Chrysler Flip-Flops on Liability Claims

by Edward Niedermeyer

Published: August 27th, 2009

ChryCo finally acknowledges that denying outstanding liability claims while taking taxpayer money was kind of a dick move.

In a letter sent today to Members of Congress, Chrysler Group LLC

announced that the company will accept product liability claims on vehicles

manufactured by Chrysler LLC (now OldCarco LLC) before June 10, 2009, and

involved in accidents on or after that date. On June 10, 2009, Chrysler

Group purchased substantially all of the assets of Old Carco.

“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.”

OldCarco filed for bankruptcy protection on April 30, 2009. Following many

complex and lengthy hearings, the bankruptcy court approved the sale of

substantially all of OldCarco’s assets to a newly formed company, Chrysler

Group LLC. As part of the bankruptcy court-approved purchase, Chrysler Group

had agreed to assume liability only for cars sold by Chrysler Group. As a

result of today’s announcement, Chrysler Group’s approach is consistent with

that taken by General Motors as part of its bankruptcy process.

“We want our customers to feel comfortable and confident buying, driving and

enjoying one of our vehicles,” Bozzella said. “Chrysler Group vehicles meet

or exceed all applicable federal safety standards and have excellent safety

records.”

Edward Niedermeyer

4 of 6 comments

CyCarConsulting on Aug 28, 2009

The 1928 Chrysler Imperial 80 Limo pictured, is much more interesting than who's screwing who. I look at those art pieces, and can't believe where we are in the state of affairs, with the automobile today.

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Toasty on Aug 28, 2009
CyCarConsulting, you nailed it. As both engineering art and as a commodity, U.S. brands are largely failures today. I know that the Big 3 can turn it all around, but I have no confidence that they have enough time and resources to make it happen. Even though changing their stance on claims is a small move, at least it's a step in the right direction.

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Texlovera on Aug 28, 2009

@CyCarConsulting: The only Chrysler I've seen lately that I'd "feel comfortable and confident buying, driving and enjoying" is that 1928 Imperial!

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CyCarConsulting on Aug 28, 2009

Dittos, texlovera, the model designation 80 relates to the car easily cruising at 80 mph, all day long. Truly a sweet ride.

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