April 30, 2009

Chrysler warranties are safe

Today Chrysler declared bankruptcy. The bankruptcy is a restructuring rather than a liquidation so the company will remain in business but just restructure its debts. Given that news I bet many owners of Chrysler vehicles (including Jeep, Dodge & Chrysler) will wonder if their warranty is still going to be honored. The short answer is that Chrysler warranties will be honored.

This AP article has some Q/A on the bankruptcy and it states:

"Q: Will I still be able to buy a Chrysler? If I already own one, will the company honor my warranty?

A: Yes, the company is expected to operate as it did before, with Chrysler selling cars and existing warranties guaranteed through a government program. ..."

In March the government committed to stand by warranties of GM or Chrysler if either went bankrupt. This Autoweek article on that quotes President Obama on that:
""Let me say this as plainly as I can. If you buy a car from Chrysler or General Motors, you will be able to get your car serviced and repaired just like always," Obama said in a speech. "Your warranty will be safe. In fact, it will be safer than it has ever been. Because starting today, the United States will stand behind your warranty."

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