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California State Ban on New Chrysler Imports Lifted

21 August 1997

The California New Motor Vehicle Board overturned sanctions imposed on state Chrysler dealers for violating the state's "lemon law," and sent the case back to the DMV.

The state contends that in 1991, Chrysler sold 116 used cars that were "lemons," cars with chronic repair problems. If the law had been upheld, it would have prohibited Chrysler from shipping new cars to its 240 California retailers for a period of 45 days, which probably would have bankrupted some dealers. Chrysler estimates that the overturned penalty would have cost each dealer $60.000. The matter is not closed, but will be reconsidered.

Bill Maloney -- The Auto Channel