In Brief : Chrysler Finds Transmission Defect

Chrysler Corp., which is trying to revive its image as maker of the best-engineered U.S. autos, said today it has discovered a design defect in a highly touted new electronic four-speed transmission that has been installed on 150,000 1989 models.

The auto maker said it does not plan a recall because the defect has occurred on only 3%, or 5,000 of the vehicles.

The problem involves the new A-604 transaxle, which is standard or optional equipment in combination with a six-cylinder engine on Dodge Caravan and Plymouth Voyager mini-vans and on Chrysler New Yorker and Dodge Dynasty full-sized sedans.

The transaxle was developed as part of a program stressing a return to excellence for Chrysler engineering. Chrysler plans to produce 400,000 of the transaxles this year.

A Chrysler spokeswoman said the design defect causes fluid to leak inside the transmission, leading to clutch failure. The problem is recognizable when the car locks in second gear and refuses to go faster, spokeswoman Karen Stewart said.

The car can be safely operated if this happens, but only at reduced speeds, she said.