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Filed under: Car Buying, Government/Legal, Chrysler, LLC., GM, Carsumer Advocacy

When Chrysler was in Chapter 11, the U.S. bankruptcy court decided that the new Pentastar would be free of any liability for accidents that involve Chrysler-branded products sold prior the bankruptcy. Automotive News is reporting that five consumer groups are looking to get the word out that used Chrysler products will not be eligible for such liability claims by putting a warning sticker on each and every used Dodge, Chrysler, and Jeep that is for sale.

The Federal Trade Commission is reviewing the petition, which states that consumers who purchase a used Chrysler vehicle risk "being held responsible for millions of dollars in medical expenses, hundreds of thousands of dollars in lost income and other losses - with no possibility of recompense - even if their injury was clearly Chrysler's fault." Under the current plan, customers looking to sue Chrysler for defective product concerns will have to go after old Chrysler, which is broke, bankrupt, and doomed.

Chrysler, of course, is against the petition, as the warning may harm a dealer's ability to sell used Chrysler-branded products. In an email to Automotive News, Chrysler spokesman Michael Palese wrote "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." Palese also mentions that the petition has also uncovered no new defects or safety issues.

Automotive News is also reporting that General Motors has worked out a deal with state attorneys general to consider claims as long as they were submitted after the automaker's bankruptcy.

[Source: Automotive News - subs req'd | Image: Robyn Beck/AFP/Getty]Consumer groups reportedly asking for liability warning labels on used Chryslers originally appeared on Autoblog on Wed, 08 Jul 2009 11:30:00 EST. Please see our terms for use of feeds.

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