After filing for Chapter 11 bankruptcy protection, announcing plans of partnership with Italian automaker Fiat and the sale of some assets and operations, a “new” Chrysler was formed, now formally known as Chrysler Group LLC.

The federal government also lent the troubled automaker a helping hand when it financed the deal with US$6.6 billion in financing.

Chrysler vehicle owners, especially those with defective or bugged down cars will have a cause to rejoice as the automaker has recently announced that it would accept product liability claims on vehicles built by the “old” Chrysler that are involved in accidents after the completion of its bankruptcy which was in June.

John Bozzella, the Senior Vice President for External Affairs & Public Policy of Chrysler Group LLC said that despite the challenges that lie ahead for the company, they are confident that the future viability of the company will not be threatened if these claims are accepted.

Under the Product Liability Law, manufacturers, distributors, suppliers, retailers, and others who make products available to the public are held responsible for the injuries those products cause. Consumers who are injured by the use of the defective product have the right to sue the seller or manufacturer for damages suffered.

Thus, Chrysler, as an automobile manufacturer will certainly be obliged to compensate consumers for the damage they incurred for faulty and/or defectively designed vehicles.

Motor vehicle defects in particular, have been the subject of several product liability and common law suits have involved defects such as:

•    SUVs designs that are prone to rolling over
•    Tires that are prone to blowouts
•    Unstable motorcycles that “wobble” when driven at high speeds

While Chrysler announcement is indeed good news, the company emphasizes that the claims they will entertain will not include those filed prior to the company’s bankruptcy. Chrysler Group had agreed to assume liability only for cars sold by Chrysler Group. So, consumers better take note of that condition.

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