Government No Longer Backing Warranties

[The Dark Knight]

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.

[Kyle2k]

Originally Posted by TheDarkKnight_23

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.

This seems like a good thing for all the people that are skeptical about the company being controlled by the government and refusing to give it up- but I am sure someone will be bitching shortly

[nester7929]

Good. I don't want the same entity that runs the post office to be in charge of fixing my car if it ever came to that.

[DGthe3]

Originally Posted by nester7929

Good. I don't want the same entity that runs the post office to be in charge of fixing my car if it ever came to that.

Thats good because they would never be in charge of fixing your car in the first place. It was all a mater of who pays for it: GM or the government. Either way, you would have taken your car to the shop, and got warranty work done and drive away with your car when its all done. But this is a moot point now anyways, and I am resisting the urge to compare this to other government backed programs.