If General Motors goes bankrupt,
will you still get warranty?

Never in my life time did I think I would have to think of this question.
If the US car companies go bankrupt, that probably releases them from all contracts regarding living up to their warranties. Unless it was a part of the bankruptcy negotiations.

General Motors and Chrysler could walk away from all of their warranty obligations if they declare bankruptcy.. That would leave millions of car owners fending for themselves.

Will this happen? It's not likely, given the Federal Governments propensity to keep helping out the car companies.

By definition General Motors and Chrysler are bankrupt. So... there is a possibility that they will not live up to their warranties in the future.


Answers on How the GM, Chrysler Restructuring Will Affect Your Car

By Ylan Q. Mui
Washington Post Staff Writer
Tuesday, February 17, 2009; 9:00 PM

General Motors and Chrysler delivered their plans for survival today to the White House in order to receive billions of dollars in loans. Here are some answers to questions about how their restructuring could affect what's in your garage.

Q. Will the warranty on my car or truck be affected?

A. The short answer is no. The automakers are obligated to fulfill their end of the contract as long as they remain open for business, said Philip Reed, senior consumer advice editor at Edmunds.com.

General Motors has said several times that it will honor all outstanding warranties in the United States and worldwide as it attempts to stay solvent. At Chrysler, a spokesman said yesterday that the company "stands by its customers."

However, if an automaker did fall into bankruptcy, the fate of consumer warranties would be unclear. Reed said the issue likely would be addressed quickly in that worst-case scenario.

What happens if one of the automakers goes bankrupt?