1.5 Million Plus Cars Affected in Chrysler, GM Recalls

GM recalls are affecting nearly 1.5 million cars, while Chrysler recalls come in at about 145,000. Who is paying for this work and what will it do to the already cash strapped ventures?

Makes and Models Affected by Current GM Recalls

The latest GM recalls affect the 1997 to 2003 Pontiac Grand Prix and Buick Regal, model years 1998 to 1999 Oldsmobile Intrigue and Chevrolet Lumina, and also 1998 to 2003 Monte Carlo and 2000 to 2003 Chevy Impala. At issue is the potential of oil caused engine fires. The NHTSA reports that dealers will replace the spark plug wire retention channel with two spark plug wire retainers that will hopefully prevent any engine fires caused by dripping oil. The total number of vehicles affected is 1,497,516.

Makes and Models Affected by Current Chrysler Recalls

Unlike the Chevy recalls, this current Chrysler recalls only affect 42,469 cars. Issues of this recall are the 2002 to 2003 Jeep Liberty vehicles that may be subject to a separation of front suspension components while driving. According to the NHTSA, an official owner notification campaign has not yet been announced although dealers are aware of the problem and will replace certain components to prevent this occurrence.

2001 to 2004 Jeep Grand Cherokee cars also have problems. 102,354 cars are recalled because of a heating element under the front seat that potentially becomes too hot and may cause a fire. Once again, NHTSA advises that an official owner notification has not yet been sent out.

Implication of Latest Chrysler and GM Recalls

The Chevy Impala recalls - and also noted Buick, Pontiac recalls and Oldsmobile Intrigue, Chevrolet Lumina, Monte Carlo, and Grand Prix recall - as well as the Chrysler recalls come at a precarious time. GM recalls are coming in the wake of discussions focusing on a potential June 1^st bankruptcy for the auto maker. On the other hand, when compared to the probable cost of the Chrysler recalls, the GM recalls are chump change.

It is speculation that Chrysler's relationship with Daimler led to the manufacturing problems; this is considered by some food for thought when discussing the potential shotgun wedding of Chrysler and Fiat. On the flipside is the question who will foot the bill for these costly recalls. As the USA Today reported, GM and Chrysler are under the gun to shape up or ship out, but these recalls are sure to eat up much needed cash reserves.

Is it once again the taxpayer to the rescue?

Sources

http://www-odi.nhtsa.dot.gov/recalls/results.cfm?rcl_id=09V116&searchtype=quicksearch&summary=true&refurl=email; http://www-odi.nhtsa.dot.gov/recalls/results.cfm?rcl_id=09V119&searchtype=quicksearch&summary=true&refurl=email; http://www-odi.nhtsa.dot.gov/recalls/results.cfm?rcl_id=09V117&searchtype=quicksearch&summary=true&refurl=email; http://www.usatoday.com/money/autos/2009-03-30-bailout-wagoner_N.htm