Government would set up a fund to cover the cost of warranty repairs if either company were to end up filing for bankruptcy
The fund that will be set up will cover 125% of the expected cost of future warranty repairs to ensure enough money is available for all repair claims. GM and Chrysler will contribute 15% of the amount required in cash, with government loans providing the rest.
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U.S. to Guarantee GM, Chrysler Warranties Amid Restructuring - WSJ.com
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