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Chrysler Changes Tune on Product Liability Lawsuits ANN ARBOR, MI (Michigan Radio) - Chrysler has had a change of heart on some lawsuits it planned to leave behind in bankruptcy court.

The new Chrysler said it wouldn't pay for accidents that happen after its bankrutpcy, caused by defective vehicles purchased before the bankruptcy.

Spokesman Michael Palese says the automaker didn't want to be burdened while it was testing new legs in the marketplace. Now,

"The leadership of the company feels a lot more comfortable that the company's long-term viability will be strong," he says, "and we can accept these claims and absorb them over time without burdening the company and perhaps throwing it back into bankruptcy."

Customers who own or purchase a used Chrysler vehicle will now be able to sue the company if a defect in the vehicle is responsible for an accident.

The change does not apply to lawsuits that had already been filed before the bankruptcy happened. Those lawsuits will remain as a liability of OldCarCo, the name for the parts of Chrysler that were left behind in bankruptcy court.

It's believed the total liability Chrysler has assumed is about 300 million dollars, over the next ten years.
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