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Chrysler Is Accelerating Transmission Repairs : Autos: The car maker is concerned that a Consumer Reports article critical of its Ultradrive could hurt it severely.

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TIMES STAFF WRITER

Chrysler Corp. said Monday that it has stepped up a program to correct problems with its Ultra-drive transmission after an article in the February issue of Consumer Reports magazine that advised readers against buying Chrysler vehicles equipped with the feature.

Last week, in a satellite broadcast to Chrysler dealers, Chairman Lee A. Iacocca said the customer concerns triggered by the article could cause severe damage to the company, particularly its highly profitable line of minivans.

“We call them the crown jewels of this company and of your dealerships,” Iacocca said of the minivans. “But actually, they are our bread and butter. Without minivans, we don’t eat. It’s that simple.”

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In an article titled “It’s a Lemon--Steer Clear,” Consumer Reports said surveys of its subscribers found that 14% of the 1989 Chryslers and 7% of the 1990 models equipped with Ultradrives experienced transmission problems. The rates were even higher for the company’s highly popular minivan lines: 20% for the 1989 Dodge Grand Caravan and 19% for the 1989 Plymouth Grand Voyager.

“Our advice: Do not buy any Chrysler product equipped with the four-speed Ultradrive transmission,” the influential consumer magazine said. “The risk of transmission failure has been unacceptably high.”

In response, Chrysler said the Consumer Reports surveys are based on older models and do not reflect the changes the company has made in the electronically controlled transmissions. The company has replaced 19,000 of the transmissions, which have locked up in second gear and were subject to problems related to cold weather.

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Ted Cunningham, executive vice president of sales and marketing, said the Consumer Reports article has not had an effect on sales of its vehicles, 57% of which are equipped with Ultradrive.

However, as a result of the article, Cunningham said the nation’s third-largest auto maker will reimburse dealers to perform free diagnostic tests on Ultradrive vehicles. Chrysler will also telephone the 1.4 million Ultradrive buyers as part of a customer service program.

“Our concern right now is that this is old news and now we got to put it to bed again,” Cunningham said.

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