Chrysler Extends Warranty

Chrysler Corp. announced that its 1964 models will be warranted directly by the company to the owner. In previous years, the company warranted the car to the dealer who in turn warranted it to the purchaser. General Motors Corp. adopted a direct warranty policy last year. Chrysler also announced that it has extended its five year or 50,000 mile warranty to in­clude the water pump and intake manifold. Previously only the engine and major power train components were covered.

Many at the AALA meeting felt that because of the guaranteed re­sale price being offered, Chrysler would have to operate its program at a loss, the only profit accruing would be in the form of increased volume. It was noted by several that auto companies have a built-in economic factor that the traditional lessors do not enjoy.

AUTOMOTIVE FLEET has learned that the AALA is consider­ing taking its case against Chry­sler to the Department of Justice or the Federal Trade Commission on restraint of trade or monopoly charges.

Chrysler Corp., by the way, has resigned from membership in the American Automotive Leasing Assn.

Reassurance was given at the meeting that leasing companies would receive the same number of Chevrolet cars by Oct. 15 that they had received a year ago. However, in many cases the cars will not come exclusively from the dealer's fleet allotment. Dealers will be ex­pected to assign cars to lessors out of their general allotment in cases where lessors need cars for delivery to customers on a specific date.