Posted on 12/13/2008 10:08:33 AM PST by BGHater
Just over half of U.S. consumers say they won't buy a car from an auto maker that is in bankruptcy.
A new poll by Rasmussen Reports of consumer found that 51 percent said they would not buy a car from a manufacturer who is in Chapter 11 bankruptcy reorganization.
Thirty-one percent in surveyed said they would be "OK" buying a car from a bankrupt car maker. Another 18 percent weren't sure.
American auto manufacturers are in dire straits with Auburn Hills, Mich.-based Chrysler LLC and Detroit, Mich.-based General Motors Corp. (NYSE: GM) nearing bankruptcy without federal loans and help. Republicans in the U.S. Senate shot down a $14 billion federal bailout plan seeking more pay concessions from the United Auto Workers union.
Some critics of the bailout want the two troubled companies to file for bankruptcy protection so they can reorganize and restructure. Others worry that if they file for bankruptcy, consumers will have little interest in buying their cars and trucks, which would spiral them further down.
Ford Motor Co. (NYSE: F) also is in financial trouble and facing a decrease in sales, but the Dearborn, Mich., car maker is not in the same bankruptcy peril as GM and Chrysler.
Jeez I can’t understand why...
If a car salesman sold a car to every other customer who came into the dealership he'd be one happy creepy guy....errrr....I mean person.
Why would the consumers be reluctant? Guarantee no good? Repairs are iffy? Workmanship would be suspect because of angry employees?
I can assure you this... if the auto bailout gets approved... I will, never, ever buy an American car again. I don't think I'm the only one who feels this way.
Anyone know where I can find a Studebaker dealer to fix the transmission on my Lark?
If the price is right.
I’m not sure I’d buy from them now, even before they may or may not go into bankruptcy. I like my Silverado’s, but would like to see things settle out before buying another. My current Silverado is a low mileage 2007 model, so I have plenty of time.
And of that 50%, only 10% probably CAN buy a car - from anyone.
Many Freepers, including this one, won’t buy cars from MORALLY bankrupt automakers that have been taken over by morally bankrupt unions and (if the Dems have their way) environmental zealots.
Just stick a chevy trany in there. They make adapters.
Makes no difference to me. I am buying a new 2010 Camaro as soon as they get released to the local dealers. I will have my Camaro. Oh yes, I will have it.
What would happen is that once the bankruptcies occurred, the Gub’ment will arrange sales in which all maintenance warranties guarantee would have to be honored by the new company.
This is a dumb survey. Of course, most folks are going to answer “no” when asked if they’d buy a vehicle from an automaker in bankruptcy. I’ll bet that they’d answer the same way if asked if they’d fly on airline in bankruptcy, yet the reality is that Americans trust their very lives to bankrupt airlines all the time. Let’s say that a bankrupt GM is selling an attractive car (i.e., the new Camaro) at an attractive price and the bankruptcy court works out some sort of warranty guarantee plan (i.e., the warranty is backed up by some entity other than GM itself), you can that few buyers will care that GM is technically insolvent.
A more correct headline would be, "Americans say they will not buy cars from reorganizing automakers". History also shows that they will do so. People seem to forget that Chrysler was bankrupt when the federal government loaned that company tons of money 25 years ago. Chrysler reorganized but Iacocca really did not fix the structural problems as many people who were shouted down back then noted. Their prediction was that Chrysler...and the other Detroit automakers...would be back in the future.
Congress insisted banks loan money to people who were not credit-worthy. We had the mortgage meltdown. Now we have Congress insisting we loan money to GM and Chrysler who are not credit-worthy because they are too big to fail. If they fail, look for smaller, more efficient automobile makers to fill the vacuum...though most likely not in Detroit a/k/a New Fallujah a/k/a As Corrupt as Chicago, Just Smaller.
It is ashame we cannot simply declare Congress bankrupt and insist all of the thugs resign, convert to Shintoism, and commit hari cari.
If it does happen, I’m looking at Toyota, Kia, Nissan, Honda, Hyundai, and other non American car companies.. No bailout to the unions...
And Braniff 1 thought no one would get on an airline that was bankrupt. Continental proved that wrong.
I want to buy a new Ford. Why doesn’t the government just give a big tax break to anyone that wants to buy American? this would give the taxpayer a break and sell a lot of cars for the big three. Why is this not being discussed??
agree - I’ll never buy from Detroit again if they take the money.
They should have surveyed how many people will never buy from a nationalized car company.
Or survey how many people will buy from a company that everyone knows is bankrupt but just won’t do it.
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