Now that Chrysler and General Motors have declared bankruptcy, it is unlikely that they will be held accountable for defective vehicles manufactured before bankruptcy was filed.
Unfortunately, a report by Safety Research and Strategies estimates that almost 3,500 Americans will be hurt or killed by a defective GM or Chrysler product within the first year of their bankruptcy.
Legal loopholes could allow for these companies to forego any legal payments to consumers who were injured in a car made before the bankruptcy. Since it would cost money for them to issue recalls for units known to be defective, there is no reason to believe they will in fact do so. This puts consumers at risk, and leaves buyers with no way to regain what they spent on medical bill and treatment for injuries that could have been avoided.
Though GM and Chrysler together make up only about 38 percent of the automobile market, they account for 47 percent of claims against auto manufacturers.