By By JESSICA SIEFF / Niles Daily Star
With the latest news out of the auto industry surrounding GM's recent entrance into Chapter 11 bankruptcy, the possible move to sell its Hummer brand to a manufacturing company out of China and another possibility of a Saturn sale to Penske – though industry funds and jobs may be dwindling – one thing in abundance when it comes to the future of the automobile is uncertainty.
Some reassurance for consumers, however, came Thursday from Chrysler who preceded GM in bankruptcy court.
The Michigan State Attorney General's office announced that Chrysler Group LLC has agreed to uphold the state's "Lemon Law" rights of consumers who purchased or leased their vehicles during the reign of the pre-bankruptcy Chrysler as the company reinvents itself under new management: Fiat.
"We want to do everything we can to ensure Chrysler jobs in Michigan are protected after its reorganization, but we have to ensure that Michigan consumers are protected as well," State Attorney General Michael Cox said. "Thanks to the work of my office, Chrysler Group LLC, and other state Attorneys General, Michigan consumers will remain protected."
The law protects consumers by ensuring them that should a vehicle that has been purchased or leased be defective, a replacement of the vehicle or a refund of the cost of a lease is to be provided.
As described by the Secretary of State's office, a defective vehicle "is one in which the same problem has not been repaired after four attempts, or a vehicle that is out of service 30 days or more for repairs. The first report of the defect must be made within one year from the date of delivery to the original purchaser or lessee or during the term of the manufacturer's warranty, whichever period is shorter."
Chrysler recently terminated contracts with area dealers including Gurley Leep Dodge in Mishawaka, Heart City in Elkhart and Siemans in St. Joseph.
Tyler Automotive in Niles was spared -and owner Scott Tyler said that, while instances of the Lemon Law taking effect are quite "rare," should an owner find the dealer where they purchased their vehicle no longer deals with Chrysler, they can still come to remaining certified dealers such as his.
"We're here to help people when they have a problem," he said.
States will also watch the General Motors bankruptcy proceedings very carefully to ensure that all necessary steps are taken to protect its car buyers around the country, Cox said.
The state provides a few simple steps to consumers to protect their rights:
Keep copies of all correspondence to and from the manufacturer and the dealer.
Keep copies of all work orders for repairs on the vehicle, including the date(s) the work was performed and the mileage on the vehicle at the time of the repair(s).
Follow all requirements of the warranty, including any requirement that the repairs must be done by an authorized dealer specified by the manufacturer.
General Motors announced it was filing bankruptcy at the beginning of this month, the full effects of that move have yet to be felt or even known for certain.
Chrysler terminated contracts with nearly 800 dealers last month and announced it would "begin the process of assuming and assigning the overwhelming majority of the company's supplier contracts to the new company established in a global alliance with Fiat SpA…"
For more information on consumer rights, visit www.michigan.gov/consumeralerts.