In a reversal of its earlier position, Chrysler Group LLC has announced it will accept product liability claims for vehicles manufactured before Italian automaker Fiat took a controlling interest in the new company June 10. (See "Chrysler out of bankruptcy.")
 
The move has the potential to affect owners of millions of vehicles built before Chrysler filed for bankruptcy on April 30, 2009 and idled its factories.
 
As part of the bankruptcy agreement that led to formation of the new company, Chrysler Group LLC was absolved of liability for defects in vehicles built by the “old” Chrysler that might have led to accidents or injuries.
 
Company officials say the reason for the change is they now feel the business is more viable than originally thought, and that they want the public to feel more confident about buying their vehicles. (Read: "Chrysler bankruptcy leaves injured consumers without recourse" and "Chrysler bankruptcy affecting lemon-law payments.")

The company also says the new arrangement is more consistent with policy of General Motors following their bankruptcy. (Read: "What post-bankruptcy GM means to you.") 

Learn more about the auto crisis in our special guide.

 
—Jim Travers