Feds end Chrysler warranty guarantees

With the emergence of Chrysler Group from bankruptcy, the Obama Administration is terminating its program that essentially provided government guarantees for new vehicle warranties. The $641 million allocated for the program, that also covered new GM vehicles, has been returned to the Treasury with interest.

“With the successful emergence of the new companies, consumers can now feel assured that the companies have the financial wherewithal to meet their warranty commitments on a continuing basis,” said Ron Bloom, the new head of the auto task force, told the House Judiciary Subcommittee.

Chrysler declined to say how much of the money it used while it was in Chapter 11 bankruptcy. Spokesman Max Gates said he company doe not give out warranty information and cannot discuss expenditures that took place while the company was under court protection. General Motors Co. did not use any of the funds.

 Like on Facebook