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Discussion Starter #1
Q9: How will U.S. dealers get paid for warranty work?
A9: Our priority is to do what is right for our customers. Dealers will continue
to get paid for warranty work; there is no plan to change that process.

Q10: How will the bankruptcy filing effect existing CJD vehicle warranties?
A10: There is no change to existing warranties. All warranties will continue to
be in effect and honored.

Q11: How does the bankruptcy filing affect the warranty if a customer
purchases a new vehicle tomorrow?

There will be no effect on the warranty of a new vehicle purchased during
the reorganization. The warranty will remain valid for the duration of the
warranty period. The warranty is guaranteed by the U.S. government if
the vehicle is/was purchased from March 30, 2009 to June 30, 2009. In
addition, a possibility exists for a renewal or extension based on mutual
agreement.

Q12: How does the bankruptcy filing affect the U.S. government backing
of Chrysler vehicle warranties?

There will be no effect on the warranty of a new vehicle purchased during
the reorganization. The warranty will remain valid for the duration of the
warranty period. The warranty is guaranteed by the U.S. government if
the vehicle is/was purchased from March 30, 2009 to June 30, 2009. In
addition, a possibility exists for a renewal or extension based on mutual
agreement.

Q13: What vehicle warranties are backed by the U.S. government? (Any
Chrysler, Jeep or Dodge with a valid warranty, or only vehicles
purchased after the announcement of the government backing?)

A13: As initially announced, the U.S. government said it would back the
warranties for customers who purchase a new Chrysler, Jeep or Dodge
vehicle from March 30, 2009 to June 30, 2009, but the possibility exists for
a renewal or extension based on mutual agreement.

Q14: Will the timeframe for reimbursement for warranty work change
during the reorganization process?

We have no plans to change the process or timeframe for reimbursements
for warranty work.

Q16: How will the bankruptcy filing effect payments to dealers from
Chrysler?

A16: Our plan is it will have no effect on eligible payments to dealers. We have applied for permission from the court to pay virtually all of our dealers’
factory receivables.

Q17: Will Mopar continue to exist ?
A17: Mopar is, and will continue to be, a valuable part of the Chrysler company business.

Q18: Will parts for older Chrysler (Mopar) vehicles continue to be available
for purchase through a local dealer and for how long:

A18: Yes, they will continue to be available and the process for how long
authorized service and replacement parts are available will not change
during the reorganization.

Q19: How will dealers get paid for service contract work?
A19: We plan no changes to the process for how dealers are paid under the
terms of the service contract.

Reference: Dealer FAQ May 1, 2009
 

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Discussion Starter #3
Lemon Law protection

Friday, May 29, 2009, 5:01pm EDT

Lemon Law protection still in place for Chrysler cars

Purchasers of Chrysler vehicles will continue to have protection under Ohio’s Lemon Law while the Detroit automaker sells assets through bankruptcy.

Ohio Attorney General Richard Cordray announced Friday that his office has withdrawn an objection to the pending sale of Chrysler LLC assets after winning assurances that Ohio and other state lemon laws will not be disregarded during the bankruptcy process.

A multi-state negotiating group involved in the Chrysler bankruptcy came to an accord on state lemon laws Friday.

Ohio’s law provides financial protection to consumers who purchase new vehicles, entitling them to a refund or replacement of the vehicle if one or more problems covered by the warranty arises soon after purchase.

Chrysler filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court in New York on April 30. Since then, Cordray and other state attorneys general have been filing objections to the proceedings in an effort to protect their consumers and industries.

“While Chrysler restructures, I want to make sure that Ohio’s consumers retain the strong protections afforded to them under Ohio law,” Cordray said in a statement. “This agreement ensures that despite the sale of Chrysler, the Lemon Law still will continue to guard Chrysler’s customers.”

Two other objections from Ohio are pending in Chrysler’s case. One seeks to ensure that Chrysler respects workers’ compensation commitments, while the other asks the court to maintain the recourse provided under state law for dealerships forced to close.

Cordray added that he plans to file similar objections if, as is expected, Detroit-based General Motors Corp. files for bankruptcy reorganization in the coming weeks.

LINK:Lemon Law protection still in place for Chrysler cars - Business First of Columbus:
 

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Discussion Starter #4
Government ends warranty program

Government ends warranty program for GM, Chrysler

July 10, 2009

WASHINGTON --General Motors and Chrysler said Friday an Obama administration program to backstop warranties, which ended with GM's emergence from bankruptcy, helped the companies stabilize sales during their period of transition.

President Barack Obama made the warranty guarantee program part of the government's multibillion dollar effort to steer the companies through bankruptcy proceedings and bolster consumer confidence in their vehicles. GM and Chrysler continued warranty coverage during their respective bankruptcies, so the program was never used.

"I want to remind everyone that if you are considering buying a GM car during this period of restructuring, your warrantees will be safe and government-backed," Obama said on June 1 as GM entered bankruptcy. The Detroit automaker exited Chapter 11 protection on Friday.

A Treasury Department official who spoke on condition of anonymity said the warranty commitment programs would end for both companies since their restructuring had been completed and their risk of not honoring their warranties had subsided. The $650 million in taxpayer funds for the program will be returned to the Treasury, said the official, who was not authorized to speak publicly.

In June, General Motors sales fell 33.4 percent despite incentives and discounts, but its decline improved when compared with previous months. Chrysler, which emerged from bankruptcy protection in June, saw sales drop 41.9 percent for the month, but that was better than previous months.

GM spokesman Greg Martin said the warranty program "added an extra measure of assurance at a time when consumer apprehension was potentially at its highest."

Kathy Graham, a Chrysler spokeswoman, said Obama's efforts "actually spurred (consumers) to come to a Chrysler dealer."

LINK:Government ends warranty program for GM, Chrysler - Boston.com
 

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Discussion Starter #5
Chrysler repays U.S. $280 mln

Jul 14, 2009, 4:43 p.m. EST
Chrysler repays U.S. $280 mln for warranty protect

WASHINGTON (MarketWatch) -- Chrysler Holding LLC has repaid the government $280.13 million that has been used by the car company to provide warranties to customers during the bankruptcy process, the Treasury Department said Tuesday. The government, which loaned Chrysler billions of dollars to keep it from liquidation, backed the automaker's warranties as part of its swift passage through the bankruptcy process.

LINK:MarketWatch.com Story
 
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