New cars under recall must be repaired before a dealer can sell them but used cars are under no such mandate.
On New Year's Eve, an Uber driver struck a family of three as they were crossing a San Francisco street. The driver, 57-year-old Syed Muzzaraf, turned into the crosswalk without yielding and struck six-year-old Sophia Liu, her brother and her mother, San Francisco District Supervisor Jane Kim told Autoblog's sister website, Tech Crunch. Sophia was killed and her mother remains in critical condition at San Francisco General Hospital.
When Chrysler sought bankruptcy protection on April 30, the Obama administration insisted that one of the conditions of its Chapter 11 filing were that all product lawsuits against the Pentastar were the responsibility of "Old Carco LLC." In other words, anyone in litigation with Chrysler as a result of injuries that may have been caused as a result of faulty product would never be paid. The move was obviously unpopular with anyone seeking to sue Chrysler, and it wasn't exactly a public relation
When Chrysler was in Chapter 11, the U.S. bankruptcy court decided that the new Pentastar would be free of any liability for accidents that involve Chrysler-branded products sold prior the bankruptcy. Automotive News is reporting that five consumer groups are looking to get the word out that used Chrysler products will not be eligible for such liability claims by putting a warning sticker on each and every used Dodge, Chrysler, and Jeep that is for sale.
A consumer group representing people who currently have product liability claims against GM and Chrysler looks like it won't be getting much, if any, restitution. When GM went into bankruptcy, it still planned to deny any liability claims -- ones that came up today, for instance -- when the new GM was formed. In a reversal meant to quell resistance from that consumer groups and state officials, New GM has agreed to assume liability for future claims on products made by Old GM.
Outside of bankruptcy, General Motors and Chrysler were no longer competitive enough to remain solvent. After Chapter 11 reorganization, the two automakers will have a clean financial statement and a whole lot fewer employees, plants, and dealers. Another area where the two automakers will receive a clean bill of health is product liability lawsuits, and the savings will be huge, The Detroit News reports. GM, for example, had $928 million in liability expenses (including court costs and lawyer f