Chrysler Group to Expand Accepted Product Liability Claims
AUBURN HILLS, MI - Chrysler Group LLC announced Aug. 27 the company will accept product liability claims on vehicles manufactured by Chrysler LLC (now OldCarco LLC) before June 10, 2009, and involved in accidents on or after that date. On June 10, Chrysler Group purchased substantially all of the assets of Old Carco.
"We know a lot more about the viability of our business today than when we purchased Old Carco's assets in its bankruptcy proceedings several months ago," said John Bozzella, senior vice president, External Affairs & Public Policy, Chrysler Group LLC, in a letter sent Aug. 27 to Members of Congress. "While Chrysler Group still faces challenges, we are confident that the future viability of the company will not be threatened if we accept these claims."
OldCarco filed for bankruptcy protection April 30. The bankruptcy court approved the sale of substantially all of OldCarco's assets to a newly formed company, Chrysler Group LLC. As part of the bankruptcy court-approved purchase, Chrysler Group had agreed to assume liability only for cars sold by Chrysler Group. As a result of this announcement, Chrysler Group's approach is consistent with that taken by General Motors as part of its bankruptcy process.