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Chrysler Accepts Liability Claims on Pre-June 2009 Vehicles

Chrysler Group, the new entity which was born following the bankruptcy process of Chrysler LLC, now known as Oldcarco, announced today it has decided to accept "product liability claims on vehicles manufactured by Chrysler LLC before June 10, 2009, and involved in accidents on or after that date."

"We know a lot more about the viability of our business today than when we purchased Old Carco's assets in its bankruptcy proceedings several months ago," John Bozzella, Chrysler Group vice president said in a release. "While Chrysler Group still faces challenges, we are confident that the future viability of the company will not be threatened if we accept these claims."

The move was necessary as the new Chrysler took over the assets of OldCarco back in April. Included in the sale of assets from one company to the other was the agreement to take over only for cars sold by Chrysler Group.

"We want our customers to feel comfortable and confident buying, driving and enjoying one of our vehicles," Bozzella added. "Chrysler Group vehicles meet or exceed all applicable federal safety standards and have excellent safety records."

By doing so, Chrysler follows the same path taken by the other former bankrupt American manufacturer, GM. In GM's case however, the acceptance of liability came after a group of nine state attorneys general objected GM's reorganization on the grounds that it would deprave customers of protection against product defects under state laws.

"The purchaser will expressly assume all product liability claims arising from accidents or other incidents arising from the operation of GM vehicles subject to the closing," GM said at the time.

 
 
 
 
 

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