What Happens to the Manufacturer’s Warranty if my Car Brand goes Bankrupt?

Bar Association ApprovedDo you drive a Chrysler or General Motors vehicle and have been wondering about what will happen to the manufacturer's warranty or if your car exhibits defects that qualify it as a "lemon"? This is a realistic concern that many car owners are struggling with.

It's no doubt that we are facing one of the most difficult economic times in modern automotive history. Aside from Chrysler and General Motors declaring bankruptcy, there are thousands of car dealerships that are closing down or consolidating, leaving consumers worried about the consequences.

When a car brand faces financial trouble, they are typically sold by one automaker to another. If a car brand goes bankrupt, the "sister" brands from the same parent company are responsible to honor both standard and extended warranties, given the extended warranties are manufacturer-backed.

If a parent company goes bankrupt, consumers are still protected. On March 30, 2009, the federal government introduced the Warranty Commitment Program, in which they back the warranties purchased at the time the manufacturers were restructuring. This applies even if the manufacturer eventually goes out of business, so you can be confident that your manufacturer-backed warranty will continue to be valid.

An experienced lawyer can help assist you in car manufacturer warranty matters. In case a car dealership or manufacturer insists on not honoring the warranty, a lawyer can provide civil litigation on your behalf. If you are suffering frequent break downs under warranty, a lawyer can also make a difference. Attorney Search Network can help you find a lawyer in your area that can protect your consumer rights.


If you have any questions about the information provided above, please contact Attorney Search Network.

Contact Attorney Search Network for an Attorney Referral to an pre-screened Product Liability Lawyer.

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