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Chrysler Group To Expand Accepted Product Liability Claims

Date: 08.27.09
PRESS RELEASE:

Decision reflects confidence in viability of the company

Auburn Hills, Mich. , Aug 27, 2009 -
In a letter sent today to Members of Congress, Chrysler Group LLC announced that the company will accept product liability claims on vehicles manufactured by Chrysler LLC (now OldCarco LLC) before June 10, 2009, and involved in accidents on or after that date. On June 10, 2009, Chrysler Group purchased substantially all of the assets of Old Carco. “We know a lot more about the viability of our business today than when we purchased Old Carco’s assets in its bankruptcy proceedings several months ago,” said John Bozzella, Senior Vice President, External Affairs & Public Policy, Chrysler Group LLC. “While Chrysler Group still faces challenges, we are confident that the future viability of the company will not be threatened if we accept these claims.” OldCarco filed for bankruptcy protection on April 30, 2009. Following many complex and lengthy hearings, the bankruptcy court approved the sale of substantially all of OldCarco’s assets to a newly formed company, Chrysler Group LLC. As part of the bankruptcy court-approved purchase, Chrysler Group had agreed to assume liability only for cars sold by Chrysler Group. As a result of today’s announcement, Chrysler Group’s approach is consistent with that taken by General Motors as part of its bankruptcy process. “We want our customers to feel comfortable and confident buying, driving and enjoying one of our vehicles,” Bozzella said. “Chrysler Group vehicles meet or exceed all applicable federal safety standards and have excellent safety records.”

Source: Chrysler Media Services