Chrysler dealers help calm customer concerns surrounding bankruptcy

By Sarah Rice (srice@wsbt.com)

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Chrysler bankruptcy

Chrysler dealers are trying to ease the concern of customers who are worried about everything from warranties to parts in the wake of the company's bankruptcy. (WSBT photo)

By WSBT News1

Story Created: May 4, 2009 at 3:58 PM EST

Story Updated: May 7, 2009 at 10:57 AM EST

MISHAWAKA — A bankruptcy judge delayed a decision Monday on whether Chrysler can merge with Italian automaker Fiat. Chrysler is shutting down plants until it emerges from bankruptcy. The news is creating concern for customers who are wondering about everything from warranties to parts.

In recent months, it's a brand that's been synonymous with uncertainty. But Chrysler dealerships say not anymore.

"You know, I think if you can say you can get all this reorganization done in 30 to 60 days, move ahead with a clear plan, is best for everyone," said Gurley Leep CEO Don Reese.

Gurley Leep in Mishawaka is one of 3,200 Chrysler dealers across the country. Reese says customers who've bought a Chrysler vehicle shouldn't worry. If something happens, it will be covered.

"Chrysler has agreed to honor all warranties and the government will underwrite the warranties while in bankruptcy after April 30. So, beginning May 1 any vehicles purchased May 1 and on, those warranties will be underwritten by the federal government," Reese explained.

Reese says parts used to fix cars are available.

"Chrysler just announced in the last two days that they've been warehousing parts," he said. "Parts availability is there."

But he admits customers may be nervous after hearing the nation's third largest automaker filed for bankruptcy.

"But you know, in our system, it's a way to allow companies to reemerge in a more healthy manner when the timing is such that they can't do it today on their own," said Reese.

And Reese says a clear plan can may help turn fears into optimism.

"I think some consumers' decisions have been postponed based on a lot of the uncertainty, not only Chrysler, but General Motors and others. So, I think from a consumer standpoint, it's going to take some of the trepidations out of the equations," said Reese.

Reese says merging with Fiat will help Chrysler become a more global competitor.

Overall, U.S. auto sales dropped 34 percent in April from a year earlier. Chrysler had the worst showing among Detroit's Big Three, down 48 percent.

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