Frequently Asked Questions for Customers
What does this new company mean to me as a Chrysler, Dodge or Jeep Customer?
The partnership with Fiat transforms Chrysler into a vibrant new company with many strategic advantages. It enables Chrysler to better serve its customers and dealers with a broader and more competitive line-up of environmentally friendly, fuel-efficient high-quality vehicles.
Chrysler and its dealers will continue to sell and service vehicles and honor warranties without interruption. Consumers can continue to purchase our vehicles with complete confidence.
What is the ownership structure of the new company?
When the transaction is completed, the Voluntary Employee Beneficiary Association ( VEBA) will own 55 per cent of the new company and the U.S. and Canadian governments will own proportionate shares of a 10 percent stake. Fiat will initially own a 20 percent stake in Chrysler. Fiat will have the right to increase its ownership stake an additional 15 percent in three increments as it meets the following criteria: 5 percent for bringing a 40 mpg vehicle platform to Chrysler to be produced in the U.S.; 5 percent for providing a fuel-efficient engine family to be produced in t he U. S. for use in Chrysler vehicles; and 5 percent for providing Chrysler access to its vast global distribution network to facilitate the export of Chrysler vehicles. Fiat cannot become a majority owner until all U.S. Treasury loans have been completely repaid.
What is a Chapter 11, section 363 bankruptcy?
For the past several months, we have worked tirelessly to reach agreement with key stakeholders on concessions that would allow Chrysler to complete this alliance with Fiat and proceed with its plans without the need for a bankruptcy proceeding. Despite substantial progress on many fronts, Chrysler was not able to obtain the necessary concessions from all of its lenders. As a result, under the direction of the U.S. Treasury, Chrysler LLC and 24 of its wholly owned U.S. subsidiaries filed voluntary petitions under Chapter 11 of the U. S. Bankruptcy Code in order to help ensure the Company and its dealers would be stronger and more profitable going forward.
With this filing, we submitted a motion under Section 363 of the Bankruptcy Code, requesting the swift approval by the Court of the agreement with Fiat and the sale of Chrysler?s principal assets to the new company. The benefit of this type of filing is speed. It should allow a leaner new company to emerge in a matter of 30 to 60 days, well positioned for long-term viability.
Chrysler's Mexican, Canadian and other International operations are not part of any bankrutcy filing.
Is Chrysler still an American car company?
Chrysler?s operations, as now, will remain primarily based in the U.S., employ tens of thousands of Americans directly and at the supplier and dealer level, and will continue a proud tradition of American engineering and manufacturing into the future.
How will the customer experience be different during the reorganization process?
Chrysler has thousands of dealers across North America who are open and excited to sell and service Dodge, Jeep® and Chrysler cars and trucks. Customers looking to purchase a new vehicle can still do so at their local Dodge, Jeep® and Chrysler dealer.
Where do customers take their vehicle for warranty work?
We have thousands of dealers located across North America. Customers may take their vehicles to a local Dodge, Jeep® or Chrysler dealer, regardless of brand, for warranty work.
Will current Dodge, Jeep® and Chrysler dealerships add Fiat sales to their franchises?
The alliance allows for the potential distribution of Fiat vehicles through Chrysler?s dealerships, but it is too soon to discuss specifics.
How will the bankruptcy affect your operations outside of North America? Are you going out of business??
No, we are not going out of business. We recently announced our strategic alliance with Fiat, a strong player in all major international
markets. Our parent company filed for reorganization under the bankruptcy laws in the U.S., but that filing does not apply to any country outside of the U.S. Therefore, we continue to market, sell and service our vehicles as we did in the past.
Are you keeping your dealer body outside of North America?
It is important to stress that we plan to continue with our existing Dodge, Jeep® and Chrysler dealer network and utilize Fiat's strength to leverage our presence in those areas in which we currently don't have a dealer presence (white space) or those areas in which we can use more than one dealer due to the high level of potential customers.
How will the bankruptcy filing effect existing Dodge, Jeep® and Chrysler vehicle warranties?
There is no change to existing warranties. All warranties will continue to be in effect and honored.
How does the bankruptcy filing effect the warranty if a customer purchases a new vehicle tomorrow?
There will be no effect on the warranty of a new vehicle purchased during the reorganization. The warranty will remain valid for the duration of the warranty period. The warranty is guaranteed by the U.S. government if the vehicle is/was purchased from March 30, 2009 to June 30, 2009. In addition, a possibility exists for a renewal or extension based on mutual agreement.
The Canadian government announced a similar warranty guarantee program.
Will customers need to pay for warranty work and then get reimbursed from the dealer?
The customer process for warranty repairs will not change. Customers do not need to pay for warranty work at the time of service.
Where do customers take their vehicle for warranty work?
Here :), you can schedule your service online via the menu above, or call our service center through our toll-free number above.
If the dealer I purchased my vehicle from has gone out of business, how do I find a new dealer?
Don White's Timonium Chrysler Jeep and Dodge is not closing. We can assist you with any service, parts, or sales needs.
What happens to the loan for my vehicle?
Customers should continue to make their payments every month to the address on the statement, or continue to have their payment automatically debited from their bank. The obligation will continue to exist, similar to when a home mortgage is transferred to another lender.
What financing options are you offering consumers during the reorganization process?
In the United States, Dodge, Jeep® and Chrysler dealers have access to a number of different financing options at the local level as well as the ?Invest in America? partnership with credit unions nationwide. By mid-May, a financial services arrangement will be in place with GMAC assuming the role as the primary lender for our dealers and customers.
How will the reorganization affect the availability of service and replacement parts at dealerships?
At this time we do not anticipate any issue with the availability of service and replacement parts.
Will my service contract in the United States still be valid?
If your service contract was purchased through Chrysler and not a third party, your contract will be valid for the duration of the contract If your service contract was purchased as an Independent Third party Service Contract, most reputable service contract companies pay claims at competitive rates and will honor their contracts regardless of servicing dealer. To ensure coverage customers will need to contact their service contract provider and servicing dealer. If not honored most contracts are cancelable and the customer may be eligible to receive a prorated refund.
If the Service Contract is a Dealer Supported Service Contract (Dealer owns the Service Contract Company) it is unlikely that other dealers would support that contract, customers should contact the dealer they purchased the service contract from.
Where do I send my payment for my service contract?
Customers should continue to send your payments to the address on the invoice.
Will Mopar® continue to exist?
Mopar is, and will continue to be, a valuable part of the Chrysler company business.
Will Dodge, Jeep® and Chrysler dealers still sell genuine, originalequipment replacement Mopar parts during the reorganization?
Yes, and we encourage our customers to visit their local dealer for authorized Mopar replacement and performance parts.
Will parts for older Chrysler (Mopar) vehicles continue to be available for purchase through a local dealer and for how long?
Yes, they will continue to be available and the process for how long authorized service and replacement parts are available will not change during the reorganization.
I bought the $2.99 gas card promotion, is that, and will it continue to be valid?
Yes, there are no changes to that program.
Who can I contact if I have additional questions?
Customers with questions can call toll-free 877-271-1568 (US and Canada) or visit www.ChryslerRestructuring.com. Customers in international markets may call 503-597-7708.