Chrysler to File for Bankruptcy

Today, President Barack Obama announced that Chrysler will file for Chapter 11 bankruptcy protection. He used the term “controlled” to describe the filing. Under this form of bankruptcy, a judge will be able to force the creditors currently refusing to take less money from the government to do so.

Because most of the concessions the government was seeking have been reached, there’s less for Chrysler to do under bankruptcy. One detail that must still become official — an alliance with Fiat — will be completed under bankruptcy. That deal could include the closing of some dealerships, which could only have been accomplished with bankruptcy protection and could make the proceedings last a long time.

The federal government also extended its backing of Chrysler warranties during bankruptcy proceedings.

Chrysler is extending its current Employee Pricing Plus Plus incentives through Monday, when a new May incentive plan will be announced.

If you have questions about how the bankruptcy will affect your Chrysler, Dodge or Jeep warranty, you can contact Chrysler’s customer service department at 800-992-1997 or visit its website for owners.