Rumors Of A Merger Spark Auto Warranty Worries
As if people haven’t found enough reasons not to purchase a new car, recent rumors about a possible merger between Chrysler and GM have raised added doubts for motorists.
There are many questions raised by the possibility that GM may acquire Chrysler, but followers of the industry say that one question by consumers who recently bought or are thinking of buying a new Chrysler that shouldn’t be of concern is what will come of their auto warranty coverage if another carmaker purchases Chrysler.
Joe Phillippi, who is a principal with consulting and vehicle research firm AutoTrends, claims that all carmakers maintain an auto warranty reserve that will cover auto warranty expenses. Also, he says that Chrysler’s reserve would be used initially to cover claims, but if a merger were to occur the buying company would take on the responsibility.