First the U.S. Transportation Dept., Now State of California Get on Chrysler's Case

07/01/96

Chrysler's suspected violation of a lemon law could cost the automaker the sales of 15,000 new cars, if the State of California has it's way next August. The state claims Chrysler resold 116 vehicles in 1990 and 1991 without disclosing the cars were bought back by the company or dealers as "lemons". There will be a public hearing in August to determine whether the state will uphold the suspension of sales of all Chrysler models for 30-60 days. Chrysler says this penalty will do more harm than curtail sales, as sales people, suppliers, truckers, and many others would be effected. The state said, however, they may allow Chrysler to BUY it's way out of the predicament. The latter solution is most likely what will happen, as Chrysler is having it's best sales year in decades.

Bill Maloney -- The Auto Channel