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New Chrysler Group LLC Will Honor “Lemon Law” Obligations

CONTACT: Sarah London, Assistant Attorney General, (802) 828-5479

Bankruptcy Court approves agreement with State Attorneys General

June 5, 2009 - Attorney General Bill Sorrell is pleased to announce that Fiat and the new Chrysler Group LLC have agreed to honor the “Lemon Law” rights of Chrysler owners when the new company takes control of the U.S. auto maker. The Vermont Attorney General’s Office is also monitoring the General Motors bankruptcy to protect the rights of consumers.

“This is an important win for consumers,” said Attorney General Sorrell. “Many Vermonters rely entirely on their cars for transportation. Now, they can continue to rely on the protection of our Lemon Law for their Chryslers.”

Vermont’s Lemon Law provides consumers with rights and procedures to obtain a refund or a replacement vehicle if a new vehicle develops a significant problem that can’t be repaired after a certain number of attempts.

The Italian automobile manufacturer Fiat will effectively take control over the new company after Chrysler emerges from bankruptcy. Fiat negotiated with a group of state attorneys general and agreed to honor all the rights consumers had under the “Old Chrysler” to seek and obtain a refund or replacement vehicle if their vehicle has a significant or recurring problem. The agreement is contained in writing in the Bankruptcy Court judge’s order dated Monday, June 1.

Consumers can visit the Vermont Department of Motor Vehicles’ website to learn more about Vermont’s Lemon Law.

  Website consulting provided by The National Association of Attorneys General.