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Bankruptcy gives GM, Chrysler immunity

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Logos for Chrysler and General Motors are seen at the North American International Auto Show at the Cobo Center in a January 11, 2009 file photo in Detroit, Michigan. The Obama administration announced on April 30, 2009 that Chrysler would go through Chapter 11 bankruptcy, the first ever for a U.S. car dealer. Chrysler also signed a deal with Italian car maker Fiat. (UPI Photo/Brian Kersey/File) 
Published: June 23, 2009 at 9:21 AM
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NEW YORK, June 23 (UPI) -- More than 3,400 U.S. citizens could be killed or injured in the next 12 months by defective cars that are immune from lawsuits, a safety report said.

The Safety Research & Strategies report, "Public Safety at Risk: Bankruptcies Leave Legacy of Defects, Injuries and Deaths," details the fallout from potential accidents involving the 30 million GM and 10 million Chrysler products still on the road after bankruptcy agreements cancel the ability for accident victims to seek compensation by suing the companies.

"With more than 40 million vehicles in the U.S. fleet, the two companies accounted for 47 percent of all the claims filed against auto manufacturers" between the third quarter of 2003 and the fourth quarter of 2008, the report said.

In that period, Chrysler faced 3,497 death and injury claims. GM faced 15,284.

Post-bankruptcy proceedings, "there is every reason to conclude that the injury and death rates will continue,"" said Sean Kane, president and chief executive officer of Safety Research & Strategies.

"But the claims will disappear," he said.

With GM still in bankruptcy, eight state attorneys general filed an objection in court this week, seeking to keep GM from dodging liability claims.

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