Merger Rumors Prompt Worries About Warranties
If there weren't already enough reasons for people to hold off on buying a new car, rumors about a potential merger between GM and Chrysler have brought up even more doubts for consumers.
The possibility of GM acquiring Chrysler raises many questions, but those who follow the industry insist one of the questions people who just bought or are about to buy a new Chrysler vehicle should not worry about is what will happen to their warranty coverage should another automaker purchase Chrysler.
Joe Phillippi, principal with automotive research and consulting firm AutoTrends, says all automakers keep a warranty reserve to cover the cost of warranty expenses, and that Chrysler's reserve initially would be used to handle claims, but in the case of a merger the buying company would assume responsibility.




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