Chrysler Softens Line on ‘Old Carco’ Product Liability Claims
Posted by Trevor Reid on August 28, 2009
“Chrysler Group LLC said Thursday it will accept product liability claims in a broader number of cases than originally planned in its reorganization under bankruptcy protection. The automaker said it will now consider product-related lawsuits from consumers involved in accidents that occurred after Chrysler emerged from bankruptcy protection in June that involve vehicles manufactured by the old company.” Joanne Doroshow, executive director of the Center for Justice and Democracy, said Chrysler had “responded to pressure from injured victims and consumer groups and we commend them for taking this important step to protect public safety.” The Associated Press.
Chrysler senior vice president for external affairs and public policy John Bozzella said, “While Chrysler Group still faces challenges, we are confident today that the future viability of the company will not be threatened if we assume these obligations. [Our] approach is now consistent with that taken by General Motors Co. as part of its bankruptcy process. But Chrysler will not accept liability for lawsuits filed for incidents filed before June 10.” The Detroit News.
Bloomberg reported that as part of the original bankruptcy agreement, Chrysler had “agreed to assume liability only for cars sold by the newly formed company.”
Additional articles on this topic are carried by The Wall Street Journal and The New York Times.