(Bloomberg) — Chrysler Group LLC is recalling 867,795 Jeep Grand Cherokee and Dodge Durango sport-utility vehicles to install a shield to protect brake boosters from water corrosion.
Vehicles from model years 2011 through 2014 will be inspected and the boosters replaced where necessary, the Auburn Hills, Michigan-based carmaker said in a statement. The Fiat SpA division started an investigation following customer complaints about excessive brake-pedal firmness. Fiat stock fell for the first time in seven trading days.
New models, increasingly complex technology and heightened regulatory scrutiny have led to more auto recalls, consulting company Stout Risius Ross Inc. said in a study last month. Chrysler's announcement follows U.S. congressional testimony yesterday by General Motors Co. Chief Executive Officer Mary Barra about why her company took more than a decade to fix faulty ignition switches implicated in 13 crash-related deaths.
“Clearly the market is very sensitive to recalls after the GM issue,” Vincenzo Longo, a strategist at IG Group in Milan, said by phone. Chrysler's announcement “gives investors a reason to sell Fiat stock after it rose yesterday to the highest since 2007.”
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