Chrysler Flip-Flops on Liability Claims
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
More by Edward Niedermeyer