Chrysler U-Turns on Pre-Bankruptcy Liability

Chrysler Group has changed its mind and will now accept liability for cars manufactured before the company emerged from bankruptcy on June 10, the automaker told Congress in a letter Thursday.

The announcement follows complaints by consumer groups and attorneys that the newly formed Chrysler company was shirking responsibility for accidents caused by defects in its pre-bankruptcy vehicles.

"We want our customers to feel comfortable and confident buying, driving and enjoying one of our vehicles," Chrysler Group Senior Vice President John Bozzella said in a prepared statement. "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."

Prior to Chrysler’s announcement Thursday, federal and even California lawmakers had considered drafting legislation to restore tort rights to old Chrysler vehicle owners.

“We are heartened that Chrysler understands the need to accept responsibility for defective products,” Christine Spagnoli, president of the Consumer Attorneys of California, said in a press release. “We look forward to resolving legitimate cases in a way that provides justice for victims and their families."

Claims filed against Chrysler before the automaker’s bankruptcy will still have to compete with other creditors’ demands.

— Cheryl Miller
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Comments

[EquiisSavant]

This is a very good thing -- I have over $100,000 in medical bills for injuries I suffered when our 2000 Chrysler Cirrus was rear-ended and my seat restrained broke on impact. I also have autism. My medical care got cut off because my medical bills were not getting paid. Chrysler's Tampa attorney told me I could just be injured and suffer because Chryler was cutting off paying my medical bills in bankruptcy. Also, our car needs some major warranty repairs -- Chrysler attorney refused to eve do that -- left me driving in a broken car. Congress SHOULD legislate. And what about the huge class of people with autism whose claims were cut off and not even represented in the Chrysler bankruptcy caused by Chrysler participation in environmental harms in Michigan -- everyone knows these days such environmental toxins are a cause of autism. Thank God for some justice !!! During Cash for Clunkers, I looked at every kind of car purchase EXCEPT Chrysler !!!