Personal Injury Law

Chrysler Bankruptcy Update: Car Giant To Accept More Product Liability Claims.

By Wayne Parsons

The AP (8/27) reported, "Chrysler Group LLC said Thursday it will accept product liability claims in a broader number of cases than originally planned in its reorganization under bankruptcy protection. The automaker said it will now consider product-related lawsuits from consumers involved in accidents that occurred after Chrysler emerged from bankruptcy protection in June that involve vehicles manufactured by the old company." Joanne Doroshow, "executive director of the Center for Justice and Democracy, said Chrysler had 'responded to pressure from injured victims and consumer groups and we commend them for taking this important step to protect public safety.'"

The Detroit News (8/27, Shepardson) reported that Chrysler senior vice president for external affairs and public policy John Bozzella said, "While Chrysler Group still faces challenges, we are confident today that the future viability of the company will not be threatened if we assume these obligations." Chrysler "noted its approach is now consistent with that taken by General Motors Co. as part of its bankruptcy process, Chrysler said. But Chrysler will not accept liability for lawsuits filed for incidents filed before June 10."

Bloomberg News (8/27, Rosenblatt) reported that as part of the original bankruptcy agreement, Chrysler had "agreed to assume liability only for cars sold by the newly formed company."

The Wall Street Journal (8/27, Linebaugh) and Reuters (8/27, Bailey) also covered the story.

Full post as published by Honolulu Personal Injury Lawyer on August 28, 2009 (boomark / email).