Chrysler Group, LLC To Accept Product Liability Claims
In a letter to Senator Dick Durbin yesterday, Chrysler Group, LLC, announced it will accept product liability claims on vehicles manufactured by the former Chrysler, LLC (formerly known as "Old Carco, LLC") which were/are involved in accidents on or after June 10, 2009 (the date Old Carco filed for bankruptcy protection). This is a major reversal in Chrysler Group, LLC's position on this issue.
As part of a bankruptcy court-approved sale transaction, the "new" Chrysler Group, LLC would not have been responsible for product liability claims related to vehicles sold before June 10, 2009 by Old Carco. Most people buying vehicles on or after June 10, 2009, and manfactured by Old Carco, had no idea they would not be able to hold the manufacturer responsbile for any product defects because the claims would have been extinguished by the bankruptcy process. Naturally, this outraged consumer rights advocates. By accepting these product liability claims, Chrysler Group, LLC's position is consistent with that of General Motors and is a major victory for consumers.
