Car Manufacturers Need to Steer Clear of Bankruptcy
December 28th, 2005 by admin
Car Buyers Won’t Purchase From a Shaky Company
When Daewoo folded years ago, many customers were left with cars they were still financing that could not be fixed when they stalled because parts were not available. Warranty’s purchased from the manufacturer were voided and the buyers were left to bear the burden of a car that no longer had a parent company to back it.
A recent survey suggests buyers won’t enter into a similar situation this year.
There’s been talk in automotive circles that General Motors may be on the road to bankruptcy court. But GM executives may do a U-turn after reading the results of a new study that finds car buyers wary of buying a car from a bankrupt company.
The survey by Directions Research, Inc., found that only 26 percent of respondents said they would buy or lease a car manufactured by a company that was in bankruptcy.
GM will probably not collapse, but bankruptcy might be an option they choose. This survey may discourage that once attractive alternative.
See Also
- AutoWarranties.com
Warranties available on any year, make, or model vehicle with any mileage
Posted on Wednesday, December 28th, 2005 at 9:20 am
In Auto Warranty