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FTC considering warning stickers for used Chrysler vehicles

07/08/2009, 1:53 PM

By Drew Johnson

If several consumer groups have their way, used Chrysler vehicle could soon come with a warning sticker. Under the terms of its Chapter 11 bankruptcy filing, Chrysler shed its liability for any defective vehicles produced before May 30th, potentially putting thousands of consumers at risk.

After fielding several petitions, the Federal Trade Commission is now reviewing a plan that would require every Chrysler vehicle made before May 30th to carry a sticker warning consumers that Chrysler cannot be held liable for product defects, even if the defect results in personal injury. About 30 million used Chrysler vehicles have lost liability protection previously afforded by state laws, according to Automotive News.

“In Chrysler’s bankruptcy, the ability to form a new company free from the product liability burden of the old company was essential to the new company’s survival,” Chrysler spokesman Michael Palese said in an e-mail to Automotive News. “This is not an issue involving an identified potential safety issue with these vehicles, nor do petitioners claim to have uncovered a systemic defect that requires disclosure.”

The petition claims the buyer of a used Chrysler vehicle could be on the hook for “millions of dollars in medical expenses, hundreds of thousands of dollars in lost income and other losses — with no possibility of recompense — even if their injury was clearly Chrysler’s fault”.

The FTC has yet to decide if it will move forward with the case, but any law regarding used Chrysler vehicles would take about a year to officially hit the books.

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07/08, 1:57 PM

posted by:

Lariat Luxury Locomotive Liner No.3

WARNING—This Chrysler vehicle is a POS, and Chrysler cannot be held responsible for you being stupid enough to purchase the damn thing!

07/08, 1:59 PM

posted by:

A4

Oh so THAT’S the loophole in their Lifetime warranty.

07/08, 2:20 PM

posted by:

DenverGuy217

Said perfectly LLLLN3

07/08, 2:25 PM

posted by:

Borat

Will never happen. FTC salary comes from Treasury and it was Treasury that orchestrated that bankruptcy.

07/08, 2:33 PM

posted by:

05Z88Path

hahaha

Funniest thing I’ve read on this site in a while…. rofl

07/08, 2:37 PM

posted by:

Kid Icarus

Anybody looking to buy a used Chrysler vehicle right now is an absolute idiot…even a warning sticker can’t help them.

07/08, 2:57 PM

posted by:

The Stig

Nice one Lariat.

Personally I would just say:

Are you insane?

07/08, 3:05 PM

posted by:

mayer_ray_nagin

Warning: The Surgeon General has determined that U R Fukt.

07/08, 3:15 PM

posted by:

idrinorbarsaku

hahahaaaaaaaaaahhhaaaaaaaaaaaaaaa!!!! chrysler…….WHAT A PIECE OF SH!T!!!!!

07/08, 3:27 PM

posted by:

The Tuga

can chrysler owners come with a “i’m a dumb POS, please avoid me” sticker on their forehead?

07/08, 3:34 PM

posted by:

Payton Byrd

In all seriousness, this should result in a mandatory federal recall with the government paying each owner the retail value of their car on March 30, 2009 or the amount owed on the financing of that car, whichever is higher.

The Treasury made this mess, it should clean it up.

This could be an addendum to cash for clunkers. Trade in your Chrysler and get it paid off or retail value and you get the tax credit, too.

BTW, won’t GM be getting the same “benefit”?

07/08, 3:44 PM

posted by:

beatusmongous

100% agree, Payton. They should basically scrap all Chrysler vehicles made between May 30, 2006 and May 30, 2009. Either that, or they should have little to no value.

This reminds me of those electronics liquidator companies that buy merchandise from overturned trucks and sell the merchandise dirt cheap simply because the merchandise has no warranty due to the truck accident. At $20 a Wii, you can buy three, test them out, and if they work, sell them for $40 each. This could happen with these rogue Chrysler vehicles – sell new ones for a few thousand with no guarantees. I’d buy a new Challenger or Wrangler for $3,000.

07/08, 3:46 PM

posted by:

Lariat Luxury Locomotive Liner No.3

^^ Effing brilliant PB, let’s use more taxpayers funds on more subsidies for ****ty products. Brilliant, just brilliant! Here, let me send the government my monthly bills because I no longer wish to pay them.

07/08, 3:50 PM

posted by:

Madcapp

Wow, does this mean they’re just gonna be allowed to walk away from their lifetime powertrain warranty that was so heavily promoted in the past few years? If so, that’s a steaming pile of bullsh!t.

07/08, 4:07 PM

posted by:

armstealer

I forgot about that lifetime powertrain warranty, but I am split on this issue.

On one hand, its completely F-ing the general consumer (esp those who bought before this was announced), as the value of their vehicles for trade-in or private sale just fell through the floor.

On the other hand, why should a company be responsible for medical costs, etc.. in the first place, all this does is lead to litigious suits.

Caveat Emptor, right?

07/08, 4:22 PM

posted by:

JakeK66

Isn’t it “buyer beware” the slogan everyone should be living by anyway? I don’t think it really matters – you have car insurance to cover these kind of happenings, if you don’t, well, that’s your own fault. Trade in your Chrylser if you don’t like it, otherwise don’t cry about it.

