Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, February 24, 1994 TAG: 9402240467
SECTION: BUSINESS PAGE: C-9 EDITION: METRO
SOURCE: The Washington Post
DATELINE: LENGTH: Medium
That is why Chrysler decided last week to recall 110,000 of the 1994 mid- and full-size cars, the fifth time in four weeks the company has called back new vehicles to repair defects.
The problem was a group of transmission wires in Chrysler's Concorde, Intrepid, Vision and New Yorker models made from late July through early December. The wires are too close to a steering component that could rub away their insulation, leading to an electrical short that would cause the cars to stall.
At most, according to Chrysler and federal safety officials, only a few cars actually have developed problems, and there have been no accidents, injuries or deaths related to the defect. It was the kind of problem that an automaker might have overlooked or swept under the rug in the past, according to several industry analysts.
But auto companies don't have that luxury now, the analysts said.
"We aren't pleased to have to call any of these cars back," said Glenn Gardner, general manager of Chrysler's large-car platform team. "We kept asking ourselves how we could've missed something like this. There were tears when our people discovered the problem, but there it was. We had to do something about it."
Chrysler's decision "is just another signpost of change in a market run by consumers," said J. Ferron, a senior partner at J.D. Power and Associates, a consumer marketing and research firm in Agoura Hills, Calif.
But some automakers are reading that sign better than others, said Noland Harris, president and publisher of Auto Service Monitor, an Ohio-based newsletter that keeps close tabs on auto safety recalls. Companies such as Toyota Motor Corp. and Saturn Corp., a small-car subsidiary of General Motors Corp., increasingly see recalls "as an opportunity to build brand loyalty among customers," Harris said.
Thus Toyota acted swiftly in 1989 in recalling nearly 9,000 of its luxury LS 400 cars, some of which were equipped with rear lights that could overheat and melt their plastic lens cases.
And it's why Saturn called back nearly 353,000 of its 1990-1993 cars last year to correct a generator wiring defect that could lead to engine failure, Harris said.
"Saturn is really setting the example," going so far as to offer free loaner cars to its customers to avoid inconveniencing them during recall repairs, he said. But "not many automakers believe they have an incentive" to follow Saturn's lead, he said.
"They say that both their dealers and the media see recalls as a negative, and they would prefer to have as little as possible to do with them," Harris said of the reluctant auto executives.
Automakers last year recalled more than 11 million vehicles to remedy defects, the highest number since 1977, when 13 million vehicles were recalled, Harris said.
\ Concerned about a recall?\ \ Recall information on any car or truck can be found on the federal government's Auto Safety Hotline 24 hours a day. The number is (800) 424-9393.\ \ Recalled 1994 Chrysler cars that are experiencing problems related to the wiring defect can be taken to a dealership for immediate repair. Chrysler is asking owners of recalled cars whose vehicles are working properly to wait until March to have the work done.\ \ Chrysler owners with questions about the recall can call the company's consumer center, (800) 992-1997 during business hours.
by CNB