29.08.2009 CHRYSLER TO ASSUME FUTURE LIABILITY FOR CARS PURCHASED BEFORE BANKRUPTCY

CHRYSLER TOWN & COUNTRY (2010)

In a letter sent to Members of Congress, Chrysler Group has announced that the company has reversed its position will now accept product liability claims on vehicles manufactured before June 10, and involved in accidents on or after that date.

On June 10, the new Chrysler Group was born out of the bankruptcy procedure after it was transferred the main assets of future value of the old Chrysler. The unwanted assets and liabilities remained with the rump of Chrysler (now "Old Car Co") and became the responsibility of the courts to dispose of. Controversial at the time, the liability for future accidents of vehicles purchased before the new Chrysler Group emerged from Chapter 11 remained with Old Car Co despite much pressure.

"We know a lot more about the viability of our business today than when we purchased Old Car Co'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."

Chrysler (now Old Car Co) filed for bankruptcy protection on April 30, 2009. Following many complex and lengthy hearings, the bankruptcy court approved the sale of substantially all of Chrysler'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."

ItaliaspeedTV - Chrysler Customer Satisfaction Teams - Problem Solving Training / Under the Pentastar 29 August 2009
 

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