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The Dark Knight · 07-22-2009, 02:26 PM

THE AUTO INDUSTRY BAILOUT

Government ends warranty program for GM, Chrysler

Executive pay levels to be reviewed by compensation czar

Neil Roland
Automotive News
July 21, 2009 - 11:39 am ET
UPDATED: 7/21/09 4:21 p.m. ET

WASHINGTON -- The Obama administration's automotive task force, after successfully moving General Motors and Chrysler Group out of bankruptcy protection, is ending the government-financed warranty program for the two automakers.

Ron Bloom, the new head of the task force, informed a House Judiciary subcommittee about the decision in testimony here today.

"With the successful emergence of the new companies, consumers can now feel assured that the companies have the financial wherewithal to meet their warranty commitments on a continuing basis," Bloom said in his prepared testimony.

Bloom said that the $641 million invested by the United States in the program has been returned to the Treasury along with interest payments. He called this a "prudent short-term use of taxpayer funds."

It was not immediately clear -- and Bloom didn't say -- if either automaker needed to tap any funds.
GM did not use the funds, said GM spokesman Greg Martin.
Chrysler spokesman Max Gates said the company does not give out warranty figures.

"So we can't discuss any amounts disbursed from the account during the bankruptcy period," he said.

On March 30, President Obama announced the warranty program to assure car buyers that their warranties would be honored while GM and Chrysler reorganized under bankruptcy court protection.

GM filed for protection June 1 and emerged on July 10. Chrysler filed April 30 and exited June 10.

07-22-2009, 02:26 PM	#1
The Dark Knight Batmobile in Disguise Drives: 2009 Pontiac G8 Join Date: Aug 2008 Location: Upland, Ca Posts: 2,079	Government No Longer Backing Warranties THE AUTO INDUSTRY BAILOUT Government ends warranty program for GM, Chrysler Executive pay levels to be reviewed by compensation czar Neil Roland Automotive News July 21, 2009 - 11:39 am ET UPDATED: 7/21/09 4:21 p.m. ET WASHINGTON -- The Obama administration's automotive task force, after successfully moving General Motors and Chrysler Group out of bankruptcy protection, is ending the government-financed warranty program for the two automakers. Ron Bloom, the new head of the task force, informed a House Judiciary subcommittee about the decision in testimony here today. "With the successful emergence of the new companies, consumers can now feel assured that the companies have the financial wherewithal to meet their warranty commitments on a continuing basis," Bloom said in his prepared testimony. Bloom said that the $641 million invested by the United States in the program has been returned to the Treasury along with interest payments. He called this a "prudent short-term use of taxpayer funds." It was not immediately clear -- and Bloom didn't say -- if either automaker needed to tap any funds. GM did not use the funds, said GM spokesman Greg Martin. Chrysler spokesman Max Gates said the company does not give out warranty figures. "So we can't discuss any amounts disbursed from the account during the bankruptcy period," he said. On March 30, President Obama announced the warranty program to assure car buyers that their warranties would be honored while GM and Chrysler reorganized under bankruptcy court protection. GM filed for protection June 1 and emerged on July 10. Chrysler filed April 30 and exited June 10.