Auto Restructuring Plan Includes Warranty Guarantees for GM and Chrysler Vehicles

Warranty Guarantees For GM And Chrysler Vehicles
Update #1 March-30-2009 0930 PDT: Included remarks from President Barack Obama

In a move to bolster consumer confidence, the White House and the U.S. Treasury Department have announced a new program that guarantees the warranty of every new GM and Chrysler car and truck sold during the companies' restructuring efforts, even if one or both of the companies becomes unable to honor warranty claims during that period.

”If you buy a car from Chrysler or General Motors, you will be able to get your car serviced and repaired, just like always,” asserted President Barack Obama, during his speech on the automotive bailout, Monday morning. “Your warranty will be safe. In fact, it will be safer than it’s ever been. Because starting today, the United States government will stand behind your warranty.”

Consumers won't have to do anything to qualify for the warranty guarantee. Enrollment will be automatic when a vehicle is purchased.

Under the so-called Warranty Commitment Program, GM and Chrysler will each partially fund a special-purpose company that will pay covered warranty claims. The total amount of cash to be contributed will be 125 percent of the expected cost of warranty service on each covered vehicle. The manufacturers will contribute 15 percent of the expected cost from company funds, and the federal government will provide additional funds to cover the remaining 110 percent.

If GM or Chrysler goes out of business, the warranty administrator and the U.S. government will search for a third-party warranty service provider to assume responsibility for all the warranties covered by the program in exchange for the assets of the program.

Should Ford request government assistance in the future -- Ford hasn't yet asked for federal help -- the Warranty Commitment Program would cover its vehicles as well.

Comments

What about those of us who purchased BEFORE the restructuring? I purchased my NEW 2008 vehicle in December.

I purchased in January. I hope my warranty will be covered

What happens when the suppliers of the parts to those GM/Chrysler cars under warranty cease to exist when the car makers themselves go belly up? Think 2 or 3 years from now,a new engine block or axle housing will be available for warranty repair? The government needs to get out of the car business.It has never gotten anything else right.

We're trying to find out the program's effective start date. Stay tuned.

"Your warranty will be safe. In fact, it will be safer than it’s ever been. Because starting today, YOU THE U.S. TAXPAYER will stand behind your own warranty".......fixed it!

I can't believe this is happening. Boycott GM.

Any word about GM Canada and Chrysler Canada? Will this cover cars sold in Canada too or does the Canadian government have to build a similar program in our country?

any chance ford could be used a the third party to service GM or chrysler product? That would help them Ford out if GM cant stay in business

"Any word about GM Canada and Chrysler Canada? Will this cover cars sold in Canada too or does the Canadian government have to build a similar program in our country?"

- If the US government guarantees warantees on Canadian vehicles, I'm moving to Mexico.

My Ford is built so tough it doesn't need a bailout. hopefully Ford will stay as the only true strong American auto company. They know not taking the bailout money gives customer confidence. let Chrystler blow they are crap vehicles. gm just needs to make less cars so they get more profit, for example they should only make good chevys, and shorten the line.

-Ford Truck man

-God Bless

I'm from Canada and I too am wondering about the warranty coverage. I have a 2008 G5GT. Air bags are all ready an issue. Spent a week in the shop repairing the air bags alone. Hopefully coverage isn't an issue. This will make or break my decision to own another GM product.

I have an 07 Silverado. This makes me sick. GM will cut every corner they can and the cars will become crap. It's probably a good time to be in the aftermarket auto parts business. I wouldn't be surprised to see Obama make parts on full size trucks and SUV's obsolete so people can't keep them going.


Baseball, hotdogs, apple pie and Chevrolet. (I love by pre-Obama truck.)



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