Troubled US car-maker Chrysler has spent $1.3 billion buying back so-called "lemon" vehicles from customers since 1993 - the bulk of which ended up later being resold to new consumers, the Wall Street Journalreported today.
The article cited internal company documents unsealed last week in a continuing North Carolina lawsuit.
In the documents Chrysler said it repurchased 58,000 vehicles in that period with persistent mechanical problems. The company recouped roughly two-thirds of the $1.3 billion reselling the vehicles at auction to dealers, the newspaper reported.
In a statement Chrysler said it is "not a shocking revelation that auto manufacturers repurchase a small number of vehicles from consumers every year." The company said it is also "not unique to . . . resell returned or reconditioned products."
The Journalsaid the North Carolina lawsuit turns on allegations by a local couple Chrysler and a dealer resold a "lemon" without properly warning the buyer.
AFP