Reversing a previous decision, Chrysler says it will accept liability claims on vehicles produced on or before June 10, 2009. Following its Chapter 11 bankruptcy, Chrysler decided not to honor any liability claims on vehicles produced before that date – as they were technically made by Old Carco, aka the old Chrysler – but the Michigan automaker changed its stance after a public backlash.
The reversal will give used car buyers better peace of mind and will ensure that those injured by a Chrysler product will receive the compensation they are entitled to.
“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,” said John Bozzella, Senior Vice President, External Affairs & Public Policy, Chrysler Group LLC. “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.”
General Motors – which also filed for bankruptcy this year – never suspended its vehicle liability claims.
