Warning

 

Close

Confirm Action

Are you sure you wish to do this?

Confirm Cancel
Member Login
Site Notices
Posted: 12/27/2005 5:56:59 PM EDT
------------------------

www.montereyherald.com/mld/montereyherald/business/13493977.htm

Posted on Tue, Dec. 27, 2005
Consumers won't buy from bankrupt car maker

Associated PressCHICAGO - Nearly three-quarters of Americans wouldn't buy a car from a bankrupt company, according to a recent survey.

In a nationwide survey by the Cincinnati-based research firm Directions Research Inc. published Friday, only 26 percent of respondents said they would purchase or lease a new car from a manufacturer that had declared bankruptcy.

General Motors Corp. lost nearly $5 billion in its North American automotive business in the first nine months of 2005, and speculation has mounted among investors that the auto maker may eventually be forced to file for Chapter 11 protection.
GM recently announced it would close 12 North American manufacturing plants as part of a plan to cut $7 billion in costs per year.

Company executives have denied they consider bankruptcy an option. They have noted that buying a car is a long-term commitment, and buyers will be put off if the manufacturer is bankrupt or considering bankruptcy.
The survey data indicate that consumer attitudes toward a bankrupt auto maker would differ significantly from those toward airlines that have filed for Chapter 11.
Several large airline companies, such as UAL Corp. and Northwest Airlines Corp., are in bankruptcy and continue to have passenger numbers similar to carriers that aren't bankrupt.

The survey polled 1063 randomly selected adults during the three weeks ending on Dec. 14. The results had a margin of error of plus or minus three percentage points.
Directions Research said the survey wasn't done at the request of a client nor paid for by an interest group.

Among other findings, 28 percent of those surveyed said they would consider purchasing a car from a Chinese company if it started selling in the United States.
Only 15 percent of respondents said they would purchase a car from an Indian company.




Link Posted: 12/27/2005 5:58:29 PM EDT
Maybe now they will start making cars that get more than 18 mpg.
Link Posted: 12/27/2005 6:01:42 PM EDT
Hmmmmmmmmmm...........looks like they better hire Lee Iacocha to handle the bail out. Remember, Chapter 11 is not Chapter 7. Anyone who flys today most likely flys on a bankrupt airline.

Regards,
Gary
Link Posted: 12/27/2005 6:03:10 PM EDT
Id still buy a GM product if I could afford it
Link Posted: 12/27/2005 6:03:17 PM EDT

Originally Posted By HarrySacz:
Maybe now they will start making cars that get more than 18 mpg.



They do. Its just that they fall apart in 5 yrs.
Link Posted: 12/27/2005 6:04:59 PM EDT
Why not buy a GM car if they file for bankrupcy? The company will still probably outlast the car
Link Posted: 12/27/2005 6:05:09 PM EDT

Originally Posted By HarrySacz:
Maybe now they will start making cars that get more than 18 mpg.


And aren't completely shitty, overpriced turds.

Doubt it.

GM: Generally Malfunctioning.


SG
Link Posted: 12/27/2005 6:05:38 PM EDT
Ok ,where the hell have you been for the last 6 months?
Link Posted: 12/27/2005 6:06:57 PM EDT

Originally Posted By MrClean4Hire:
Ok ,where the hell have you been for the last 6 months?



no good stories to post


family and work stuff going on.

Link Posted: 12/27/2005 6:07:01 PM EDT
Link Posted: 12/27/2005 6:10:09 PM EDT
Good to see you posting again Tactical Jew. There was just a thread with your name mentioned in it by Steyr Aug.
Link Posted: 12/27/2005 6:12:23 PM EDT

Originally Posted By GreyGoose:
Good to see you posting again Tactical Jew. There was just a thread with your name mentioned in it by Steyr Aug.




Must have heard us talking about him
Link Posted: 12/27/2005 6:12:41 PM EDT

Originally Posted By HarrySacz:
Maybe now they will start making cars that get more than 18 mpg.



C5 Corvette. 18/28 EPA rating, 350 HP, 350 ftlbs torque.
Link Posted: 12/27/2005 6:14:29 PM EDT
I would buy a car from a bankrupt car company if it was cheap enough.

