Fiat has agreed to honor Lemon Law for Chrysler vehicles; battle continues for product liability
On June 2, I announced that Fiat, when it officially takes control of Chrysler's assets,
has agreed to honor state lemon laws that protect consumers who may have already purchased defective vehicles.
In coordination with Department of Consumer Protection (DCP) Commissioner Jerry Farrell, Jr., I raised objections in bankruptcy court after Fiat refused to affirmatively agree to honor state lemon laws, or to assume product liability for existing vehicles.
In a proposed order by the bankruptcy court, Fiat has agreed to honor rights consumers possessed as former Chrysler owners, enabling them to obtain a refund or replacement vehicle pursuant to the lemon law.
Meanwhile, I am considering steps to continue the battle to prevent Fiat from escaping responsibility for product liability for Chrysler vehicles. Fiat is seeking to escape product liability, which would leave countless Chrysler consumers unprotected and unable to fully pursue claims in court related to defective vehicles, including those severely injured because of defective vehicles.
Attorney General Richard Blumenthal hopes that Fiat will acknowledge product liability Connecticut's lemon law, like those of many other states, provides additional protection beyond the manufacturer's warranty, to consumers who purchase defective new vehicles that could not be fixed after a certain number of attempts.
We have turned a lemon law fight into legal lemonade -- winning an agreement that requires Fiat to honor Connecticut's lemon law and to provide refunds or replacement cars to consumers with defective vehicles.
We cautiously celebrate this victory, because the battle to protect consumers must continue vigorously in bankruptcy court.
My office will consider steps to fight for Fiat to accept product liability for defective vehicles, particularly when defects cause serious injury.
To establish trust and confidence with future consumers -- and to treat them fairly -- Fiat must accept not only assets, but also liability, from Chrysler.
I hope that Fiat will acknowledge product liability -- establishing itself as a good corporate citizen.
