Chrysler Group LLC said on Thursday it is now confident enough about its business to accept product defect claims that arise on vehicles built before its sale process was completed in June.
Chrysler's predecessor, Chrysler LLC, filed for bankruptcy protection on April 30 and the sale of substantially all of its assets was completed on June 10 to Chrysler Group LLC, which is managed by Italy's Fiat SpA (FIA.MI).
The automaker said it would take on product liability claims on vehicles built by the old Chrysler that are involved in accidents after the sale was completed.
While Chrysler Group still faces challenges, we are confident that the future viability of the company will not be threatened if we accept these claims, John Bozzella, senior vice president of external affairs and public policy, said in a statement.
Chrysler said the change made the automaker's approach to its liabilities consistent with the path taken by rival General Motors Co GM.UL, which underwent a similar bankruptcy and sale process that was completed in July.
GM, which became a majority state-owned automaker through that bankruptcy and sale process, agreed to assume liability for future product defect claims following a negotiation with government officials.
(Reporting by David Bailey; editing by Carol Bishopric)