Topic: Chrysler - "Sure we will cover you, but if you die, we are off the hook."

[aquadorhj]

http://www.leftlanenews.com/report-new-chrysler-will-be-off-the-hook-for-any-defective-vehicles-made-before-april-30.html

Report: “New” Chrysler will be off the hook for any defective vehicles made before April 30

Posted By Drew Johnson On May22 @ 8:56 am In Chrysler News | 2 Comments

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.

In US, through bankruptcy Chrysler is washing its hands of any liability responsibility from its cars....  even cars with safety recall.   How is this even legal?
should government allow this?..  and Chrysler is now partly owned by US citizens...  wow.. it sucks.

[toolatecrew]

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Don't know if you could have planned it any better.

[tenpenny]

In US, through bankruptcy Chrysler is washing its hands of any liability responsibility from its cars....  even cars with safety recall.   How is this even legal?
should government allow this?..  and Chrysler is now partly owned by US citizens...  wow.. it sucks.

That's the whole point of bankruptcy - you walk away from all responsibilities.

[dougjp]

Totally confusing post because the subject says something different than the post's contents.

[Mitlov]

In US, through bankruptcy Chrysler is washing its hands of any liability responsibility from its cars....  even cars with safety recall.   How is this even legal?
should government allow this?..  and Chrysler is now partly owned by US citizens...  wow.. it sucks.

That's the whole point of bankruptcy - you walk away from all responsibilities.

But bankruptcy doesn't normally insulate you from wrongful death actions which have not yet accrued.  It only releases you from existing debts (including accrued claims which people have not yet sued over).  This whole article feels a bit off to me...like maybe the author misunderstood what was going on and accidentally posted an erroneous statement.

Plus, if Chrysler was going to be prospectively released from all wrongful death suits, before the claims even accrued, I think it's be all over the news here.  It isn't.