DMV seeks ban on new Chrysler deliveries

State asks 60-day suspension; company accused of reselling 'lemons'

"SACRAMENTO –The Department of Motor Vehicles proposed a 60-day ban Friday on new car deliveries to California Chrysler dealers, ending a two-year investigation into the state's biggest case of 'lemon laundering.'

Consumer groups say lemon laundering is practiced by many companies. 'This is a national problem,' said Rosemary Shahan, founder of Consumers for Auto Reliability and Safety.

"The California DMV deserves credit because it's the only agency that has gone so far as it has, often against political pressure from the auto industry. 'But,' she added, 'California is definitely not the only state where this happens, and it's definitely not just Chrysler doing this.' "

– Associated Press, June 1, 1996

 

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