WHILE FRWY. DRIVING AT APPROX. 72 MPH / 2600 RPMS AND WITHOUT WARNING OR INDICATION OF MALFUNCTION, WE HEARD A POP, AND IMMEDIATELY NOTICED SMOKE COMING FROM THE VEHICLE. THE DRIVER MANEUVERED THE VEHICLE TO THE RIGHT SHOULDER. UPON EXITING THE VEHICLE I NOTICED SMOKE AND FLAMES COMING FROM THE UNDERSIDE AND ENGINE COMPARTMENT. MY FAMILY IMMEDIATELY EXITED THE VEHICLE AND I USED A FIRE EXTINGUISHER TO EXTINGUISHED THE FIRE THAT WAS ENGULFING THE ENGINE COMPARTMENT AND UNDERCARRIAGE OF THE JEEP. AFTER EXTINGUISHING THE FIRE, I WAS ABLE TO INSPECT THE VEHICLE. I NOTICED A LARGE HOLE IN THE LOWER ENGINE BLOCK JUST BEHIND THE OIL PAN ON THE PASSENGER SIDE. ADDITIONALLY, THE METAL HEAT SHIELD THAT SITS JUST TO THE SIDE OF THE ENGINE WAS BENT BACKWARD. IT APPEARS THAT THE ENGINE MALFUNCTIONED AND THREW A BEARING OR OTHER ENGINE PART THROUGH THE OUTER MOTOR CASING RELEASING OIL AND CAUSING THE RESULTANT FIRE AND DAMAGE. HOWEVER, I CAN NOT RULE OUT A COMPUTER MALFUNCTION RESULTING IN ENGINE FAILURE VS. PURE MECHANICAL ENGINE FAILURE. IT HAS BEEN OVER TWO WEEKS SINCE THE INCIDENT AND CHRYSLER HAS JUST INFORMED ME THEY WILL NOT COVER THE REPAIRS UNDER THE EXISTING 5 YEAR/50,000 MILE DRIVE TRAIN WARRANTY THAT HAD NOT EXPIRED AND WAS PROVIDED AS PART OF THE ORIGINAL PURCHASE AGREEMENT IN JULY 2011. THEIR RESPONSE WAS "WE HAVE HAD THE OPPORTUNITY TO REVIEW THE INSPECTION REPORT AND MUST INFORM YOU THAT WE ARE NOT LED TO BELIEVE THAT THE INCIDENT WAS DUE TO A MANUFACTU