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post #1 of 1 (permalink) Old 09-16-2009, 08:39 AM Thread Starter
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Canada Ends Auto Guarantees

Ottawa ends warranty guarantees for GM, Chrysler

No longer needed, Clement says



OTTAWA -- The federal government announced Wednesday it is terminating its program to guarantee auto warranties on new vehicles from General Motors of Canada Ltd. and Chrysler Canada Inc. now that both companies have emerged from court-supervised restructurings.

"The objective of the warranty program was to provide confidence to GM's and Chrysler's customers during a period of uncertainty while the companies restructured," Tony Clement, the Industry Minister, said in a statement. "With both companies now emerged from bankruptcy protection, consumers are assured their warranty commitments will be honoured. Therefore, there is no longer the need for the federal government to continue with the program."

The program was introduced in April, and copied a similar U.S. scheme. Under the plan, the federal government committed to honouring consumer warranties on new vehicles purchased from GM Canada or Chrysler for a limited period while restructuring plans were being implemented.

The United States has also terminated its program.

LINK: Ottawa ends warranty gurantees for GM, Chrysler

Rick

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