Obama came out yesterday and said the federal government is essentially going to back warranties for GM & Chrysler vehicles. The government has created the Warranty Commitment Program, which is designed by the Treasury, to basically set aside and cover the cost of repairing vehicles with warranty claims. This basically guarantees your warranty if they file Chapter 11 or 7 bankruptcy.

Unfortunately, this program only applies to vehicles purchased on or after March 30, during the "restructuring phase." So, were Chrysler to file bankruptcy, we have no guarantee. The good news for us is that I spoke with a few accountant friends and warranties are kept as a liability on the books. And when it comes to bankruptcy proceedings, they're a higher class than other debts, so the automaker would have to pay for warranty claims and set aside a reserve to cover future repairs before they could pay off other debtors. Additionally, most warranties are typically insured, so we should be covered, it's just not guaranteed.

You can read a good article about the new program here:

http://www.msnbc.msn.com/id/29963390/

 

lol if dodge murges with fiat Im buying a ford thats all I haft to say about that..................

 

A big thanks for the link...

 

Yha because we all know Ferrari and Alfa Romeo and Maserati and Lancia are a result of the crap coming from the FIAT group....... :/

 

Unfortunately, this program only applies to vehicles purchased on or after March 30, during the "restructuring phase".

I would argue this. I bought mine March 16th and they were already in a restructuring phase. Obama did not accept their plan so what is the difference between when they received bailout money and March 30th.

That's right, punish us that bought when the economy/company needed us to and without the needed assurance of a Government backed warranty!

If the need ever arises, I would fight this to the best of my/our colective ability!

 

yep and it also would make it a foreighn owned brand which I dont buy.

but thats me others like paying the japanese goverment for their toyotas

 

i'm bit fuzzy on this warranty issue.

is this strictly if dodge ceases to exist?

 

So what, you are going to get rid of a brand new truck to go buy a Ford?

 

Seriously? You have to be kidding regarding that spelling.

 

1. They're talking about Fiat taking a 20 - 35% stake. That wouldn't make them foreign owned. This is in exchange for $8 - 10 billion in technology.

2. If you buy a Toyota, you're not paying the Japanese government. a) Part of that money is used to pay workers in the US (Tundras are assembled in San Antonio, TX). b) Part is used to pay suppliers based in the US that provide parts for the car. c) It pays for the dealer located in the US as well and their salespeople. d) And then finally a part goes to Toyota in Japan, but that's still not the Japanese government.