Consumer group objects to Chrysler bankruptcy, says customers could be stranded without warranty
Joseph Heller's novel Catch-22 is an assault on bureaucratic circular logic, and when talk turns to Chrysler's bankruptcy, you can almost picture the book's character, Yossarian, shaking his head about the latest developments surrounding warranty claims. Current Chrysler owners might find themselves owning vehicular orphans whether or not the company manages to stick around in some form. Chrysler's bankruptcy deal, where there's an upside and a downside to the Schwartz, could see the new, "Good" Chrysler floating above any responsibility for any Chrysler vehicle sold before the bankruptcy.
Consumers groups, realizing that buyers will have no recourse, have filed an objection that's spurred a quickly organized hearing of the House Judiciary Committee. According to a report by ABC<, the new Chrysler has agreed to cover normal warranty claims, but when some new issue that would normally prompt a recall campaign pops up – or some other kind of defect rears its ugly head – the company would want nothing to do with it. Bad thingamajigy covered, horrible manufacturing or design defect that causes you injury, not covered. No right to sue, either.
It's not like Chrysler vehicles have stellar resale values now, but if this is how things shake out, the machinations to avoid standing behind its product are likely to further devalue anything wearing a Pentastar.
[Source: ABC]
Reader Comments (Page 1 of 2)
VW GTi 6:44PM (5/21/2009)
While I have no objection to discontinuing the warranty on all future models, they have no right to strand owners and loyal customers without a warranty they were guaranteed. Customers have rights and are protected against these types of things. Chrysler could even see legal action if they let that happen.
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Rob Roland 6:49PM (5/21/2009)
Seriously?
Get in line as a debtor with the bankruptcy courts.
No one wants to give Chrysler money and no one wants them to file bankruptcy.
Anyone got any better ideas? I wasn't going to buy one of their awful vehicles prior to this, so that's off the table.
Silly Pickle 6:45PM (5/21/2009)
............so....when will this bad news keeps a comin' finally materialize into ME getting an SRT8 on the cheap...like REAL cheap. $10g...take it...we don't want it anymore kinda cheap. ???
I promise not to drive it so much it pollutes the air...promise.
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inv4zn 6:49PM (5/21/2009)
Must be blow after blow for Chrysler owners...my condolences
You'd think that a company THAT large would hire people to avoid this kind of mess...but to see the idiots who are sitting at the top, trying to fill their own pockets without a care for the company they're supposed to be in charge of; it's sickening.
Those greedy bastards should have to pay (some of) the loan that probably made its way into their pockets anyway
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iOrange 7:04PM (5/21/2009)
Speculation... hey a heard a rumor that as of June 1st, all Chrysler, Jeep and Dodge vehicles will no longer start...something about the maker being in bankruptcy means the engines won't turn over.. They just won't, and there isn't anything anyone can do about it.. Where can I submit my speculation.. it seems anything negative gets posted... Hell if I tell one of my friends, we can be a consumer group too!
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Tourian 9:58AM (5/22/2009)
Don't forget to include the rumor that all the spare parts will suddenly vanish and all the techs trained to maintain them will suddenly have slective amnesia about how to do their job.
BoxerFanatic 11:08AM (5/22/2009)
Parts supplies CAN vanish.
Again, Gateway/MPC Computers... they stiffed their suppliers when they went bankrupt, as has Chrysler, according to the news, and specific laptop parts that are not standardized by design are now almost impossible to find, because they are not being made anymore, and supplies have been nearly exhausted.
Spare parts supplies are not necessarily built up-front to be able to support the products out in the market for their designed useful-life.
As for technicians... that is a matter of principle. Whether the technician or shop management want to continue to support products that are very difficult to find parts or corporate level support. If they don't want to deal with this mess, and part of me finds it hard to blame them... I could see how they could choose to 'forget' how to work on chryslers, if it costs them more to track things down than they can reasonably charge the consumer for, or make their margin on.
Service people don't work for free or a loss, they have to feed their families like you do. But they should do their best, and not leave people high and dry, as a matter of principle. I say it as one who is an IT equivalent basically to an auto-mechanic, and who has to deal with hundreds of Gateway/MPC laptop users that are now basically without the warranty and service contract that they paid for up-front.