By going bankrupt, and changing their union contracts, GM could make a cheaper, better, automobile.
Link Posted: 12/27/2005 6:33:40 PM EDT
Never had a problem with my 00 Silverado,115k on it,ran like a champ. Even with 4WD,and a long bed,V-8,it still got as good mileage as my Jeep Liberty. Had a great 5spd!
Link Posted: 12/27/2005 6:41:10 PM EDT
I will never buy a Chinese vehicle; not just because I prefer not to own commie crap (despite my best efforts, half the stuff I own is made in China anyway ) but because I'm willing to bet they'll be worse vehicles than Yugos.
Link Posted: 12/27/2005 6:42:20 PM EDT

Originally Posted By Swindle1984:
I will never buy a Chinese vehicle; not just because I prefer not to own commie crap (despite my best efforts, half the stuff I own is made in China anyway ) but because I'm willing to bet they'll be worse vehicles than Yugos.




Wasnt the guy who Imported Ygos looking to import cars from China
Link Posted: 12/27/2005 6:44:05 PM EDT
Kinda sad when you think about how GM stepped up to the plate after 9/11.
Link Posted: 12/27/2005 6:46:06 PM EDT

Originally Posted By captainpooby:

Originally Posted By HarrySacz:
Maybe now they will start making cars that get more than 18 mpg.



C5 Corvette. 18/28 EPA rating, 350 HP, 350 ftlbs torque.



A fast, expensive turd is still a turd.

SG

Link Posted: 12/27/2005 6:46:59 PM EDT

Originally Posted By ScaryGuy:

Originally Posted By captainpooby:

Originally Posted By HarrySacz:
Maybe now they will start making cars that get more than 18 mpg.



C5 Corvette. 18/28 EPA rating, 350 HP, 350 ftlbs torque.



A fast, expensive turd is still a turd.

SG




Not worth commenting.
Link Posted: 12/27/2005 6:48:21 PM EDT
[Last Edit: 12/27/2005 6:48:33 PM EDT by Lockedon]

Originally Posted By WildBoar:

Originally Posted By HarrySacz:
Maybe now they will start making cars that get more than 18 mpg.



They do. Its just that they fall apart in 5 yrs.





whoa!!! they last up to five years now??
Link Posted: 12/27/2005 7:25:31 PM EDT
My only issues would be these:

Does the manufacturer remain liable after bankruptcy for warranty support and recall liability?

If the company goes royally tits-up, can I still get parts?

Other than that, I just wouldn't care.
Link Posted: 12/27/2005 7:49:29 PM EDT
[Last Edit: 12/27/2005 7:50:57 PM EDT by DvlDog]
if GM had been smart they would have started cranking out user friendly, eco friendly Direct injected diesels instead of pissing away money on hybrid developement. imagine if you could buy a 4cyl diesel cobalt or malibu and get 50mpg without the sacrifices to driveability that comes with a hybrid. but nooooooo they kept trying to polish a turd and the american people got tired of it. i shucked out almost $40k for an avalanche with everything on it. piece of shit was using a quart of oil a month by the time i put 25,000miles on it. re-starting the engine when it was hot resulted in a james bond smokescreen. 7 trips to 2 different dealers and they insisted it was wator vapor. at 15,000 it needed a whole new brake system. rotors, master cylinder, lines, everything due to a casting problem. power mirror broke, bed cover panels warped, air conditioner wouldnt hold a charge.

all this happened in the first 18 months.

ETA: i bought the wife a VW diesel wagon, best car ever.
Link Posted: 12/27/2005 7:52:10 PM EDT
[Last Edit: 12/27/2005 7:55:11 PM EDT by Morpheus]

Originally Posted By captainpooby:
Kinda sad when you think about how GM stepped up to the plate after 9/11.



That's certainly true, but so did a lot of other automotive companies too, even the evil Japanese ones. They just didn't make TV ads bragging about it like GM did.

www.snopes.com/rumors/cars.htm
Link Posted: 12/27/2005 8:17:28 PM EDT
my '02 silverado has been driven like a taxicab for the last 121,000 miles

It's a 5.3 gas motor and I beat a bud in his diesel ford upthe grapevine in socal
his traler was a 16x6 oh and mine was 22x8 and had twice as much stuff in it

the brakes are the factory '02 brakes

I did splurge on the truck @ 100,000 miles I had it serviced...I skipped the earlier services
The oil has been changed every 3or4k

I'll buy another! when the wheels fall off!
Link Posted: 12/27/2005 8:25:49 PM EDT

Originally Posted By Morpheus:

Originally Posted By captainpooby:
Kinda sad when you think about how GM stepped up to the plate after 9/11.



