Jun 18, 2013 10:19 AM EDT
Chrysler Expected to Formally Refuse Jeep Recall This Week, What it Means For The Company (VIDEO)

Chrysler is expected to formally file papers explaining its refusal to recall approximately 2.7 million Jeep SUVs that are a risk of catching fire during rear-end collisions.

The National Highway Traffic Safety Administration said earlier this month that 51 people have died after fires broke out while driving Jeep Grand Cherokee and Liberty models with gas tanks mounted behind the rear axles according to the Associated Press.

Chrysler doesn't believe the gas tanks are the issue however, and have stuck with the notion that the SUVs are just as safe as any other vehicle currently on the road. The automotive company said the Jeep models met "all federal safety standards when they were built" over two decades ago.

It's not often that a car company has a public dispute with the NHTSA, the agency responsible for monitoring auto safety. The last time it occurred was in 2011 when Ford was told to recall 1.2 million pickup trucks for defective air bags.

Ford eventually agreed to the recall after the NHTSA threatened to have a public hearing to discuss the issue according to the Associated Press.

The NHTSA may be forced to threaten a similar hearing if Chrysler continues to refuse to recall the SUVs. The NHTSA began investigating the older models over three years ago and determined earlier this month that the vehicles had to be recalled.

NHTSA sent a letter to Chrysler earlier this month asking it to voluntarily recall Grand Cherokees from 1993 through 2004 and Libertys from 2002 through 2007 according to the NHTSA website. The plastic gas tanks can rupture when hit from behind, spilling fuel and causing deadly fires according to the NHTSA.

Chrysler moved gas tanks on the Grand Cherokee in front of the rear axle in 2005, and did the same thing with the Liberty in 2007.

 The company responded to the request days later saying it "does not intend to recall the vehicles" and now it must file its formal response by the end of today, June 18.

Chrysler said the problem could be solved for approximately $100 per vehicle by bolting a metal gas tank shield to the frame, "adding a fuel tank check valve to stop leaks and making the tank's hose longer so it won't be pulled from the tank in a crash" Chrysler said according to the Associated Press.

That solution would cost Chrysler $270 million, about one-sixth of the company's profit last year.

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