ChryCo finally acknowledges that denying outstanding liability claims while taking taxpayer money was kind of a dick move.
In a letter sent today to Members of Congress, Chrysler Group LLC
announced that 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, 2009, 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. “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 on April 30, 2009. Following many
complex and lengthy hearings, 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 today’s announcement, Chrysler Group’s approach is consistent with
that taken by General Motors as part of its bankruptcy process.“We want our customers to feel comfortable and confident buying, driving and
enjoying one of our vehicles,” Bozzella said. “Chrysler Group vehicles meet
or exceed all applicable federal safety standards and have excellent safety
records.”
How is this a good use of our taxpayer dollars?
Their generosity is not without limits. The key phrase is “involved in accidents on or after that date [June 10, the date of the asset sale].” In other words, claimants whose injuries had already occurred as of that date are still out of luck, except for whatever crumbs they can get as unsecured creditors in the “Old Carco” bankruptcy.
That is, indeed, exactly what GM did. The post-sale claimants have the stronger legal argument against their claims being extinguished. And it’s an argument that they would have made in the courts of every state, starting with the states that have ruled in previous cases they were not barred by a bankruptcy sale order from imposing liability on the successor company. So this is in part good P.R., and I suspect in part based on a calculation of the cost of 50 appeals to state supreme courts.
The 1928 Chrysler Imperial 80 Limo pictured, is much more interesting than who’s screwing who. I look at those art pieces, and can’t believe where we are in the state of affairs, with the automobile today.
CyCarConsulting, you nailed it. As both engineering art and as a commodity, U.S. brands are largely failures today. I know that the Big 3 can turn it all around, but I have no confidence that they have enough time and resources to make it happen.
Even though changing their stance on claims is a small move, at least it’s a step in the right direction.
@CyCarConsulting:
The only Chrysler I’ve seen lately that I’d “feel comfortable and confident buying, driving and
enjoying” is that 1928 Imperial!
Dittos, texlovera, the model designation 80 relates to the car easily cruising at 80 mph, all day long. Truly a sweet ride.