That's certainly true, but so did a lot of other automotive companies too, even the evil Japanese ones. They just didn't make TV ads bragging about it like GM did.

www.snopes.com/rumors/cars.htm



So if my next door neighbor donates to charity that makes my donation a lesser value?
Link Posted: 12/27/2005 8:31:47 PM EDT

Originally Posted By Taxman:

Wasnt the guy who Imported Ygos looking to import cars from China


I think it was John "the snowman " Delorean wanting to import chinese cars
Unforately Im guessing the Chinese will learn fast and built decent cars just like the Koreans did
its amazing first the japs, then the Koreans undercut um , now the Cinese will undercut the Koreans
Im guessing Inda will be up next as Chinese labor becomes expensive
Link Posted: 12/27/2005 8:36:38 PM EDT
GM's management is so pathetic, that they managed to bankrupt their largest supplier by being 120 days behind on their payments.

I like some GM veichles, i really do, like the CTS and CTV-V, and their few sporty makes... but goddamn their management is indept and their manufacturing capability sluggish and out dated. In this world of cut throat, globalized capitalism, if you can't stay quick on your feet your gonna get screwed.
Link Posted: 12/27/2005 8:37:57 PM EDT
Buying a chineese car is so wrong but if some of the dickheads here dont understand why its no use trying to explain it to them. But than again I wont walk in walmart if they are giving away jessica simpson clones.
Link Posted: 12/27/2005 8:55:48 PM EDT

Originally Posted By captainpooby:

Originally Posted By Morpheus:

Originally Posted By captainpooby:
Kinda sad when you think about how GM stepped up to the plate after 9/11.



That's certainly true, but so did a lot of other automotive companies too, even the evil Japanese ones. They just didn't make TV ads bragging about it like GM did.

www.snopes.com/rumors/cars.htm



So if my next door neighbor donates to charity that makes my donation a lesser value?



No, I am simply saying that GM was not extraordinary in their response to 9/11 as compared to other automotive companies and therefore should not receive any extraordinary loyalty in this regard as opposed to Ford, Toyota, Nissan, etc. They just made ads about it while other companies chose not to.
Link Posted: 12/27/2005 8:55:57 PM EDT

Originally Posted By ScaryGuy:

Originally Posted By captainpooby: C5 Corvette. 18/28 EPA rating, 350 HP, 350 ftlbs torque.
A fast, expensive turd is still a turd. SG

C5's are surprisingly reliable, you can use it as a daily driver and run it like a dog. There are guys out there who have a C5 as their only car so they pile the miles on.
Link Posted: 12/27/2005 9:04:27 PM EDT

Originally Posted By Morpheus:

Originally Posted By captainpooby:

Originally Posted By Morpheus:

Originally Posted By captainpooby:
Kinda sad when you think about how GM stepped up to the plate after 9/11.



That's certainly true, but so did a lot of other automotive companies too, even the evil Japanese ones. They just didn't make TV ads bragging about it like GM did.

www.snopes.com/rumors/cars.htm



So if my next door neighbor donates to charity that makes my donation a lesser value?



No, I am simply saying that GM was not extraordinary in their response to 9/11 as compared to other automotive companies and therefore should not receive any extraordinary loyalty in this regard as opposed to Ford, Toyota, Nissan, etc. They just made ads about it while other companies chose not to followed suit.

Link Posted: 12/27/2005 9:30:34 PM EDT

Originally Posted By Taxman:
Id still buy a GM product if I could afford it



thats the point.................you cant afford it.


I would like to purchase one of those Chevy Colorado sport trucks, but it is too expensive for what it is.
Link Posted: 12/27/2005 9:32:22 PM EDT
[Last Edit: 12/27/2005 9:47:36 PM EDT by Morpheus]

Originally Posted By captainpooby:

Originally Posted By Morpheus:

Originally Posted By captainpooby:

Originally Posted By Morpheus:

Originally Posted By captainpooby:
Kinda sad when you think about how GM stepped up to the plate after 9/11.



