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Feds end Chrysler warranty guarantees

by Bill Cawthon on

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.

Bill Cawthon grew up in the auto industry in the 1950s. His Dad worked for Chrysler and Bill spent a number of Saturdays down on the plant floor at Dodge Main in Hamtramck. Bill is also the U.S. market correspondent for just-auto.com, a British auto industry publication, and a member of the Texas Auto Writers Association, which has named the Jeep Grand Cherokee the “SUV of Texas” several times and named the Ram 1500 as the “Truck of Texas” two years running.

Bill has owned five Plymouths (including the only 1962 “Texan”), one Dodge and one Chrysler and is still trying to figure out how to justify a Wrangler. He also has owned at least one of every 1:87 scale model of a Chrysler product. You can reach him directly at (206) 888-7324 or by using the form.

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