Well, here’s another one:
Chrysler’s bankruptcy was supposed to be quick and surgical, but the automaker’s Chapter 11 filing is proving to be anything but to the current owners of Chrysler vehicles. The Michigan automaker has already bounced a number of lemon law settlement checks and now comes word that the company will wash its hands of any major vehicle defects through its bankruptcy filing.
When the ‘new’ Chrysler emerges from bankruptcy it will still honor all normal warranty claims, but will be legally clear of any major defects, even if they are recall-related. “You have the “new” Chrysler agreeing to be responsible for all the warranty claims and if a wheel falls off and it’s under warranty then they’ll fix it,” Liability lawyer Larry Coben told ABC News. “But if the wheel falls off and the car rolls over and you’re catastrophically injured, then they have no responsibility.”
Under the current terms of the Chrysler bankruptcy, consumers injured by a defective Chrysler vehicle produced before the company’s bankruptcy filing won’t even be allowed, by law, to sue the automaker.
However, a number of consumer groups, such as Public Citizen, Center for Auto Safety, Consumer Action, Consumers for Auto Reliability and Safety, and the National Association of Consumer Advocates, are speaking out against Chrysler’s bankruptcy. A congressional hearing to discuss the matter has been set for this week, but the bankruptcy court is expected to push through Chrysler’s case as soon as next week.
In addition to those who have been injured by a Chrysler vehicle, those who own a Chrysler vehicle will likely be hurt by the courts ruling. With Chrysler now taking no responsibility for vehicles built before April 30th, Chrysler’s resale values are expected to plummet even further.
Not sure how that works… but don’t buy a car from these guys!