That's certainly true, but so did a lot of other automotive companies too, even the evil Japanese ones. They just didn't make TV ads bragging about it like GM did.

www.snopes.com/rumors/cars.htm



So if my next door neighbor donates to charity that makes my donation a lesser value?



No, I am simply saying that GM was not extraordinary in their response to 9/11 as compared to other automotive companies and therefore should not receive any extraordinary loyalty in this regard as opposed to Ford, Toyota, Nissan, etc. They just made ads about it while other companies chose not to followed suit.




Yes, it was certainly nice that most if not all auto companies donated money or vehicles after 9/11. I really doubt those receiving the donations really cared who sent their checks in on what day or what hour, so maybe we shouldn't either! Besides, I would bet that the summation of all the employee donations that individual GM employees gave without fanfare far exceeded the amount that the big wigs chose to give in the company name.

"Leadership is doing what is right when no one is watching." - George Van Valkenburg

Now if only GM could start making vehicles that people actually wanted to buy they wouldn't have to worry about going bankrupt! That is the real issue here.
Link Posted: 12/27/2005 10:45:35 PM EDT

Originally Posted By www-glock19-com:
Unforately Im guessing the Chinese will learn fast and built decent cars just like the Koreans did
its amazing first the japs, then the Koreans undercut um , now the Cinese will undercut the Koreans



I agree - The next Sony, Toyota, Samsung and Nikon will be Chinese companies.

Just like the Japanese and Koreans, only the first-generation Chinese products are shoddy - They get better REAL quick after that.
Link Posted: 12/27/2005 10:57:29 PM EDT

Originally Posted By Barrelburner:
Why not buy a GM car if they file for bankrupcy? The company will still probably outlast the car


.

Buy a GOOD American built Car - a Toyota, make in the Good ole US of A.
Link Posted: 12/28/2005 3:48:38 AM EDT

Originally Posted By Aimless:

Originally Posted By LastDefender:
Hmmmmmmmmmm...........looks like they better hire Lee Iacocha to handle the bail out. Remember, Chapter 11 is not Chapter 7. Anyone who flys today most likely flys on a bankrupt airline.

Regards,
Gary



Chapter 11 usually becomes Chapter 7.



Not all the time with large companies. USAIR has been in Chapter 11 twice. So was Chrysler. They got a government bail-out. Certain companies are just too important for the government to let fail. I suspect GM would be such a company. After all the do make the Hummer

Chapter 11 is often used as a debt restructuring tool. The folks who get hurt are the debtors. Unless you supply a product or service that a Chapter 11 firm can't find elsewhere, expect pennies on the dollar on your outstanding debt.

I wonder how differently companies would be run if the Boards of Directors and Executives would risk their personal assets if the firm went Chapter 11?

Regards,
Gary
Link Posted: 12/28/2005 11:42:42 AM EDT
if gm went bankrupt and fired every high level corprate manager id buy gm again.
Link Posted: 12/28/2005 11:50:11 AM EDT

Originally Posted By rogue007:

Originally Posted By Taxman:
Id still buy a GM product if I could afford it



thats the point.................you cant afford it.


I would like to purchase one of those Chevy Colorado sport trucks, but it is too expensive for what it is.




I want a GTO myself, but looking at the price I dont see it happening
Link Posted: 12/28/2005 12:42:35 PM EDT
The issue is the amount of money these companys spends on retirement, health insurance, etc. for their employees that is what is killing GM. Also the fact that the euro and Jap cars are built better, and are about the same price. Prime example a GM (Caddy Escalade) 2WD SUV is more expensive than a Land Rover (yes I know Ford owns Land Rover I own one) LR3. The quality on the Escalade is crap compared to the LR3. The cost to manufactuer is more for GM to make a lower quality product due to expenses.

This is not just a US thing just look at Sony, they are going down the crapper. They don't even make their own LCD monitors, they OEM them from Samsung. Panasonic is kicking their ass on plasmas as well because their overhead is lower and they can invest in R&D and manufacturing plants. They could not deliver the PS3 before the X-BOX 360, and they are being sued for placing a "Spybot" on audio CD.