StanleyVanBuren 7:25PM (5/21/2009)
Correct me if I'm wrong but if I understand this right, this will also mean that anyone with a lease will likely not choose to exercise the purchase option, leaving Chrysler stuck losing money on now-worthless lease returns that will sit on lots not selling.
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Folksagan 7:27PM (5/21/2009)
No wonder Chrysler is going bankrupt, poeple like Farbod Nourian are suing them because his cousin backed into him in his Jeep.
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whofan 7:52PM (5/21/2009)
I`d buy a Chrysler product and not think twice about it.
Weather you like Chrysler`s model styling or not is one thing .
As for the vehicles themselves Chrysler cars are as good as any other.
Where else can you get a vehicle warranty backed by the government?
Speculation is one person`s or group`s opinion. Don`t believe everything you read!
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John 10:58PM (5/21/2009)
Chrysler should be ecstatic that people as mindless as you exist.
You say: "Chrysler cars are as good as any other". I'm sorry, that is a load of B.......
Just look at any car rankings, I mean ANY, and you'll find Chrysler is always at the bottom of the pack if not DEAD LAST for reliability. I agree that a car can be anything (ugly, boring, cheap, etc.) but it MUST be reliable. Otherwise it's not a CAR it's a heap of metal sitting in your driveway.
mapoftazifosho 8:39AM (5/22/2009)
Why can't Chrysler make safe cars? Maybe just one IIHS top safety pick would be nice.
Frank 9:12AM (5/22/2009)
I think you are pushing the load of BS. Chrysler is dead last? That spot is reserved for VW, Land Rover, Suzuki, and Mitsubishi.
Hate to burst your bubble, but according to JD Powers, Chrysler, Dodge, and Jeep have had less problems than Nissans in their 3 year ownership survey. This is a common misconception (myth).
It was also thought that Mercedes had better quality than Chrysler at the time of the "merger of equals", and that Mercedes could teach Chrysler how to make better cars. The truth was that Mercedes was the less reliable make. Chrysler again was rated more reliable than Mercedes in the last JD Power 3 year survey. I think it has to do with that thing called perception vs. reality.
"Why can't Chrysler make safe cars?"
What? Chrysler cars are so heavy, even the smaller ones, because Daimler insisted that they all get 5 start ratings. The Jeep Compass and Patriot scored higher than Toyota in the recent roof crush test that the IIHS conducted that was reported here in Autoblog.
whofan 7:06PM (5/22/2009)
I don`t know if any of you guys drive Chrysler products or not?
I do along with GM and Ford. My Chryslers have served me as well if not better than the others.
To date I have yet to own a Toyota or Honda.
Erik 8:05PM (5/21/2009)
I was under the impression the government would back these warrantys.
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tpfilm 8:49PM (5/21/2009)
Government Backed Warranty:
Thank you for calling GBW Chrysler, how can I help you?
Yeah, my 2009 Jeep Wrangler won't go into 4Lo.
What's 4Lo?
(explanation deleted) for off road use.
I'm sorry, did you say you take your vehicle off paved roads and destroy the fragile environment, scare little animals, and waste gas and pollute the air for recreational purposes?
I go off road, yes.
The new warranty on your vehicle doesn't cover abuse while destroying the Earth. You should trade that fun, multi-purpose vehicle in for the new, USA Green car and leave the Earth a better place, further attempts to drive your vehicle your way will result in fines and sanctions from the Green Police. Thank you for calling and please support ACORN.
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Lanehog 10:40AM (5/22/2009)
You're SO funny
Will 10:47AM (5/22/2009)
Haha..."please support ACORN."
jpm100 9:14PM (5/21/2009)
Wait? Bankruptcy is not a Panacea?
And bankruptcy screws a bunch of people who don't happen to be Union Workers?
That must be some alternate world because I was told bankruptcy was the way.
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John 10:52PM (5/21/2009)
I think that if this information (or misinformation, depending how you see it) becomes widespread, Chrysler is headed straight for Chapter 7.
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