The New Chrysler Group Will Honor "Lemon Law" Obligations

Bankruptcy Court approves agreement with State Attorneys General 

INDIANAPOLIS, IN – Indiana Attorney General Greg Zoeller announced today that Fiat and the new “Chrysler Group, LLC” have agreed to honor the “Lemon Law” rights of Chrysler buyers when the new company takes control of the U.S. auto maker.

State “Lemon Laws” provide consumers with rights and procedures to obtain a refund or a replacement vehicle if a new vehicle develops a significant problem that can’t be repaired after a certain number of repair attempts.

“I commend Fiat and the Chrysler Group, LLC partners for reaching a formal consumer protection Lemon Law agreement,” Zoeller said. “While we always hope the numbers of those who are required to take advantage of the Lemon Law are low, this marks a significant ‘win’ for Hoosiers and for consumers across the country.”

The agreement reached Tuesday was negotiated by state attorneys general and was reached with the new Chrysler Group, LLC, which will be owned by Fiat, the UAW, the U.S., and Canada. Specifically, the agreement orders that Chrysler Group, LLC will “…recognize, honor and pay liabilities under Lemon Laws for additional repairs, refunds, partial refunds (monetary damages) or replacement of a defective vehicle.”

Zoeller said the states will be watching the GM bankruptcy carefully for similar issues.

Indiana’s Lemon Laws

Lemon Law rights, known as The Motor Vehicle Protection Act in Indiana, vary from state to state, but they generally apply for several years or up to certain mileage limits for new vehicles purchased or leased by consumers.

What to do if you buy a lemon?

1. Report the problem within 18 months of purchase or before 18,000 miles, whichever comes first.

2. Take your vehicle to an authorized dealer for repair.

3. Allow a dealer a reasonable number of attempts to repair, meaning your vehicle is subject to at least four repair attempts OR is out of service due to repairs for at least 30 business days and the problem still exists.

4. Request a copy of the written repair order every time you take your car to the dealer for repair or examination.

5. Read your owner’s manual or vehicle warranty carefully.

·         Is written notice to the manufacturer required? If so, you must send written notice of your problem, along with copies of all repair orders to the manufacturer at the address identified in the owner’s manual or vehicle warranty.

·         Has the manufacturer adopted an informal dispute procedure that has been certified by the Attorney General? If so, you must follow the procedure before you can file a lawsuit under the Lemon Law.

·         If notice is NOT required and the manufacturer does not have an informal dispute procedure, you may file a lawsuit without notifying the manufacturer of your claim.

6. The manufacturer has 30 days to accept return of your vehicle and, at your option, replace the vehicle or refund your money.

7. If the manufacturer does not resolve your claim, you must file a lawsuit within two years from the date you first reported the problem to the dealer. If you win the lawsuit, you can recover all your costs and attorney fees.

For more information on Indiana’s Lemon Laws go to www.IndianaConsumer.com.