Chrysler changes course on product liability claims

The Detroit News
Thursday, August 27, 2009


The Chrysler Group LLC reversed course and agreed to accept product liability claims on vehicles built before the company's good assets exited bankruptcy on June 10.

Chrysler had left behind all of its product liability claims in bankruptcy, which drew outrage in Congress, in part because consumers could be involved in an accident with the 31 million Chrysler vehicles built before June that are on the nation's roads and have little recourse.

Chrysler agreed to honor warranty claims, lemon law claims and safety recalls regarding the vehicles.

The action was met with approval from victims' advocacy groups.

"Chrysler has responded to pressure from injured victims and consumer groups, and we commend them for taking this important step to protect public safety," said Joanne Doroshow, executive director of the Center for Justice & Democracy. "All along we've believed that Chrysler's taking full responsibility for its defective cars was both the right thing to do and good business for the company."

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