel-fed fires. (Chrysler has until next Tuesday to file its official response.) 

Sounds reasonable, no? Let’s unpack it.

“I don’t where I got the nerve, but it sure felt good.”

So says Christina Catalano, after her brief confrontation with Chrysler CEO Sergio Marcchione at a dinner yesterday night sponsored by Automotive News World Congress, as part of the North America International Auto Show in Detroit.

Catalano is the daughter of Linda Catalano who died on August 3, 2008.  The 55-year-old mother and grandmother had completed a garage sale and had left her home several blocks away to collect the remaining sale signs along the road.  She evidently stopped the vehicle along the roadway to pick up a sign.  She placed her vehicle into what she must have believed to be Park and opened the door and stepped out of the Chrysler Mini-Van to pick up her signs, with the engine running and the driver’s side door open.  The vehicle then “self-shifted” into reverse, knocking Catalano to the ground and dragging her underneath the left front tire, where it pinned her.

Chrysler, GM Bankruptcies Concluded, Defect Victims Cheated

WASHINGTON, D.C. – The Obama administration’s drive-by bankruptcies have left the victims of defect-related crashes to eat their dust, but consumer advocates are turning to other strategies to force Chrysler and General Motors to do the right thing.

Consumers for Auto Reliability and Safety, along with Consumer Action, Center for Auto Safety, Center for Justice & Democracy, and National Consumers League, have petitioned the Federal Trade Commission to require labels informing buyers of a used Chrysler’s unique liabilities. The label they’ve suggested goes like this:

“WARNING    This vehicle was produced prior to the date when the Chrysler bankruptcy was approved. If you buy this vehicle and are injured or killed, even if your injuries were caused by the manufacturer, you or your survivors will not be able to recover your losses by taking action against the manufacturer. If your passengers are injured or killed, even if their injuries were caused by the manufacturer, they and their survivors will not be able to recover their losses by taking action against the manufacturer.”

Kicked Off the Rope Line?

The American Association for Justice and consumer advocates are planning a full court press at today's hearing before the full House Judiciary Committee on the Chrysler bankruptcy proposal. The groups are fighting to change one of the more egregious provisions. Under the terms that the federal government is advocating, the new and improved post-bankruptcy Chrysler would leave all those pesky plaintiffs and vehicle owners seeking compensation for the manufacturers' defective products in the rear-view mirror. The company would honor warranties and be responsible for recalls, but anyone injured before the bankruptcy would be yanked out of the line of debtors.