Chrysler Financial Returns to N.Y. Leasing with Federal Law Eliminating Lessor Vicarious Liability

Chrysler Financial, a business unit of DaimlerChrysler Services North America, is returning to the vehicle leasing market in the state of
New York beginning Aug. 10, 2005. With the signing of the federal
transportation bill into law by President Bush, New York’s lessor vicarious liability law is eliminated.

Leasing companies, under New York’s law, are held responsible for personal injury and property damage caused by the driver of a leased vehicle, regardless of the fact that the leasing company has absolutely no control over the use or operation of the vehicle. Under the proposed new federal law, lessor vicarious liability is eliminated.

“We are pleased to be able to offer the consumers in New York the same vehicle leasing products and services that we offer to consumers in the other 49 states,” said William Jones Jr., vice president – Chrysler Financial. “Chrysler Financial, along with the New York State Automotive Dealers Association and the Alliance of Automotive Manufacturers, is supportive of this new consumer-based legislation.”

Chrysler Financial ceased vehicle leasing in the state of New York
in May 2004 as a way to combat the risk, however, it in no way reportedly reflected a long-term business solution.