Consumers say they wouldn't buy car made by bankrupt company

[question everything]

Consumers say they wouldn't buy car made by bankrupt company

REUTERS

December 29, 2005

DETROIT – Almost three of every four American consumers polled would not buy a car from a manufacturer that had declared bankruptcy, according to a recent survey, giving struggling U.S. automaker General Motors Corp. something else to think about.

(snip)

GM executives have denied speculation they would seek Chapter 11 protection in bankruptcy court. It has lost nearly $4 billion this year amid high health-care and materials costs, shrinking U.S. market share and declining sales of lucrative sport utility vehicles. The world's largest automaker said last month it would cut 30,000 North American manufacturing jobs and close a dozen plants as part of its plan to cut costs by $7 billion.

The survey indicates consumers would look at a bankrupt automaker very differently from a bankrupt airline. UAL Corp., Northwest Airlines Corp. and Delta Air Lines Inc. sport passenger levels similar to those before they filed for bankruptcy.

Other findings in the Directions Research survey: 72 percent of respondents said they would not consider buying a vehicle from a Chinese automaker, while 85 percent felt the same about an Indian manufacturer. Industry observers have said it is only a matter of time until a Chinese-made vehicle is sold in the United States. Whether such a car would be sold by a Chinese manufacturer under their own brand or by an established automaker with plants in China is still to be determined.

(snip)


Find this article at:
http://www.signonsandiego.com/uniontrib/20051229/news_1b29autos.html

[FlemingsGhost]

1. But willing to buy a whole lot of BS from a bankrupt administration

Can't seem to get enough, apparently.

[madrchsod]

2. Chrysler was bankrupt

seems alot of folks bought their cars...general motors is not going bankrupt. their top mangement is bankrupt---4 billion dollars to get out of buying the whole dam fiat motor company? they are lucky fiat let them off the hook!

[catzies]

3. But they fly on bankrup airlines, don't they?

:shrug:

[truthisfreedom]

5. sure do. Northwest has been bankrupt twice, and i've flown them both

times... sometimes they're the only airline i can fly from here to there.

[lakemonster11]

8. That's different.

Choosing an airline is a one-day thing. You're probably going to have your car for a long time and you want to make sure you can get parts and services.

[Selteri]

4. I wouldn't buy froma company that can't learnt that American's

aren'tbuying their products - AKA SUVs - and going to fuel efficient cars and decide the solution si to amek a bigger, more gas guzzling behemoth.

[spinbaby]

9. American companies are very slow to move

I recently rented an Impala that reminded me of every car I drove in the 70s-- I think they're marketing to the geriatric crowd.

[depakid]

6. People SAY they wouldn't buy a chinese car

but the Wallmart lemmings would be all over that in a New York minute if it were cheap enough.

[BR_Parkway]

7. When a company won't honor their pension obligations, why should they

honor their warranty obligations? They've already got your money, screw you.

[RUMMYisFROSTED]

10. $4 billion this year amid high health-care and material costs

The CEO makes enough to cover the healthcare costs of thousands.

Lying by omission.

[Jersey Ginny]

11. Corporate bankrupcy is just a reorg/welfare situation

There are other reasons to not buy a GM car, like they are boring, mostly get poor gas mileage, and you can get cars with better reliability for the same price. If that weren't the case, I'd buy a car from a company that declared bankrupcy as this is simply corporate welfare and most companies boune back.

[anotherdrew]

12. why should they? US executives have ruined America and FAILED their jobs

yes they're still rich, still held in esteem by the media complex. It's bullshit, these failed companies can go to hell, labor costs are NOT NOT NOT the reason these companies have failed. They've failed due to incompetent management. I'm still in and staying in BOYCOTT FUCKING EVERYTHING mode and will stay there for some time.

[happyslug]

13. Nonsense, like a lot of Polling

I call it the Ivory Soap vs Dove soap situation. Dove, Irish Spring and other soaps advertise heavily in Television so that when people think soap they thing Dove (or irish Spring etc). When you do a survey on soaps you will find people will named the most heavily advertised soaps. ont he other hand if you do a survey of what is in people's home, Ivory wins out (It is Good soap, cheaper than the rest).

The same with this Poll. People like to sound logical (even if they are not), thus they will ALWAYS say they will NOT buy from a bankrupt Company, yet when a Company goes bankrupt they do (Look at the Airline Industry and the excuses people use to "Justify" flying on such airlines).

The Classic Example of this is the Dewey-Truman Election of 1948. Truman was down in the Polls, the Republicans were Advertising heavily to get they man (Dewey) Elected. Up to a week before the elections the Polls were heavily in favor of Dewey do to these two affects. The problem was as the election neared people started to actually THINK about who to vote for. Like going into a Supermarket to buy Soap, you are no longer going by what first comes to your mind, you are looking at what is the better item (Presidential Candidate or Soap). Thus as the elections came near, people started to evaluate the Candidates and went to the polls voting Truman in for four more years (Carter almost did a similar act in 1980, behind in the Polls UNTIL THE WEEK BEFORE THE ELECTION when he almost won it).

Polls just reflect what people say at the time they are polled. GM is NOT bankrupt yet, thus most people do NOT have to address the issue of buying from a Bankrupt Company. Thus people's basic instinct to sound and look logical kicks in and you get the answer that buyers will not. On the other hand once GM files for Bankruptcy then and only then will BUYERS have to make that choice. Just like Air Line Passengers did not have to decide on flying on a bankrupt airline till one filed for Chapter 11, the same with Buyers of Automobiles, Buyers will only truly decide to buy or not buy from GM once GM declares bankruptcy. My Guess, once Buyers realized they have priority claim over pre-bankruptcy buyers, they will buy in droves (In Droves compared to who are buying GM cars today).

[TankLV]

14. The Dewey polling debacle was NOT due to second thoughts or

closeness to polling time.

It was ALL due to the fact that the pollsters polled people BY TELEPHONE, and at the time MOSTLY RICH REPUKES HAD PHONES and were HOME when any pollsters called. The average Joe/Jane was busy out working, and INDIVIDUAL TELEPHONES were at a premium.

And the fact that a car is A GREAT EXPENSE and intended to last 5 YEARS OR MORE, most people would appreciate a WARRANTY. A bankrupt company is not likely to honor any of their warranties, etc.

Look what happened to Monkey Wards.

[question everything]

15. I volunteered to do some calling for the Kerry campaign

I got many answering machines.

Frankly, unless I am expecting a call from a friend or a family member I screen the calls. Yes, I got rid of the telemarketing by registering with the "do not call" list but I am getting a call from every Democratic candidate in the area looking for help. And, of course, from every charity in the nation.

And it is this type of calls that I do not like to just say: no, thank you, and hang up.

So most of the polls "miss" me. One exception for special election locally and I was glad to help to have a yard sign. The candidate won, a Democrat replaced a Republican state senator. For now.

Also, many young people today do not even bother with land phones. They use cell phones exclusively. I think that this is why many polls predicted a Kerry win, and, I suspect, results will be even more skewed in 2006 and in 2008.

[pitohui]

16. oh sure they would

we get in the sky every day in our bankrupt airlines, northwest, united, delta, and all the rest, hell, continental's been bankrupt twice, the list goes on

don't tell me you get 35,000 feet in the air in a bankrupt airplane but you suddenly get cold feet in your ford taurus, after all, you'll still be the one at the wheel

i remember people said they wouldn't buy a lttle old korean automobile either, c'mon, if the price is right, the people will buy