Obama Administration to back GM, Chrysler Car Warranties in case of Bankruptcy

By Automotive Staff | April 06, 2009
If you are looking for more evidence that the Obama Administration plans a “pre-packaged” bankruptcy for General Motors and Chrysler, then consider what President Barack Obama said only days ago.He said that the federal government will guarantee General Motors and Chrysler warranties. Recent media reports and various surveys have shown that consumers would be less inclined to buy a GM or Chrysler car if those companies were to fall into bankruptcy because they believe that the warranties would not be honored. Well, in this case, with Obama’s proclamation, as Franklin Roosevelt said, consumers have “nothing to fear but fear itself.” The President also said that he will work with Congress to fund tax credits for consumers who scrap their old cars and buy a new, more fuel efficient car. Obama pointed out that programs like this in Europe have helped to boost sales of new cars. He also said that he will speed up programs that will accelerate auto sales including quicker purchases of government fleet vehicles and increase flow of credit to consumers and dealers. via AutoWeek