'New' GM, Chrysler Shed Liability Claims

Unresolved personal injury claims against Chrysler LLC and General Motors have little chance of advancing after their bankruptcies, experts say.

Despite persistent attempts by attorneys for the claimants to prevent it, both automakers have emerged from bankruptcy without liability for most of the claims, the Los Angeles Times reported.

Under the terms of their reorganizations, the "new" GM and Chrysler will be liable for damages caused by cars made after bankruptcy, but neither will be liable for damages from accidents taking place before their filings, the newspaper said, adding that GM will be liable for future accidents involving cars built before the bankruptcy filing, but Chrysler will not be.

"Bankruptcy is a very complex and difficult process," Chrysler spokesman Mike Palese told the Times. It was "really important for the future viability of the company that we would be free from this type of liability."

"They are taking care of parts, but they aren't taking care of people," said Christine Spagnoli, president of Consumer Attorneys of California.

Some 3,400 Americans are likely to be killed or injured in accidents involving alleged defects in GM and Chrysler cars in the next year, experts told the Times.

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