Chrysler Group may have invented a new negotiating tactic for car companies dealing with recall requests from the government. Just say “no” and see how much the NHTSA will dial back its request to get a recall without going to court.

“Sure, absolutely” other car companies now will dig in their heels, hoping for leverage against the safety agency in recall discussions, says Clarence Ditlow, head of the Center for Auto Safety.

Normally, in dealings with NHTSA, a car company says, “We are cooperating fully.” Chrysler’s very public refusal was a stunning slap in the face.

After refusing for two weeks, Chrysler said Tuesday it will recall 1.56 million 1993-98 Jeep Grand Cherokee and 2002-07 Liberty SUVs, significantly fewer than NHTSA’s original request for a recall of 2.7 million Jeeps, including 1999-2004 Grand Cherokees.

“We could see additional automaker pushback when NHTSA requests a sweeping recall, because it now looks as though NHTSA is willing to negotiate,” says Alec Gutierrez, analyst at Kelley Blue Book.

NHTSA says the Jeeps are too prone to fire deaths after rear-end collisions. Chrysler says data show otherwise. NHTSA on June 3 asked Chrysler for the recall. After the car company balked, NHTSA set a deadline for Chrysler to change its mind, or officially refuse, creating a staredown.

Chrysler blinked, but in return for announcing a voluntary recall, the automaker got less-daunting terms.

You can read more  here.

The post Chrysler’s “Just Say No” Tactics Could Spread appeared first on Gump & Faiella, LLC | Missouri.