07/08, 4:27 PM

posted by:

leftwingagenda

the article didn’t say warranties were affected, that’s just come up in comments…in fact, chrysler has stated that warranties will continue to be honored (http://www.bloomberg.com/apps/news?sid=atmraW8Ux4kE&pid=20601070)…what is discussed specifically is “liability”, as in who is legally liable to pay medical expenses if you’re injured using this product and it’s the manufacturers fault…

those are very different concepts…perhaps this point should be raised in the article itself, since it is causing quite a bit of confusion..i doubt this will seriously affect vehicle value…

but to armstealer, a company is responsible for medical costs if their product injures you and it is determined to be their fault for the injury…imagine you’re typing away on a laptop, and the battery explodes and your nuts are destroyed, is that your fault for using the laptop on your lap? or is it the company’s fault for using a battery they knew could explode? you would probably argue that the company should fork over some cash for your medical expenses to get your nuts reattached (especially since medical costs are so high your insurance would get jacked, or it wouldn’t be covered at all and you would have to go personally bankrupt to pay the medical costs)…that’s basic liability law…most products are not sold “as is” like that…caveat emptor is true, but not legally speaking ;P

07/08, 4:28 PM

posted by:

leftwingagenda

meh, the link is screwed up a bit there, because i never punctuate properly, but y’all can delete off what you need to see the link properly…

07/08, 4:36 PM

posted by:

ricky_b

In light of Fiat’s recent purchase of Chrysler… CAVEAT EMPTOR (Let the buyer beware).

07/08, 4:47 PM

posted by:

Payton Byrd

@LLLLLLLLLLENTHREE

It was the Treasury that forced Chrysler into bankruptcy. It was the treasury that has forced the American people to be left without proper recourse against Chrysler. It should be the Treasury’s responsibility to fix this problem. I’m not saying new taxes, I’m saying the Treasury should fork this up out of their operating budget and if that means canning some bureaucrats in the process then so be it.

07/08, 4:48 PM

posted by:

Payton Byrd

Can you imagine what it’s going to cost to ensure one of these things? The liability coverage is going to go through the roof. You may not even be able to get insurance on these cars.

07/08, 5:14 PM

posted by:

Lariat Luxury Locomotive Liner No.3

^^^Wrong again PB. It was politics that allowed the government to intervene with two now utterly useless corporations: GM and Chrysler. Politics with a myopic focus on one industry at the expense of other industries, and the opportunity cost of newer industries. GM will fail, Chrysler is already becoming a distant memory.

07/08, 5:22 PM

posted by:

artmark

The Powertrain Warranty is just fine. If it breaks while you are in your driveway, and you can’t drive anywhere you are covered 100%. No Problem Mon.

If your Powertrain breaks while going 55mph on the freeway, and you slam into the wall because it caused you to loose control, then you are OUT OF LUCK!!! The most you can hope for is that it happens near a Traffic Camera so you get your 15 Seconds of Fame on the evening News.

07/08, 5:27 PM

posted by:

skyaficionado

Sweet, should be able to get a Dodgy for pocket change if they’ve got these stickers on them. If the stickers aren’t in incomprehensible lawyer-language, not even a moron would buy one at anywhere near retail.

07/08, 6:58 PM

posted by:

shaver

Everyone slow down and just recognize this is just lawyers making themselves seem useful. Everything that is wrong with this country has in some or everyway a result of lawsuits or the threat of.

07/08, 11:36 PM

posted by:

johnnycanuck

What does FTC stand for? F*ck Those Chryslers? This is nonsense.

07/09, 3:16 AM

posted by:

CarsNut

@armstealer. A company Can be held responsible for your medical costs. Let just say you are driving a Dodge Neon and one beautiful day, you come to the Stop sign and you hit the brakes, but your beloved Neon just keep going and as a result you slam into the utilitity pole across the street. The impact break your neck and your leg and you are paralysed from the neck down. The cause later is determined to be a defective brake system. Before, you can sue Chrysler for your medical costs, your lost of income etc, but now, you are on your own. Hope this answers your question.

07/09, 10:42 AM

posted by:

beatusmongous

^ True, but you have to prove it was a brake failure that caused the accident, and not your fiddling with the navigation system on New Jersey.

07/09, 12:53 PM

posted by:

RaineMan

I’ve never understood warranties and the like anyways.

How is it that a bank will allow me to finance a car for up to 72 months if the warranty lasts less than that? What do the banks get when the engine on the car blows up 60 months in and the driver just decides to hand over the keys?

07/09, 4:23 PM

posted by:

status

they simply replace the engine and sell it again. in fact this is a great deal for the bank/buy here pay here dealers

07/09, 11:13 PM

posted by:

sprockkets

“I’ve never understood warranties and the like anyways.

How is it that a bank will allow me to finance a car for up to 72 months if the warranty lasts less than that? What do the banks get when the engine on the car blows up 60 months in and the driver just decides to hand over the keys?”

A repo on your credit report. which gives you the inability to finance any new car, and you are liable for any money lost when your bank tries to sell the car.

07/11, 4:43 PM

posted by:

jackjimturkey

I knew when I saw that headline … LLLL3 you did not disappoint.

 
 
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