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Chrysler Responds to Ralph Hoar and Associates

10 July 1998

Chrysler Statement in Response to Ralph Hoar and Associates Announcement in Europe

    AUBURN HILLS, Mich., July 10 -- Chrysler Corporation,
contrary to a press release issued today in Europe by American self-styled
activist Ralph Hoar, made available to its European customers replacement rear
latches for Chrysler minivans it sold there prior to 1995.
    Mr. Hoar claims that Chrysler "has not offered to replace" latches on
overseas minivans.
    Nothing could be further from the truth.
    "Once again, Mr. Hoar is spreading false claims about American
manufacturers," said Steven J. Harris, Chrysler Vice President --
Communications.  "The truth is, Chrysler did supply parts, did notify
distributors, and even notified customers directly in the two countries with
the most minivan sales -- Germany and France.  And we followed the same
formula around the world."
    With many product upgrades, recalls and service actions, even those
initiated in the United States, Chrysler provides replacement parts to its
owners overseas, usually through the distributors who sell and service those
products in their respective countries.
    Although not required to do so in Europe, Chrysler did offer new latches
to European customers through a voluntary service action, like the one it
conducted in the United States.  Thousands of latches have been replaced in
Europe.
    This particular customer service action was not a U.S. recall, as Mr. Hoar
suggests.
    The National Highway Traffic Safety Administration (NHTSA), working in
cooperation with Chrysler, spent 18 months investigating the strength of
Chrysler liftgate latches in the mid-1990s.  NHTSA never reached the point in
its investigation of making a formal ruling -- and never ordered a recall.
    Following that investigation, Chrysler took the unprecedented step of
ordering a voluntary service action to install a stronger latch, because of
customer concerns generated by extensive media coverage of the pending
investigation.
    In fact, Chrysler's $100 million (U.S.) voluntary service action in the
U.S. went far beyond the requirements of a formal NHTSA safety recall, and its
completion rate -- particularly on newer (1991-1995) minivans -- was greater
than normally seen during a formal recall.
    In Europe, although not facing the same concerns from customers or the EU
government agencies, Chrysler offered the strengthened latch, as well.
    "We would expect and anticipate an apology and/or a correction from Mr.
Hoar immediately," concluded Mr. Harris.