Warranty

I might buy one more PT Cruiser soon and I wonder what happens to the
extended warranty if Chrysler goes "belly-up"?

 

If they go Chapter 11 they won't have to honor the warranty unless they
want to,or the courts order them to. I would guess that under chapter 11
they would still honor their warranties as long as they could, if they
didn't they would have no chance of recovering. If they go chapter 7 then
there would be no company to honor the warranty. Third party warranties
are another matter, if you were to buy a third party warranty then it
would be honored as long as that company didn't go bankrupt.

 

It could be that all of the extended warranty money would go into a
dedicated account for such things rather than into a general operating
fund if it was a Genuine Chrysler LLC extended warranty. I suspect this
would be considered a contractual obligation that could be enforced no
matter what.

In the case of an aftermarket extended warranty, you can get hung out
for any repairs until the company decides to pay what they want to of
the claim you might submit.

According to the document filed with the Treasury, Chrysler has the
lowest warranty claims/vehicle in the US auto industry. Might not need
very much of the extended warranty, hopefully.

Just some thoughts,

C-BODY

 

Not sure how they are now, but my 1994 Dodge had no big problems until
it was well past the warranty date.