GM is also not inovative on body styles, aside from the Corvett most of their cars look like crap. I even own GMC vans for my company and feel fine saying this.
Link Posted: 12/28/2005 12:49:39 PM EDT
read the "GM Death Watch" editorials on this site.. very informative..

www.thetruthaboutcars.com/editorials.php
Link Posted: 12/28/2005 1:02:08 PM EDT

Originally Posted By Tactical_Jew:
------------------------

www.montereyherald.com/mld/montereyherald/business/13493977.htm

Posted on Tue, Dec. 27, 2005
Consumers won't buy from bankrupt car maker

Associated PressCHICAGO - Nearly three-quarters of Americans wouldn't buy a car from a bankrupt company, according to a recent survey.

In a nationwide survey by the Cincinnati-based research firm Directions Research Inc. published Friday, only 26 percent of respondents said they would purchase or lease a new car from a manufacturer that had declared bankruptcy.

General Motors Corp. lost nearly $5 billion in its North American automotive business in the first nine months of 2005, and speculation has mounted among investors that the auto maker may eventually be forced to file for Chapter 11 protection.
GM recently announced it would close 12 North American manufacturing plants as part of a plan to cut $7 billion in costs per year.

Company executives have denied they consider bankruptcy an option. They have noted that buying a car is a long-term commitment, and buyers will be put off if the manufacturer is bankrupt or considering bankruptcy.
The survey data indicate that consumer attitudes toward a bankrupt auto maker would differ significantly from those toward airlines that have filed for Chapter 11.
Several large airline companies, such as UAL Corp. and Northwest Airlines Corp., are in bankruptcy and continue to have passenger numbers similar to carriers that aren't bankrupt.

The survey polled 1063 randomly selected adults during the three weeks ending on Dec. 14. The results had a margin of error of plus or minus three percentage points.
Directions Research said the survey wasn't done at the request of a client nor paid for by an interest group.

Among other findings, 28 percent of those surveyed said they would consider purchasing a car from a Chinese company if it started selling in the United States.
Only 15 percent of respondents said they would purchase a car from an Indian company.




Thats it? 1000 people represent the millions? I have never held much faith in most polls anyways, hell we fire bomb lots ourselves.
Link Posted: 12/28/2005 1:11:13 PM EDT
[gunny Hartman]Well, no shit.[/gunny Hartman]
Link Posted: 12/28/2005 1:16:22 PM EDT
My next truck will be an F150 again. Even if they are having an "everything must go, we are shutting our doors" bankruptcy sale.
Link Posted: 12/28/2005 1:16:29 PM EDT


Originally Posted By ScaryGuy:


originally Posted By captainpooby: C5 Corvette. 18/28 EPA rating, 350 HP, 350 ftlbs torque.


A fast, expensive turd is still a turd. SG




Can tell you've never driven one, and are the class envy type
Link Posted: 12/28/2005 2:03:00 PM EDT


Buy a GOOD American built Car - a Toyota, make in the Good ole US of A.

I have bought 7 new trucks since 1980,all but one were Gmc.They were either made in Canada or Mexico.hatMy last truck which is a dodge diesel was made in Mexico.It sure seems like if you want to buy an automobile made buy American workers you have to buy Japanese. WTF
Link Posted: 12/28/2005 2:13:08 PM EDT

Originally Posted By Tactical_Jew:



Where ya been?
Link Posted: 12/28/2005 2:22:09 PM EDT
Link Posted: 12/28/2005 2:27:57 PM EDT

Originally Posted By Barrelburner:
Why not buy a GM car if they file for bankrupcy? The company will still probably outlast the car



Thats not saying much
Link Posted: 12/28/2005 2:43:53 PM EDT
Delorean is dead hoLink
Link Posted: 12/28/2005 3:23:24 PM EDT

Originally Posted By WinstonSmith:
... Does the manufacturer remain liable after bankruptcy for warranty support and recall liability?...


I believe that once a company declares bankruptcy its assets are liquidated and it’s dissolved.

I’d be like trying to return something you bought from Montgomery Ward – where would you go?

My guess is this topic really deals with bankruptcy protection.
Top Top