From April 16, 1996....WALL STREET JOURNAL
by Asra Q. Nomani
WASHINGTON--Chrysler Corp., amid pressure from the federal
auto-safty agency, said it plans to recall the antilock-brake systems on
some of its popular minivans and other vehicles.
Prompted by a federal investigation, Chrysler yesterday said it
would pay to fix the antilock-brake systems on about 275,000 1991-1993
model minivans and another 75,000 cars, including New Yorkers, Imperials
and Dynasties.
The recall came after National Highway Traffic Safety
Administration officials responded angrily to a Chrysler announcement
that it planned a "repair and reimbursement campaign," something that
would fall short of an actual recall.
As part of the recall, Chrysler said it would inspect any of the
campaign's target vehicles, replace malfunctioning antilock-brake system
parts free of charge, reimburse owners for previous repairs and extend
the warranty to 100,000 miles on antilock brake-system parts in the
potential problem vehicles.
Early yesterday afternoon, Chrysler public-relations official
Jason Vines said he planned to issue a press release on "a service
campaign," as a result of inquiries from this newspaper about the pending
recall. But moments after the release was issued, surprised federal
safety-agency officials called reporters, expressing concern that there
were no mentions in the press release of the word "safety" or "defect" in
relation to the antilock brake-system parts.
"One of the concerns we have with the Chrysler position is that
nowhere do we see safety mentioned," said Michael Brownlee, the agency's
associate administrator for safety assurance, shortly after the initial
Chrysler announcement. An hour later, following discussions between the
government and Chrysler, Mr. Vines called back to correct the company's
stance and clarify that the action amounted to "a safety recall."
Government officials made it clear during those discussions late
yesterday that they would continue their investigation if Chrysler failed
to issue a recall notice. It's likely that a recall would satisfy
government investigators.
A recall differs from a so-called service campaign because it
requires Chrysler to submit quarterly reports itemizing its notification
and completion of the recall; it also subjects the company to possible
fines if it doesn't comply with the recall.
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