Chrysler recalls 2.7m Jeeps over fuel tank fears

<p>Chrysler had initially refused to recall the vehicles.</p>

Chrysler has confirmed it is to recall around 2.7 million Jeeps over fears of a higher risk of fuel tank fires with the vehicles.

The company had initially refused to issue a recall notice, but now says it has resolved its differences with the National Highway Traffic Safety Administration.

According to a report by BBC News, Jeep Grand Cherokees from 1993-2004 are affected, as well as Jeep Libertys from 2002-07.

The company said: "Chrysler Group's analysis of the data confirms that these vehicles are not defective and are among the safest in the peer group.

However, it admitted that the matter has raised concerns for its customers and as a result it wants to launch an investigation into the state of the fuel tanks in the affected Jeep models.

Chrysler owner Daimler has seen its share price drop today (June 19th) on the back of the news that the firm is recalling some 2.7 million cars.

Its stocks were down to 46.74 at 08:33 BST, down about one per cent for the day.

Learn about the Asian markets and CFD trading at City Index

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.