Would You Buy a Car From a Company in Bankruptcy?
The troubled Big Three Detroit automakers -- GM, Ford and Chrysler -- have consistently opposed bankruptcy as a way out of their struggles, an option advocated by a number of others.
Their argument: No one wants to buy a car from a company in bankruptcy. Consumers would not sink $25,000, $35,000 or $50,000 into a new vehicle with no confidence that the company they bought it from would still be around to service the vehicle and provide parts, the automakers say. Not to mention what it would do to trade-in value.
Further, they say, the precipitous dive in sales would drive the automakers from Chapter 11 -- restructuring bankruptcy -- into Chapter 7 -- liquidation bankruptcy. If you force us to go into bankruptcy, the Big Three say, you dig our grave.
The automakers have trotted out numerous surveys to support their case.
We want to know what you think: If GM, Ford and/or Chrysler declared Chapter 11 bankruptcy, would you buy a new or used car built by them?
And here's an additional question: Suppose the warranties on cars built by bankruptcy automakers were backed by the government, as some Republican(!) lawmakers are proposing?
Tell us your opinion in the comments section below.
-- Frank Ahrens
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December 12, 2008; 3:15 PM ET
Categories: The Ticker | Tags: Chrysler, Ford, GM, automakers, bankruptcy
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