Chrysler Shipments May Be Halted By California

Chrysler Corp. would be barred from shipping new cars to California for 60 days as punishment for 116 violations of the state’s anti-lemon law, under a proposed decision by a state administrative law judge.

The carmaker would also be placed on probation for three years.

Chrysler was found last week to have violated laws requiring carmakers to tell buyers that cars were “lemons” that were remanufactured after being bought back from unhappy consumers.

Anne Bersinger, the action director of the California Department of Motor Vehicles, has asked Judge Keith Levy to reconsider his decision.

“A strong sanction is warranted by the extent of the violations committed by Chrysler Corp., but we must be certain that the impact would not be felt by innocent parties,” said Bersinger. “Sanctions imposed must make it clear that compliance with California lemon laws is to be taken very seriously.”

While the suspension wouldn’t stop dealers from selling Chrysler vehicles, it would prevent the automaker from shipping new cars into the state. Technically, the DMV would suspend Chrysler’s manufacturing license to do business in California, said DMV spokesman Bill Gengler.

“We don’t feel we can comment until we have had a chance to look at the decision,” Chrysler spokesman Mike McKesson, said Friday.