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by Matt Brogan

If several US consumer groups get their way used Chrylser vehicles could soon come with a warning notice advising potential buyers that, under the terms of its Chapter 11 bankruptcy filing, Chrysler shed its liability for any defective vehicles produced before May 30th this year.

It is estimated that in the United States alone some 30 million used Chrysler vehicles have lost liability protection previously afforded by state laws.

“In Chrysler’s bankruptcy, the ability to form a new company free from the product liability burden of the old company was essential to the new company’s survival,” Chrysler spokesman Michael Palese said . “This is not an issue involving an identified potential safety issue with these vehicles, nor do petitioners claim to have uncovered a systemic defect that requires disclosure.”

Fortunately the decision is yet to be finalised with the US Fair Trade Commission yet to decide if it will move forward with the case. In any case, the new law would take at least one year to filter through.

Australian Chrysler vehicles will not be directly affected by this decision.




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