Today, it was reported on CNN.com that Honda is issuing a recall on 440,000 vehicles. According to the article, there is a potential defect in driver-side airbags in 2001-02 Honda Accords, 2001 Civics and 2002-03 Acura TLs. Already, six injuries and one death have been reported.
So, what does this recall have to do with Chrysler?
Well, this article points out the flaw in the bankruptcy court’s decision to absolve Fiat and Chrysler of any liability for injuries or deaths resulting from defective Chryslers which were bought before the bankruptcy. This would have been the case in all 440,000 Hondas which have been recalled.
Couldn’t the bankruptcy court have been more thoughtful about the decision? Most times, bankruptcy courts require the debtor to purchase insurance in order to cover such liabilities. Why didn’t Fiat or Chrysler purchase insurance so that the consumer doesn’t suffer? Families who purchased Chryslers before the bankruptcy will suffer an undue hardship if a loved one is seriously injured or killed as a result of a defect in the car, truck or SUV. Shouldn’t that cost be shifted to the new entity through insurance?
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