Saturday, May 9

Update: Those Government-Backed General Motors Warranties

A couple weeks ago I pointed out that we should all be wary when the Government claims that they are going to back the warranties of GM and Chrysler cars.
Too bad that there is no way for the Government to convince me that they just won't change the terms of the deal at some point later on, just like they keep changing the rules on the banks that accepted the TARP money. So who knows if or when that wonderful US-backed warranty will turn into a huge anchor chained around your neck! - One Thing About those Government-Backed General Motors Warranties
Now comes confirmation in that Chrysler's warranties have hit a snag thanks to the company filing for bankruptcy.
The company said it had no plans at this point to ask the bankruptcy judge to approve payments to settle lemon law complaints. ”This is a complex process and there are a lot of issues being discussed,” said Chrysler spokesman Mike Palese. “This could be one of those issues that comes up in the course of the bankruptcy, but I can’t say that we have any plans to present it at this time.”

Chrysler advises customers with pending lemon law complaints to file a proof of claim form with the Bankruptcy Court and join the ranks of the automaker’s unsecured creditors.

“In that case, you’ll be lucky to get pennies on the dollar,” [Atlanta attorney Alex] Simanovsky said. - The Truth About Cars
The story quoted above only covers 'lemons', but I bet this will quickly spread to repairs that normally would have been covered by warranty as dealers find out that they are unable to get compensated for the repairs.

This is yet another reason why the Government should not have stepped in and why I won't be buying a Chrysler or GM car from either of them.
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