Company to accept ‘OldCarco’ product liability claims

Posted on Friday, August 28th, 2009 at 1:27 PM EDT.

In a letter sent Aug. 27 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,” John Bozzella, Senior Vice President, External Affairs and Public Policy, said. “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.”

This entry was posted on Friday, August 28th, 2009 at 1:27 PM EDT and is filed under Restructuring and tagged Dashboard, Lead. You can follow any comments to this entry through the RSS 2.0 feed. Comments are currently closed.