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If Chrysler goes down, what will happen to my car warranty?
I asked a guy at the dealership - and boy they're empty right now, I mean almost no customers! - and he said it will be taken over by the government. Well, wording "by the government" is sort of ambiguous for me plus there's no guarantee the gov't will want to take this mess over. So, who knows what? Appreciate any wisdom on it.
3 Answers
- Anonymous1 decade agoFavorite Answer
If it appears that Chrysler will be forced, by lack of operating capital, to shutter its plants and offices, Chrysler will likely act to voluntarily enter a bankruptcy proceeding in order to provide an orderly way of winding things up. However, if it didn't timely act to do so, any creditor may force it into bankruptcy. The benefit to the creditors of such a course of action is that it would provide one forum to litigate the many competing claims.
Once Chrysler is in bankruptcy, secured creditors (mortgage holders and others) would have first claim on its assets (in order of priority, usually meaning chronological order). Unsecured creditors, such as warranty holders and most suppliers, would be last, and the likelihood that there would be any assets left to compensate such is almost nil.
It could be that the government would step in to provide compensation to warranty holders, but if Chrysler were to enter a bankruptcy proceeding, the government would likely have concerns much bigger than compensating Chrysler warranty holders.
- C7SLv 71 decade ago
Nothing. The Warranty is an agreement. A Contract.
In this article, they talk about how you will still have warranties and places to fix your cars.
