New Chrysler to Accept Product Liability Claims of Former Entity

Chrysler Group LLC says it will begin accepting product liability claims on vehicles built before it went into bankruptcy earlier this year, a move that should clear up a controversial element of its Chapter 11 proceedings.

The auto maker says in a letter to Congress it will accept claims on vehicles built before June 10, 2009, and involved in accidents before and after that date.

The decision should take some heat off the new Chrysler, which during its bankruptcy gained release from product liability, leaving that responsibility with its former entity. The former General Motors Corp. did the same and was met by throngs of protesters outside bankruptcy court in Manhattan. It also will accept future product liability claims as the new General Motors Co.

John Bozzella, senior vice president-external affairs and public policy, says, “We know a lot more about the viability of our business today…we are confident that the future viability of the company will not be threatened if we accept these claims.”

Chrysler LLC filed for bankruptcy April 10 and exited seven weeks later as Chrysler Group LLC and under management by Fiat Auto Group.