While filing bankruptcy may be a good move to reconsolidate and restructure the company, abandonment of the Warrentee contracts would be a bad PR move. I doubt they could overcome the stigma and it would hurt future sales such as to make recovery impossible for Chrysler.

How many remember? The New York Daily News ran Iacocca'spicture with the headline "WOULD YOU BUY A USED CAR FROM THIS MAN?" It seems that chrysler employees at the St Louis plant, were routinely taking cars out for test drives. A regular practice by the big three. But, with the odometers disconected and an occasional case of minor repairs, it was turned into a major fraud scandal by the US atty's office here in St Louis.

Ethical or not the practice had Chrysler in the crosshairs, just as they were becoming succesful. Lee saw it a serious threat to the company's reputation. One it wouldn't get over. He offered to buy all the cars back, or replace with new comparable models and extend the warrantees on any of the suspect cars for two years. When the bean counters told him that was overboard Lee responded, " Hey, at times like this, don't quibble."

Later he added "A company can only exist as long as the public is satisfied with it's performance, and the public is (sic) telling us it didn't like what we'd done."

If Chrysler uses the courts to get out of an oblibgation to it's vendors and it's labor contracts, the company will survive. If it does so to the customer, they won't sell another car.

Lee, where are you when we need you?


roadster with a stick