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Jeep Rejects Fuel Tank Fire Fears In SUVs

Carmaker Chrysler has rejected a US safety agency's request to recall up to 2.7 million Jeeps to fix a risk of fires that have left dozens dead.

Chrysler (Xetra: 710000 - news) , which is owned by Italy's Fiat (Milan: F.MI - news) , said it had received a letter from the National Highway Traffic Safety Administration (NHTSA) requesting the recall.

The NHTSA request relates to Jeep Grand Cherokee models from 1993-2004 and the Jeep Liberty model from 2002-2007.

But Chrysler said that it "does not agree with NHTSA's conclusions and does not intend to recall the vehicles cited in the investigation".

It added: "The subject vehicles are safe and are not defective."

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In its letter to Chrysler dated June 3, the NHTSA said an investigation begun a year ago came to a "tentative" conclusion that the fuel tank's placement behind the rear axle in the SUVs raises safety risks.

"This investigation revealed numerous fire-related deaths and injuries, fires that did not result in deaths and fuel leaks in rear impacts," the agency said.

The NHTSA said fatal rear-impact fires caused the death of 51 people - some 44 in the Cherokee (NasdaqGS: CHKE - news) and seven in the Liberty.

A spokesman for Chrysler UK told Sky News the recall request does not apply to Britain and added: "There is no defect so there will be no recall."

Chrysler US released a three-page white paper stating its position and said: "NHTSA seems to be holding Chrysler Group to a new standard for fuel tank integrity that does not exist now and did not exist when the Jeep vehicles were manufactured."

It added that the agency's conclusions were "based on an incomplete analysis of the underlying data."

"All of us remain committed to continue working with NHTSA to provide information confirming the safety of these vehicles," Sergio Marchionne, chairman and chief executive of Chrysler, said in the statement.

A Chrysler spokesman told AFP "about 21" deaths occurred in rear impacts "where fire was the most harmful event."

"Other numbers may include other-type accidents not related to this investigation," he said.

Shares in parent firm Fiat fell in early Wednesday on the back of the dispute but recovered ground in afternoon trading.

Meanwhile, Toyota has recalled nearly 5,000 UK Prius hybrid cars as a result of a brake fault.

It is the latest in a long list of defect recalls to hit Toyota, which once boasted of a legendary name in build quality.

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